Enter the following column headings across the top of a sheet of paper: Enter the transaction/adjustment letter
Question:
Enter the following column headings across the top of a sheet of paper:
Enter the transaction/adjustment letter in the first column and show the effect, if any, of each of the transactions/adjustments on the appropriate balance sheet category or on the income statement by entering the amount and indicating whether it is an addition (+) or a subtraction (-). You may also write the journal entries to record each transaction/adjustment.
a. Wages of $465 for the last three days of the fiscal period have not been accrued.
b. Interest of $340 on a bank loan has not been accrued.
c. Interest on bonds payable has not been accrued for the current month. The company has outstanding 5480.000 of 6.5% bonds.
d. The discount related to the bonds in part c has not been amortized for the current month. The current month amortization is $150.
e. Product warranties were honored during the month: parts inventory items valued at $1.660 were sent to customers making claims, and cash refunds of $820 were also made.
f. During the fiscal period, advance payments from customers totaling $3.000 were received and recorded as sales revenues. The items will not be delivered to the customers until the next fiscal period. Record the appropriate adjustment.
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
Accounting What the Numbers Mean
ISBN: 978-1259535314
11th edition
Authors: David Marshall, Wayne McManus, Daniel Viele