Golden Wedding Dress Company designs custom wedding dresses for brides to be. The person preparing the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Golden Wedding Dress Company designs custom wedding dresses for brides to be. The person preparing the adjusting entries at year-end was unable to complete the adjustments due to illness. You have been given the following unadjusted trial balance along with some additional information for the December 31, 2017, year-end. Account Accounts receivable Accum. deprec., building Accum. deprec., equipment Advance sales Allowance for doubtful accounts Building Cash Equipment Estimated warranty liability Income tax expense Land Merchandise inventory Mortgage payable Sarah Golden, capital Note payable Other operating expenses Sales Sales returns and allowances Unadjusted Balance $ 82,400 132,000 348,000 232,000 700 447,000 88,700 651,000 4,800 33,950 137,000 73,000 231,000 223,750 166,000 1,177,000 1,361,000 9,200 Other information: 1. Assume all accounts have a normal balance. 2.75% of the balance in the Advance Sales account is for wedding dresses to be made and delivered by Golden during 2018; the remaining 25% is from sales earned during 2017. 3. Golden warranties its wedding dresses against defects and estimates its warranty liability to be 2% of adjusted net sales. 4. The 3%, 5-year note payable was issued on October 1, 2017; interest is payable annually each September 30. 5. A partial amortization schedule for the mortgage follows: Year 2015 2016 2017 2018 2019 Interest Expense $ 11,986 11,106 10,192 9,240 8,250 Principal Portion $ 21,993 22,873 23,787 24,739 25,729 Annual Payment* $ 33,979 33,979 33,979 33,979 33,979 Principal Balance at Dec. 31 $ 277,660 254,788 231,000 206,261 180,532 *Payments are made annually each January 2. 6. Uncollectible accounts are estimated to be 1.5% of outstanding receivables. 7. A physical count of the inventory showed a balance actually on hand of $63,200. 8. The balance in Income Tax Expense represents taxes accrued and paid for the 2017 year at the rate of $3,086 per month. Assume the income tax rate is 20%. Required: 1. Based on the information provided, journalize the adjusting entries at December 31, 2017. Golden Wedding Dress Company designs custom wedding dresses for brides to be. The person preparing the adjusting entries at year-end was unable to complete the adjustments due to illness. You have been given the following unadjusted trial balance along with some additional information for the December 31, 2017, year-end. Account Accounts receivable Accum. deprec., building Accum. deprec., equipment Advance sales Allowance for doubtful accounts Building Cash Equipment Estimated warranty liability Income tax expense Land Merchandise inventory Mortgage payable Sarah Golden, capital Note payable Other operating expenses Sales Sales returns and allowances Unadjusted Balance $ 82,400 132,000 348,000 232,000 700 447,000 88,700 651,000 4,800 33,950 137,000 73,000 231,000 223,750 166,000 1,177,000 1,361,000 9,200 Other information: 1. Assume all accounts have a normal balance. 2.75% of the balance in the Advance Sales account is for wedding dresses to be made and delivered by Golden during 2018; the remaining 25% is from sales earned during 2017. 3. Golden warranties its wedding dresses against defects and estimates its warranty liability to be 2% of adjusted net sales. 4. The 3%, 5-year note payable was issued on October 1, 2017; interest is payable annually each September 30. 5. A partial amortization schedule for the mortgage follows: Year 2015 2016 2017 2018 2019 Interest Expense $ 11,986 11,106 10,192 9,240 8,250 Principal Portion $ 21,993 22,873 23,787 24,739 25,729 Annual Payment* $ 33,979 33,979 33,979 33,979 33,979 Principal Balance at Dec. 31 $ 277,660 254,788 231,000 206,261 180,532 *Payments are made annually each January 2. 6. Uncollectible accounts are estimated to be 1.5% of outstanding receivables. 7. A physical count of the inventory showed a balance actually on hand of $63,200. 8. The balance in Income Tax Expense represents taxes accrued and paid for the 2017 year at the rate of $3,086 per month. Assume the income tax rate is 20%. Required: 1. Based on the information provided, journalize the adjusting entries at December 31, 2017.
