Record the following entries in general journal form for December, 2020: December 1: Recorded sales on...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Record the following entries in general journal form for December, 2020: December 1: Recorded sales on account of $100,000, 2/10, net 30. Cost of inventory was 63,500. Company uses the net method for accounting for sales. ✓December 2: Purchased Land for a future building site for $700,000, paying $200,000 down and signed a 5%, 90-day note for the balance. ✓December 3: Bought back 1000 shares of stock for $17 per share. ✓December 4: Purchased $40,000 worth of equipment, 5 year life, $5,000 salvage value, for cash. Equipment will be depreciated using the straight-line method of depreciation. ✓ December 5: Paid invoice of $31,500 to supplier. The invoice related to inventory purchase which had been previously recorded. December 6: Issued 5000 shares of restricted stock to its CFO. The stock has a fair value of $120,000. The service period related to this restricted stock is 3 years. Vesting occurs if the CFO stays with the company for 3 years. The par value of the stock is $1. December 8: Purchased inventory of $44,000 on account with terms 2/10 net 60. Cascade uses the net. method for its purchases. ✓December 9: Received payment related to sale on December 1. ✓December 15: Recorded cash sales of $124,000, cost of merchandise inventory was $74,90 ✓December 16: Issued 11,000 shares of common stock at $22.00 per share. ✓December 17: Paid for 12/8 inventory purchase. December 18: Paid off short-term note from 12/1 trial balance plus interest of $3,582. ✓December 19: Purchased $210,000 inventory on account with terms 3/15, net 30. Cascade uses the net method for its purchases. ✓ December 20: Recorded sales on account of $413,000, cost of merchandise inventory was $175,000. December 21: Paid $3,500 of utilities previously accrued. ✓December 24: Sold 500 shares of Treasury Stock for $17.50 per share. December 26: Wrote off 4,500 in bad debt. Record the following adjusting entries in general journal form as of December 31, 2020: ✓1. Supplies on hand at the end of the year: $700 ✓2. Equipment shown on the 12/1 TB was purchased on 1/1/17, has a 8 year life, no salvage value and company uses double-declining balance method for its depreciation. 3. Included in the truck balance is a fully depreciated truck for $6,500 and a new truck valued at $50,000 which was purchased on 1/1/17. The new truck has a 9-year life, no salvage value and the company uses the sum-of-the-years digits for its depreciation method on this asset. ✔4. Don't forget to depreciate the new equipment! ✓5. The patent was purchased on 1/1/2013 for $100,000 and its useful life is 20 years. ✓6. $40,600 was paid on October 1, 2020 for six months rent. ✓7. On February 1, 2020, paid $38,500 for a 12-month insurance policy. ✓8. Declared dividends of $30,000 on December 31 ✓9. The fair market value of the securities (classified as trading) is $17,000. 10. 3% of Accounts Receivable is estimated to be uncollectible. Company uses the allowance method for estimating its uncollectible accounts.. ✓11. Accrued salaries expense of $6,000 and recorded Payroll tax expense on account of $2300. 12. Had issued $300,000 of 6%, 10-year bond, dated 1/1/18 for $323,383 when the market rate was 5%. Interest is paid on June 30 and January 1 using the effective interest rate method. The June payment is included in the Dec. 1 TB. (Additional credit awarded if amortization table is included) 13. One month has passed since the issuance of restricted stock. 14. Interest on 30 days of note payable, dated 12/1/20 should be accrued. (Assume 360 days in a year for calculation) ✓15. Accrued interest of 7% on long-term note payable of $175,000. 16. Income tax rate is 21% Additional Information: During 2020, the following additional transactions occurred: (Hint: these are already included in 12/1/20 TB, but may be needed for the Statement of Cash Flows) 1. Issued 5,000 shares of common stock, $1 par, for $40,000 on June 1, 2020. 