ACCT$495$ Capstone Project Fall $2019*$Closing Entries Worksheet Only$*$

Part $1$ Adjusting entries & Statements

$12/31/2019$ Year$-$end Adjustment Data for Bruce and Emmett Corp is as follows:

$1.$ $$300,000$ in sales on account had not been recorded but were shipped FOB Shipping Point on December $31.$ The cost of this inventory was $$140,000.$ Bruce and Emmett use a perpetual inventory system.

$2.$ Employees are allowed to carry over up to $10$ days of earned vacation days per year up to $40$ days. Employees earn an average of $$150$ per day. A total of $500$ earned vacation days will be carried over to $2020.$ It is probable that the employees will take the vacation days.

$3.$ Accrued wages at December $31,2019$ amount to $$50,000.$

$4.$ You discover that a product sale was made and recorded in December for $$50,000$; the product had not yet been shipped. The cost of the product was $$24,000.$

$5.$ The Prepaid Expense account balance includes the $$24,000$ cost of a two year insurance policy purchased on April $1,2019.($Prepaid Expense was debited for $$24,000$ on April $1,2019)$

$6.$ Depreciation & Amortization expense for the year is $$150,000$

$7.$ Interest expense accrued on its long$-$term liabilities is $$35,000.$

$8.$ A dividend of $$40,000$ was declared on December $16,$ to be paid on January $15,2020$

$9.$ It is estimated that $5\%$ of accounts receivable will be uncollectable.

$10.$ Income tax expense is $30\%$ of income before income tax.

E$.$ Record Closing Entries