December 31, 2030 Accounts Debit Credit Cash Accounts Receivable 105,800 14,600 Allowance for Bad Debts Inventory...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
December 31, 2030 Accounts Debit Credit Cash Accounts Receivable 105,800 14,600 Allowance for Bad Debts Inventory Prepaid Advertising Supplies Accounts Payable Unearned Revenue Long-Term Note Payable Common Stock Retained Earnings 1,900 10,000 1,200 4,200 14,200 12,000 7,000 72,900 28,800 Sales Revenue Cost of Goods Sold Wages Expense Utility Expense 74,200 40,200 10,700 3,400 Advertising Expense Totals Adjusting & Other Entries: 20,900 211,000 211,000 December 31: In reviewing the bank statement, we find that during December, $2,100 in revenue was incorrectly debited to inventory instead of cash (the credit was correct). December 31: Determine that we earned (but haven't received) $21,300 in interest revenue on our savings account during the year. December 31: We earned $9,900 in sweets sales revenue during December 2030 that was paid for in advance by our customers. The cost of those sweets was $3,900. Prepare entries to record both the sale and cost of goods sold. Record both entries. December 31: Entire year's advertising ($1,200 per month) was paid in advance on January 1, 2030 (recorded in January)-one month of Prepaid Advertising remains to be recorded as Advertising Expense. December 31: Determined that $3,000 of supplies were used during the year. December 31: December utilities are $1,999. The bill will be paid in January 2031. Utilities Expense and Utilities Payable should be recorded. December 31: The company has not recorded bad debt expense for 2030. Sinfully uses the Aging (or %) of Receivables approach and estimates that the ending balance in the Allowance for Bad Debts should be $5,900 (Hint: Look at Chapter 8 notes - Aging or % of Receivables approach). December 31: The long-term note payable was recorded on August 1, 2030. The interest and the note are due on July 31, 2035. Interest rate is 9.5%. Record 2030 interest expense. December 31: Calculate Net Income Before Taxes and then record income taxes as 35% of this number (use the Multiple-Step Income Statement) - use this tax # to record the final adjusting entry for Income Tax Expense & Income Tax Payable AND as the Income Tax Expense figure in your Multiple-Step Income Statement. Note The taxes will be paid in March 2031. December 31: The bookkeeper forgot to enter a journal entry into the system. Therefore, you must also record an entry for a $12,000 dividend payment that the company made to its shareholders. (Debit Dividends & Credit Cash). This entry will not affect the tax entry above, as Dividends are not recorded on the Income Statement (but instead reduce RE on the Statement of RE). December 31: Calculate Net Income Before Taxes and then record income taxes as 35% of this number (use the Multiple-Step Income Statement) – use this tax # to record the final adjusting entry - for Income Tax Expense & Income Tax Payable AND as the Income Tax Expense figure in your Multiple-Step Income Statement. Note → The taxes will be paid in March 2026. December 31: The bookkeeper forgot to enter a journal entry into the system. Therefore, you must also record an entry for a $5,000 dividend payment that the company made to its shareholders. (Debit Dividends & Credit Cash). This entry will not affect the tax entry above, as Dividends are not recorded on the Income Statement (but instead reduce RE on the Statement of RE). 3 December 31, 2030 Accounts Debit Credit Cash Accounts Receivable 105,800 14,600 Allowance for Bad Debts Inventory Prepaid Advertising Supplies Accounts Payable Unearned Revenue Long-Term Note Payable Common Stock Retained Earnings 1,900 10,000 1,200 4,200 14,200 12,000 7,000 72,900 28,800 Sales Revenue Cost of Goods Sold Wages Expense Utility Expense 74,200 40,200 10,700 3,400 Advertising Expense Totals Adjusting & Other Entries: 20,900 211,000 211,000 December 31: In reviewing the bank statement, we find that during December, $2,100 in revenue was incorrectly debited to inventory instead of cash (the credit was correct). December 31: Determine that we earned (but haven't received) $21,300 in interest revenue on our savings account during the year. December 31: We earned $9,900 in sweets sales revenue during December 2030 that was paid for in advance by our customers. The cost of those sweets was $3,900. Prepare entries to record both the sale and cost of goods sold. Record both entries. December 31: Entire year's advertising ($1,200 per month) was paid in advance on January 1, 2030 (recorded in January)-one month of Prepaid Advertising remains to be recorded as Advertising Expense. December 31: Determined that $3,000 of supplies were used during the year. December 31: December utilities are $1,999. The bill will be paid in January 2031. Utilities Expense and Utilities Payable should be recorded. December 31: The company has not recorded bad debt expense for 2030. Sinfully uses the Aging (or %) of Receivables approach and estimates that the ending balance in the Allowance for Bad Debts should be $5,900 (Hint: Look at Chapter 8 notes - Aging or % of Receivables approach). December 31: The long-term note payable was recorded on August 1, 2030. The interest and the note are due on July 31, 2035. Interest rate is 9.5%. Record 2030 interest expense. December 31: Calculate Net Income Before Taxes and then record income taxes as 35% of this number (use the Multiple-Step Income Statement) - use this tax # to record the final adjusting entry for Income Tax Expense & Income Tax Payable AND as the Income Tax Expense figure in your Multiple-Step Income Statement. Note The taxes will be paid in March 2031. December 31: The bookkeeper forgot to enter a journal entry into the