2. Some equipment was sold (original cost $10,000, book value $6,000) for $3,000 (do not consider in your #2 AJE above) 3. All amortization and depreciation is recorded once a year on December 31. Acet 100 Cash 101 Accounts Receivable 102 127 128 130 175 201 202 203 204 205 206 207 103 104 105 106 107 Supplies 125 Equipment 126 Accumulated Depreciation Equipment Truck Accumulated Depreciation Truck 208 221 225 226 301 302 304 305 Description 306 310 401 Cascade Trifort, Inc. Trial Balance December 1, 2020 Allowance for Doubtful Accounts Trading Securities Inventory Prepaid Rent Prepaid Insurance Land Patents Accounts Payable Salaries Payable Utilities Payable Payroll Taxes Payable Interest Payable Dividends Payable Income Tax Payable Note Payable-short term Note Payable-long term Bond Payable Premium on Bond Payable Common Stock, $1 par, 35,000 shares APIC Common Stock Unearned Compensation Treasury Stock APIC Treasury Stock Retained Earnings Sales DR 707,685 788,501 18,000 110,000 40,600 38,500 3,600 150,000 56,500 35,000 65,000 CR 7,900 82,719 32,542 368,300 78,000 17,000 28,417 19,585 71,640 175,000 300,000 18,572 45,000 158,000 242,000 653,000 225 226 301 302 304 305 306 310 401 500 600 601 602 604 605 606 607 608 609 610 611 612 614 615 617 620 Totals Bond Payable Premium on Bond Payable Common Stock, $1 par, 35,000 shares APIC Common Stock Unearned Compensation Treasury Stock APIC Treasury Stock Retained Earnings Sales Cost of Goods Sold Compensation Expense Salaries Expense Rent Expense Bad Dept Expense Payroll Tax Expense Advertisting Expense Insurance Expense Supplies Expense Depreciation Expense Amortization Expense Utilities Expense Miscellaneous Expenses Interest Expense Income Tax Expense Realized Gains (Losses) Unrealized Gains (Losses) 175,000 42,000 23,000 15,000 7,000 17,000 3,300 7,990 2.303.675 D 300,000 18,572 45,000 158,000 242,000 653,000 6,000 2,303,675 Record the following entries in general journal form for December, 2020: December 1: Recorded sales on account of $100,000, 2/10, net 30. Cost of inventory was 63,500. Company uses the net method for accounting for sales. ✓December 2: Purchased Land for a future building site for $700,000, paying $200,000 down and signed a 5%, 90-day note for the balance. ✓December 3: Bought back 1000 shares of stock for $17 per share. ✓December 4: Purchased $40,000 worth of equipment, 5 year life, $5,000 salvage value, for cash. Equipment will be depreciated using the straight-line method of depreciation. ✓ December 5: Paid invoice of $31,500 to supplier. The invoice related to inventory purchase which had been previously recorded. December 6: Issued 5000 shares of restricted stock to its CFO. The stock has a fair value of $120,000. The service period related to this restricted stock is 3 years. Vesting occurs if the CFO stays with the company for 3 years. The par value of the stock is $1. December 8: Purchased inventory of $44,000 on account with terms 2/10 net 60. Cascade uses the net. method for its purchases. ✓December 9: Received payment related to sale on December 1. ✓December 15: Recorded cash sales of $124,000, cost of merchandise inventory was $74,90 ✓December 16: Issued 11,000 shares of common stock at $22.00 per share. ✓December 17: Paid for 12/8 inventory purchase. December 18: Paid off short-term note from 12/1 trial balance plus interest of $3,582. ✓December 19: Purchased $210,000 inventory on account with terms 3/15, net 30. Cascade uses the net method for its purchases. ✓ December 20: Recorded sales on account of $413,000, cost of merchandise inventory was $175,000. December 21: Paid $3,500 of utilities previously accrued. ✓December 24: Sold 500 shares of Treasury Stock for $17.50 per share. December 26: Wrote off 4,500 in bad debt. Record the following adjusting entries in general journal form as of December 31, 2020: ✓1. Supplies on hand at the end of the year: $700 ✓2. Equipment shown on the 12/1 TB was purchased on 1/1/17, has a 8 year life, no salvage value and company uses double-declining balance method for its depreciation. 