a) Record adjusting entries, as needed, for the additional information provided above. b) Calculate the revised earnings
Fantastic news! We've Found the answer you've been seeking!
Question:
a) Record adjusting entries, as needed, for the additional information provided above.
b) Calculate the revised earnings for the period, reflecting the adjustments in requirement 1.
c) Record any reversing entries that are appropriate.
Transcribed Image Text:
The trial balance for Computer Guru Consulting Ltd., on 31 December 20X2, for the 20X2 fiscal year. No adjustments have been made in 20X2. Cash Accounts receivable Allowance for doubtful accounts Inventory Equipment Accumulated depreciation, equipment Accounts payable Unearned revenue Note payable Common shares Retained earnings Dividends Sales Cost of goods sold Wages Operating expenses Sales salaries $11.200 18,400 98,500 156,300 18,420 574,420 194,130 69,120 46,060 $ 680 25,300 78,620 12,510 93,000 39,610 95,050 841,780 Other information: a. The note payable had an interest rate of 6%. $49,000 was borrowed on 1 February, and the balance was borrowed on 1 June 20X2. No interest was paid in 20X2. b. An inventory count showed that goods with a cost of $87,380 were on hand at the end of the year. c. Operating expenses include an insurance policy that was effective on 1 January 20X2 and runs for three years. The policy cost $5,280. d. An unpaid supplier invoice for heating oil for $3,520 has been recorded for $6,160 in error. e. A customer paid a $8,800 down payment on a job in December; this amount was credited to unearned custon com revenue. The job is about 50% complete but has not been finished or reviewed with the customer. The remaining $2,900 in unearned revenue is an advance from a customer, for a job that has been cancelled; this amount will be refunded to the customer shortly. nded f. Depreciation on equipment has not yet been recorded. The equipment is three years old at the end of 20X2, and estimates. useful life and salvage value have not changed since it was acquired. Lune, and csinates and basis. line Depreciation is recorded on a straight-line baary 20X3 showed that sales of $39,800 actually took g. A review of invoices sent to customers in January comber Ther coloc connected place in December. These sales were connected with goods that cost $12,980. The product had been physically removed from inventory in December, and inventory and cost of sales were properly recorded in December. Sales were not recorded until January A revie h. A review of invoices and payments in early January 20X3 showed some expenses that were related to Teview December but not recorded until January: operating expenses, $5,500, and sales salaries, $4,060. i. A payment for business operating expenses was made by one of the shareholders in 20X2, and he then Pod submitted the $12,110 invoice for payment. When he was reimbursed, the amount was debited to dividends. j. Accounts receivable were reviewed, and it was determined that $6,310 of accounts receivable are unlikely to be collected, although the company is still making collection attempts. (Percentage of accounts receivable method is used by the company.) The trial balance for Computer Guru Consulting Ltd., on 31 December 20X2, for the 20X2 fiscal year. No adjustments have been made in 20X2. Cash Accounts receivable Allowance for doubtful accounts Inventory Equipment Accumulated depreciation, equipment Accounts payable Unearned revenue Note payable Common shares Retained earnings Dividends Sales Cost of goods sold Wages Operating expenses Sales salaries $11.200 18,400 98,500 156,300 18,420 574,420 194,130 69,120 46,060 $ 680 25,300 78,620 12,510 93,000 39,610 95,050 841,780 Other information: a. The note payable had an interest rate of 6%. $49,000 was borrowed on 1 February, and the balance was borrowed on 1 June 20X2. No interest was paid in 20X2. b. An inventory count showed that goods with a cost of $87,380 were on hand at the end of the year. c. Operating expenses include an insurance policy that was effective on 1 January 20X2 and runs for three years. The policy cost $5,280. d. An unpaid supplier invoice for heating oil for $3,520 has been recorded for $6,160 in error. e. A customer paid a $8,800 down payment on a job in December; this amount was credited to unearned custon com revenue. The job is about 50% complete but has not been finished or reviewed with the customer. The remaining $2,900 in unearned revenue is an advance from a customer, for a job that has been cancelled; this amount will be refunded to the customer shortly. nded f. Depreciation on equipment has not yet been recorded. The equipment is three years old at the end of 20X2, and estimates. useful life and salvage value have not changed since it was acquired. Lune, and csinates and basis. line Depreciation is recorded on a straight-line baary 20X3 showed that sales of $39,800 actually took g. A review of invoices sent to customers in January comber Ther coloc connected place in December. These sales were connected with goods that cost $12,980. The product had been physically removed from inventory in December, and inventory and cost of sales were properly recorded in December. Sales were not recorded until January A revie h. A review of invoices and payments in early January 20X3 showed some expenses that were related to Teview December but not recorded until January: operating expenses, $5,500, and sales salaries, $4,060. i. A payment for business operating expenses was made by one of the shareholders in 20X2, and he then Pod submitted the $12,110 invoice for payment. When he was reimbursed, the amount was debited to dividends. j. Accounts receivable were reviewed, and it was determined that $6,310 of accounts receivable are unlikely to be collected, although the company is still making collection attempts. (Percentage of accounts receivable method is used by the company.)