system. Therefore, you must also record an entry for a $12,000 dividend payment that the company made to its shareholders. (Debit Dividends & Credit Cash). This entry will not affect the tax entry above, as Dividends are not recorded on the Income Statement (but instead reduce RE on the Statement of RE). December 31: Calculate Net Income Before Taxes and then record income taxes as 35% of this number (use the Multiple-Step Income Statement) – use this tax # to record the final adjusting entry - for Income Tax Expense & Income Tax Payable AND as the Income Tax Expense figure in your Multiple-Step Income Statement. Note → The taxes will be paid in March 2026. December 31: The bookkeeper forgot to enter a journal entry into the system. Therefore, you must also record an entry for a $5,000 dividend payment that the company made to its shareholders. (Debit Dividends & Credit Cash). This entry will not affect the tax entry above, as Dividends are not recorded on the Income Statement (but instead reduce RE on the Statement of RE). 3
Expert Answer:
Answer rating: 100% (QA)
1 Correcting Revenue Entry This adjustment corrects the misclassification of revenue Revenue of 2100 was incorrectly debited to Inventory instead of Cash To correct this Debit Inventory 2100 To reduce ... View the full answer
Related Book For
Accounting Information Systems basic concepts and current issues
ISBN: 978-0078025334
3rd edition
Authors: Robert Hurt
Posted Date:
Students also viewed these accounting questions
-
The unadjusted trial balance for GLP Corporation appears on the next page. End-of-period analysis revealed the following: a. The market value of equipment had decreased by 30 percent of its original...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-6. On December 12, Irene purchased the building where her store is located. She paid...
-
Assuming @Weather is a valid repeatable annotation that takes a String, with its associated containing type annotation @Forecast, which of the following can be applied to a type declaration? (Choose...
-
Maximize f = 39x + 5y + 30z subject to 5x + 5z 7 3x + 5y 30 3x + 5y 18 Use the simplex method. Assume all variables are nonnegative.
-
A sinusoidal wave is traveling on a string with speed 40 cm/s. The displacement of the particles of the string at x = 10 cm is found to vary with time according to the equation y = (5.0 cm) sin[1.0 ...
-
What is the payback period for the project described below? Machine investment $24,999 MARR 18% Annual benefit $5,000 Annual maintenance Life Salvage value $2,500 7 years $1,000
-
What happens to overhead rates based on direct labor when automated equipment replaces direct labor?
-
Module 4 addresses risk, specifically systematic risk.The current pandemic has dramatically increased overall and systematic risk in equity markets. What can or should be done, if anything, to calm...
-
A storeroom is used to organize items stored in it on N shelves. Shelves are numbered from 0 to N-1. The K-th shelf is dedicated to items of only one type, denoted by a positive integer A[K]....
-
Throughout the year, Factory Overhead at Michaels Camping Supply had the following activities: applied costs of $90,500 and actual costs of $88,100 previous to the month of June. Use the information...
-
Remove the seasonal pattern from the above dataset. 2. Project the trend of De-seasonalized expenditure on Time. 3. In the 5th year, how much expenditure will change? 4. In the beginning of 6th year,...
-
a b C d Use the data given here, including the seasonal index, do the following: (5-points) Create seasonal index numbers using the simple average method. (2-points) Deseasonalize the data....
-
Prepare income statement with correct form. TRANSACTIONS LIST A ACCT NO. ACCOUNT TITLE ASSETS 10100 Cash 10200 Accounts receivable 10300 Allowance for doubtful accounts 10400 Inventory 10600...
-
Magana is a medium-sized, all equity-financed, unquoted company which specializes in the development and production berbal concoctions to cure colds and fhi. Its small but ingenious R &D team has...
-
The financial statements of Parco and Subco for the year ended December 31, 2020 are provided as follows: Cash Accounts receivable Note receivable Inventory Property, plant and equipment Accumulated...
-
A spring with unstretched length of 1 m is attached to the 5-kg smooth collar, as shown, and the collar is released from rest at A. Determine the total energy (kinetic and potential) at A. 200 N/m
-
Suppose you need to answer any four of seven essay questions on a history test and you can answer them in any order. a. How many different question combinations are possible? b. What is the...
-
a. How might an HR outsourcing company use e-business to attract new clients? To accomplish its goals for existing clients? b. How would an HR outsourcing firm use the four ERP modules discussed in...
-
Multiple choice questions. This series of questions deals with XBRLs Global Ledger taxonomy. Before attempting to answer them, point your Web browser to www.xbrl.org. Locate the slide presentation on...
-
Please match each item on the right with the best item on the left. 1. Business strategy risk 2. Foreign Corrupt Practices Act 3. General controls 4. Legal and regulatory 5. Liquidity 6. Reasonable...
-
For fluids with \(\operatorname{Pr} <1\) the velocity profile is assumed to be a cubic for \(y
-
Consider the flat-plate heat transfer to be solved by the similarity approach. Show all the details leading to Eq. (18.15). What are the boundary conditions on \(\theta\) ? Extend your MATLAB code to...
-
Show all the steps leading to the integral balance equation (18.6) in the text. Use the following boundary conditions and verify Eq. (18.7). (i) At \(y=0, T=T_{\mathrm{S}}\). (ii) At...
Study smarter with the SolutionInn App