3. Included in the truck balance is a fully depreciated truck for $6,500 and a new truck valued at $50,000 which was purchased on 1/1/17. The new truck has a 9-year life, no salvage value and the company uses the sum-of-the-years digits for its depreciation method on this asset. ✔4. Don't forget to depreciate the new equipment! ✓5. The patent was purchased on 1/1/2013 for $100,000 and its useful life is 20 years. ✓6. $40,600 was paid on October 1, 2020 for six months rent. ✓7. On February 1, 2020, paid $38,500 for a 12-month insurance policy. ✓8. Declared dividends of $30,000 on December 31 ✓9. The fair market value of the securities (classified as trading) is $17,000. 10. 3% of Accounts Receivable is estimated to be uncollectible. Company uses the allowance method for estimating its uncollectible accounts.. ✓11. Accrued salaries expense of $6,000 and recorded Payroll tax expense on account of $2300. 12. Had issued $300,000 of 6%, 10-year bond, dated 1/1/18 for $323,383 when the market rate was 5%. Interest is paid on June 30 and January 1 using the effective interest rate method. The June payment is included in the Dec. 1 TB. (Additional credit awarded if amortization table is included) 13. One month has passed since the issuance of restricted stock. 14. Interest on 30 days of note payable, dated 12/1/20 should be accrued. (Assume 360 days in a year for calculation) ✓15. Accrued interest of 7% on long-term note payable of $175,000. 16. Income tax rate is 21% Additional Information: During 2020, the following additional transactions occurred: (Hint: these are already included in 12/1/20 TB, but may be needed for the Statement of Cash Flows) 1. Issued 5,000 shares of common stock, $1 par, for $40,000 on June 1, 2020. 2. Some equipment was sold (original cost $10,000, book value $6,000) for $3,000 (do not consider in your #2 AJE above) 3. All amortization and depreciation is recorded once a year on December 31. Acet 100 Cash 101 Accounts Receivable 102 127 128 130 175 201 202 203 204 205 206 207 103 104 105 106 107 Supplies 125 Equipment 126 Accumulated Depreciation Equipment Truck Accumulated Depreciation Truck 208 221 225 226 301 302 304 305 Description 306 310 401 Cascade Trifort, Inc. Trial Balance December 1, 2020 Allowance for Doubtful Accounts Trading Securities Inventory Prepaid Rent Prepaid Insurance Land Patents Accounts Payable Salaries Payable Utilities Payable Payroll Taxes Payable Interest Payable Dividends Payable Income Tax Payable Note Payable-short term Note Payable-long term Bond Payable Premium on Bond Payable Common Stock, $1 par, 35,000 shares APIC Common Stock Unearned Compensation Treasury Stock APIC Treasury Stock Retained Earnings Sales DR 707,685 788,501 18,000 110,000 40,600 38,500 3,600 150,000 56,500 35,000 65,000 CR 7,900 82,719 32,542 368,300 78,000 17,000 28,417 19,585 71,640 175,000 300,000 18,572 45,000 158,000 242,000 653,000 225 226 301 302 304 305 306 310 401 500 600 601 602 604 605 606 607 608 609 610 611 612 614 615 617 620 Totals Bond Payable Premium on Bond Payable Common Stock, $1 par, 35,000 shares APIC Common Stock Unearned Compensation Treasury Stock APIC Treasury Stock Retained Earnings Sales Cost of Goods Sold Compensation Expense Salaries Expense Rent Expense Bad Dept Expense Payroll Tax Expense Advertisting Expense Insurance Expense Supplies Expense Depreciation Expense Amortization Expense Utilities Expense Miscellaneous Expenses Interest Expense Income Tax Expense Realized Gains (Losses) Unrealized Gains (Losses) 175,000 42,000 23,000 15,000 7,000 17,000 3,300 7,990 2.303.675 D 300,000 18,572 45,000 158,000 242,000 653,000 6,000 2,303,675
Expert Answer:
Answer rating: 100% (QA)
Prepare journal entries as follows Date Dec 01 Dec 02 Dec 03 Dec 04 Dec 05 Dec 06 Dec 08 Dec 0... View the full answer
Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
Posted Date:
Students also viewed these accounting questions
-
Record the following entries in general journal form for December 2021: December 1: Purchased Equipment for $200,000, paid $100,000 down, and signed a 4%, 90-day note for the balance. This equipment...