Expert Answer:
Answer rating: 100% (QA)
To prepare the adjusting entries for Golden Wedding Dress Company we need to consider the additional information provided Lets go through each adjustm... View the full answer
Related Book For
Fundamental Accounting Principles Volume 2
ISBN: 9781260881332
17th Canadian Edition
Authors: Kermit D. Larson, Heidi Dieckmann, John Harris
Posted Date:
Students also viewed these accounting questions
-
Determine the limit of y = x-1, as x approaches 2. A. Copy and complete the table of value. X 1 1.5 1.9 1.99 1.999 2 2.001 2.01 2.1 2.5 3 y= x-1 B. As x approaches 2 from the left, starting at x = 1,...
-
Golden Wedding Dress Company designs custom wedding dresses for brides to be. The person preparing the adjusting entries at year-end was unable to complete the adjustments due to illness. You have...
-
Golden Wedding Dress Company designs custom wedding dresses for brides to be. The person preparing the adjusting entries at year-end was unable to complete the adjustments due to illness. You have...
-
On January 5, Jones Ventures Inc. purchased 40% of the outstanding stock of Pilots Manufacturing Corp. The purchase was 20,000 shares at $10 per share. Jones received dividends from Pilots in the...
-
Prepare a bridge working paper ICP1 describing the strengths and weaknesses identified by number on the payroll flowchart For each strength describe one or more test of controls audit procedures that...
-
Arantxa Corporation made the following cash purchases of securities during 2008, which is the first year in which Arantxa invested in securities. 1. On January 15, purchased 10,000 shares of Sanchez...
-
Corporation completed the following transactions, in the order given, relative to the portfolio of stocks held as equity investments measured at FV-NI. Year 2020 1. Purchased 150 shares of Starbux...
-
Portland Company's Ironton Plant produces precast ingots for industrial use. Carlos Santiago, who was recently appointed general manager of the Ironton Plant, has just been handed the plant's income...
-
Problem 1 A company made the following merchandise purchases and sales during the month of July: July 1 purchased 380 units at $15 each July 5 purchased 270 units at $20 each July 9 sold 500 units at...
-
Consolidation related simulation example: Millennium Capital Management, Inc., (MCM) acquired a 90% interest in NextGen, Inc. MCM's Financial Manager, Matthew Steven, has prepared a draft memo to the...
-
Whenare you ordering more than average demand and when are you ordering less than average demand in a newsvendor model? (discuss it in terms of related costs)
-
The following information has been provided by Crosby Corporation: Direct Labor $6,100 Direct Materials Used 2,800 Direct Materials Purchased 6,000 Cost of Goods Manufactured 16,000 Ending...
-
" 1. The interest rate for a 3 years EUR 50,000 loan is r = (1.0 + q/5) %. r (%) Calculate the annual instalment and the total cost of finance for a fixed instalment plan. CF = (Rx) 2. The annual...
-
You throw a ball vertically upward from the roof of a tall building . The ball leaves your hand at a point even with the roof railing with an upward speed of 1 5 m / s the ball is then in free fall ....
-
6. Quality aspects in production: 20 A company produces the "Classic 2 Slice Toaster" and in the production it is observed that the number of defects recently have increased since they started...
-
c) Using the spreadsheet data in Table 1 given below with energy use and HDD by month for 2020, develop a scatter plot and show the linear equation and Regression factor. Is this a line of good fit...
-
Section 2.1 Practice 2 Part 2 of 2 eBook Hint Print Saved Required information NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. A steel...
-
On March 31, 2018, Gardner Corporation received authorization to issue $30,000 of 9 percent, 30-year bonds payable. The bonds pay interest on March 31 and September 30. The entire issue was dated...
-
On December 11, 2023, the Sydney Company borrowed $42,000 and signed a 60-day, 5.5% note payable. Calculate the accrued interest payable on December 31, 2023.
-
TechCom has provided the following selected account information, in alphabetical order, from its adjusted trial balance at October 31, 2023 (assume normal balances): Prepare the asset section of the...
-
On April 21, 2023, Wilson agrees to invest $30,000 into Quest, a land development partnership in Niagara-on-the-Lake, for a 20% interest in total partnership equity. At the time Wilson is admitted,...
-
When $25 of merchandise is returned for a credit on account, what is the amount of the credit to Accounts Receivable, assuming a 6% sales tax rate? (a) $1.50 (c) $26.50 (b) $25.00 (d) $31.00
-
When $300, plus sales tax of 6%, is received for an amount previously owed, Cash is debited for what amount? (a) $18 (c) $300 (b) $318 (d) $282
-
Cash receipts should a) be posted to customer accounts daily. b) be posted to customer accounts weekly. c) be posted to customer accounts at the end of the month. d) not be posted.
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App