Expert Answer:
Answer rating: 100% (QA)
a Adjusting entries 1 Accrued interest on note payable Interest expense 2940 Note payable 2940 2 Dep... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these accounting questions
-
Analyze Trusty Companys trial balance and the additional information provided to determine the following: A. What is causing the trial balance to be out of balance B. Any other errors that require...
-
Assume the additional information provided below for the four stocks in Problem 7-2. a. Assuming equal weights for each stock, what are the standard deviations for the following portfolios? A, B, and...
-
Given the additional information provided in Part B (i.e., quarterly information by loan type), please determine if Northwest Bank's interest income from loans reported at December 31, 2014 appears...
-
The Trial Balance and Adjustments columns of the worksheet of Wells Decorating Centre included these accounts and balances at December 31, 2017: Required Wells Decorating Centre uses the perpetual...
-
Chambers Brokerage Services Inc. was formed on May 1, 2006. The following transactions took place during the first month. Transactions on May 1: 1. Stockholders invested $120,000 cash in the company...
-
In an issue of Discover (Vol. 26, No. 2, pp. 10-11), J. Netting described the research of E. Tibbetts of the University of Arizona in the article, "The Kind of Face Only a Wasp Could Trust." Tibbetts...
-
Define the two main environmental objectives proposed for management of companies: sustainable development and eco-efficiency. Are these objectives related?
-
Required Identify which of the following items are added to or subtracted from the unadjusted book balance to arrive at the true cash balance. Distinguish the additions from the subtractions by...
-
4. Rewrite the integral c1c2-2y c2-x-2y in the order dx dy dz. 10 dz dx dy
-
Prepare a purchases return (journal) book from the following transactions for April 2017. 2017 April 05 10 17 28 Returned goods to M/s Kartik Traders Goods returned to Sahil Pvt. Ltd. Goods returned...
-
The divisional accountant for Quickbridge, Inc.'s R&D division has reached out to you for help. At the beginning of this year her division developed a new set of machinery that can be used to...
-
A large bakery that serves many retail stores is trying to determine how many pounds of butter to order. They estimate that that the demand for butter for the various products that they make averages...
-
Shampoo Soap Bar When Zara initially started selling soaps, she had a very small range - all were organic coconut oilbased soaps fragranced with one essential oil-- and each soap bar was sold for...
-
What will happen after I apply for a RN license in Oregon? (What is your response?) *please explain in your own words minimum 200 words.
-
Discuss one specific database: Microsoft SQL Server, which you plan to use as part of your work. Examine the SQL Server website for information about this particular technology and make sure to...
-
Mr. and Mrs. Randall Davis were shopping for a truck to tow their 18-foot trailer. They went to Dave's Discount Autos, a used car dealership. The owner, Dave, showed them an F-350 truck which was...
-
The Java class below defines a queue data structure with a fixed capacity. public class FixedCapacityQueue { int[] mData = null; int mHead=0; // index of first full cell int mTail=0; // index of next...
-
Find the intercepts and then graph the line. (a) 2x - 3y = 6 (b) 10 - 5x = 2y
-
Jerry made the following contributions during 2012: His synagogue (by check).....................................................$680 The Democratic Party (by check)...
-
Russell (age 50) and Linda (age 45) Long have brought you the following information regarding their income and expenses for the current year. Russell owns and operates a landscaping business called...
-
Frederick (Freddy) Freeweights (age 42) owns and operates a health club called ''Treadmills West.'' The business is located at 4321 Arnold Street, Alpine, CA 91901. Freddy had the following income...
-
Recording effects of transactions in T-accounts Record the transactions below for Amena Company by recording debit and credit amounts directly in the following T-accounts: Cash; Accounts Receivable;...
-
Identifying type and normal balances of accounts For each of the following (1) identify the type of account as an asset, liability, equity, revenue, or expense, (2) enter debit (Dr.) or credit (Cr.)...
-
Preparing a trial balance After recording the transactions of Exercise 3-2 in T-accounts and calculating the ending balance of each account, prepare a trial balance. Use May 31, 2008, as its report...
Study smarter with the SolutionInn App