-
Record the following selected transactions in general journal form for Sun Orthopedic Clinic, Inc. Include a brief explanation of the transaction as part of each journal entry. Oct. 1 The clinic...
-
Record each of the following transactions in general journal form and then show the effect of the transaction in a horizontal statements model. The first transaction is shown as an example. a....
-
The following data pertain to the securities of Linford Company during 2012, the companys first year of operations: a. Purchased 400 shares of Persimmon Corporation stock at $40 per share plus a...
-
The Empire District Electric Company, headquartered in Joplin, Missouri, provides electric services and also distributes natural gas to customers primarily in the states of Missouri, Kansas,...
-
To make an industrial solvent, benzene (C 6 H 6 ) is provided at a molar flow rate of 1140 kgmol/hr. Toluene (C 7 H 8 ) is also added to the benzene at a rate of 213 kgmol/hr to enhance the solvent...
-
A normal shock occurs in a stream of oxygen. The oxygen flows at \(\mathrm{Ma}=1.8\) and the upstream pressure and temperature are 15 psia and \(85^{\circ} \mathrm{F}\). (a) Calculate the following...
-
Round tree Manufacturing Co. is preparing its year-end financial statements and is considering the accounting for the following items. 1. The vice president of sales had indicated that one product...
-
RITY (Percent of terrorists caught) The blue curve on the following graph shows the tradeoff between security and tourism; that is, combinations of security and tourism above the blue curve are not...
-
Youve just secured a new client in your accounting practice, Peter's Pool Corporation (PPC), a brand new small business specializing in pool service. The owner, Peter Peck, is a terrific swimmer and...
-
One of the principal purposes of federal income taxes is to: redistribute wealth by leveling after-tax income. reward public servants. correct injustice. buy special interest votes. support social...
-
A spring-cart system and a simple pendulum both have the same period near Earth's surface. What happens to the period of each motion when both systems are in orbit inside the International Space...
-
Even when a piano and a trumpet play the same note (which means the sounds have the same frequency \(f\) ), the two instruments sound completely different. What is it about the sound from the...
-
Suppose a simple pendulum consisting of a bob of mass \(m\) suspended from a string of length \(\ell\) is pulled back and released. What is the period of oscillation of the bob?
-
Hand-to-Mouth (H2M) is currently cash-constrained and must decide whether to delay paying one of its suppliers or take out a loan. They owe the supplier \($10,000\) with terms of 2.2/10 Net 40, so...
-
Is the typical up-and-down motion of a yo-yo periodic motion, assuming no energy is dissipated? Is it simple harmonic motion?
-
Welcome to week 5. This week we will be discussing an important topic, teacher evaluations. There has been a big push to count the teacher evaluation as a determining factor toward incentive pay...
-
Zelda Manufacturing organized in June and recorded the following transactions during June, its first month of operations: 1. Purchased materials costing $800,000. 2. Used direct materials in...
-
Marys TV uses a perpetual inventory system. The following are three recent merchandising transactions: Mar. 6 Purchased eight TVs from Whosa Industries on account. Invoice price, $350 per unit, for a...
-
Why does cost-volume-profit analysis focus upon operating income instead of net income?
-
Differentiate between a heat pump and a refrigerator.
-
Define COP of a heat pump and a refrigerator.
-
Define the term Entropy.
Study smarter with the SolutionInn App