Cullumber Corporations trial balance at December 31, 2022, is presented below. All 2022 transactions have been recorded
Question:
Cullumber Corporation’s trial balance at December 31, 2022, is presented below. All 2022 transactions have been recorded except for the items described below.
Debit | Credit | |||
---|---|---|---|---|
Cash | $21,420 | |||
Accounts Receivable | 42,840 | |||
Inventory | 19,068 | |||
Land | 54,600 | |||
Buildings | 79,800 | |||
Equipment | 33,600 | |||
Allowance for Doubtful Accounts | $378 | |||
Accumulated Depreciation—Buildings | 25,200 | |||
Accumulated Depreciation—Equipment | 12,096 | |||
Accounts Payable | 16,212 | |||
Interest Payable | –0– | |||
Dividends Payable | –0– | |||
Unearned Rent Revenue | 6,720 | |||
Bonds Payable (10%) | 42,000 | |||
Preferred Stock ($20 par) | –0– | |||
Paid-in Capital in Excess of Par—Preferred Stock | –0– | |||
Common Stock ($10 par) | 25,200 | |||
Paid-in Capital in Excess of Par—Common Stock | 5,040 | |||
Retained Earnings | 63,042 | |||
Treasury Stock | –0– | |||
Cash Dividends | –0– | |||
Sales Revenue | 478,800 | |||
Rent Revenue | –0– | |||
Bad Debt Expense | –0– | |||
Interest Expense | –0– | |||
Cost of Goods Sold | 336,000 | |||
Depreciation Expense | –0– | |||
Other Operating Expenses | 32,760 | |||
Salaries and Wages Expense | 54,600 | |||
Total | $674,688 | $674,688 |
Unrecorded transactions and adjustments:
1. | On January 1, 2022, Cullumber issued 840 shares of $20 par, 6% preferred stock for $18,480. | |
2. | On January 1, 2022, Cullumber also issued 840 shares of common stock for $19,320. | |
3. | Cullumber reacquired 252 shares of its common stock on July 1, 2022, for $49 per share. | |
4. | On December 31, 2022, Cullumber declared the annual cash dividend on the preferred stock and a $1.50 per share dividend on the outstanding common stock, all payable on January 15, 2023. | |
5. | Cullumber estimates that uncollectible accounts receivable at year-end are $4,284. | |
6. | The building is being depreciated using the straight-line method over 30 years. The salvage value is $4,200. | |
7. | The equipment is being depreciated using the straight-line method over 10 years. The salvage value is $3,360. | |
8. | The unearned rent was collected on October 1, 2022. It was receipt of 4 months’ rent in advance (October 1, 2022 through January 31, 2023). | |
9. | The 10% bonds payable pay interest every January 1. The interest for the 12 months ended December 31, 2022, has not been paid or recorded. |
(Ignore income taxes.)
(a)
Prepare journal entries for the transactions and adjustment listed above. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
No. | Account Titles and Explanation | Debit | Credit |
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1. | enter an account title | enter a debit amount | enter a credit amount |
enter an account title | enter a debit amount | enter a credit amount | |
enter an account title | enter a debit amount | enter a credit amount | |
2. | enter an account title | enter a debit amount | enter a credit amount |
enter an account title | enter a debit amount | enter a credit amount | |
enter an account title | enter a debit amount | enter a credit amount | |
3. | enter an account title | enter a debit amount | enter a credit amount |
enter an account title | enter a debit amount | enter a credit amount | |
4. | enter an account title | enter a debit amount | enter a credit amount |
enter an account title | enter a debit amount | enter a credit amount | |
5. | enter an account title | enter a debit amount | enter a credit amount |
enter an account title | enter a debit amount | enter a credit amount | |
6. | enter an account title | enter a debit amount | enter a credit amount |
enter an account title | enter a debit amount | enter a credit amount | |
7. | enter an account title | enter a debit amount | enter a credit amount |
enter an account title | enter a debit amount | enter a credit amount | |
8. | enter an account title | enter a debit amount | enter a credit amount |
enter an account title | enter a debit amount | enter a credit amount | |
9. | enter an account title | enter a debit amount | enter a credit amount |
enter an account title | enter a debit amount | enter a credit amount |
Intermediate Accounting IFRS
ISBN: 9781119607519
4th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield