how do i prepare journal entries, ledger, and unadjusted trial balance?

Viezuchter Company, April 1 - December 31 (Assume all purchases are made in cash unless otherwise stated) April 1" The company sold some outdated equipment. The old equipment had a historical cost of $10,000, accumulated depreciation of $500 and was sold for $9,300 cash. Viezochter replaced the sold equipment with a $30,000 new machine and made repairs to some proexisting equipment for $10,000 to keep the equipment at full capacity. The new equipment has a useful life of 3 years and no estimated salvage. Kris and William reached a mutual decision to discontinue its flagging restorations segment of business, holding it for sale but continuing their restoration operations until the division was sold. In addition, they determined there was ample demand to begin merchandising available engine parts. Vieruchter paid off all of its existing accounts payable and purchased another $150,000 of supplies n credit, deciding that its increasing business warranted a bulk order. Viezuchter paid its employees the $1,000 owed from the prior quarter. The company paid its estimated taxes from the first quarter. Viczuchter established a prepaid contract with a local shipping company, agreeing to repairs its trucks over a period of one year for $150,000; cash was paid by the shipping company on April 1-the contract entitles the customer to unlimited repairs over the period. William suggests the company recognize revenue ratably over the year. William invested $75,000 in debt securities and $40,000 in equity securities. William suggested Viezachter Co. hold S50,000 of the debt securities as held to maturity and the remaining $25,000 debt securities as available for sale (all debt securities had a maturity of 20 years and were issued at par, both issues have a 3% stated rate payable 3/31 of each year). The equity securities were all classified as trading securities Trading Securities - Equity Securities Available for Sale Securities - Debt Securities Held-to-Maturity Securities - Debt Securities Cash 160,000 100,000 200,000 460,000 Merchandising purchase and sales log Viczuchter uses the specific identification method to assign the cost of merchandise sold. All inventory purchases are made on credit and all sales are made in cash. Viezuchter uses the perpetual system of recording inventory transactions, recording cost of goods sold with each sale on the day the sale is made. Date Transaction Sale price Cost 4/1 Purchase NA $30,000 4/30 Sale $31,000 $22,000 S/1 Purchase NA $41,000 6/20 Sale $45,000 $27,000 8/51 Sale $30,000 $20,000 10/1 Purchase NA $50,000 11/5 Sale $72,000 $42,500 April 2" - December 31" (for simplicity date all transactions as of 12/31) . April 2 - December 31" (for simplicity date all transactions as of 12/31) The company's invoices indicated the following repairs and restorations: Repairs to diesel engines $1,300,000 Restoring cars $32,500 70% of these services were paid in cash and 30% through customers paying on credit. $125,000 of supplies were used in rendering these services. Vieruchter paid its outstanding supply and inventory credit contracts for garage supplies leaving a $15,000 balance to be paid in 2020. Utilities expenses incurred during these months amounted to $85,000 and were paid on 12/31. Vienachter collected $350,000 of its credit sales. Viezuchter paid its employees $300,000 for their services during 2019 and promised a $10,000 bonus based on commissions and service quotas met during the year that would be paid on January 1, 2020. Kris withdrew $120,000 at the end of the year. After some finngling by William, Viezuchter Co. fuces an effective tax rate of 18%. William informed Kris that the company would need to estimate the potential defaults resulting from Viezuchter's credit sales and assessed the bad debt at $2,700 at year end. Additional notes for advanced transactions Investment accounting - recording fluctuations in value The available-for-sale securities had an unrealized net loss of $2,000 in value and the trading securities had an unrealized net gain of $4,500 in value, while its held-to-maturity securities had an unrealized net gain of S1,000, William advises these are adjusting entries that must be made in addition to the other adjustments He also notes that the appropriate accounting treatment for unrealized gains and losses for trading and available-for-sale securities uses an adjunct account "Security Fair Value Adjustment" to mark the investments to their market value on the balance sheet. These adjusting journal entries are recorded as follows: . . 12/31 Accumulated Other Comprehensive Income $1,640 Deferred Tax Asset 360 Unrealised Holding Loss on Available for Sale 2,000 William notes that we must account for the impact that selling at a loss would have on our future income taxes. If we told the securities at a $2,000 loss position, this would result ini tux savings of 5360; hence, the deferred tax asset is recorded. Discontinued segment - restorations segment William knew the discontinued restoration division would require separate footnote presentation and prepared the following balance of assets and liabilities that pertained to that division: Book value Fair value Cash $ 16,000 $ 16,000 Accounts receivable S 2,000 $ 2,000 Garage supplies S 6,750 $ 6,750 Equipment $ 15,000 $ 5,000 Accumulated depreciation $ (3,000) Accounts payable S Net Value 6.750 $ 6,750 S 30.000 S 23,000 William also attributed 10% of all operating expenses to the discontinued division and suggested the following journal entry to recognize impairment of the discontinued division as suggested by the table above 12/31 Impairment Los $7,000 Accumulated Depreciation Equipment 3,000 Equipment 10.000 Assignment Part I: Prepare journal entries, adjusting entries and closing entries for the period 4/1 - 12/31 as well as the corresponding unadjusted adjusted and post closing trial balances as of 12/31 Show transcribed image text View comments) > Writing Flashcards Math Solver Internships assume a purchases are made in casn unless otherwise statea) April 1" The company sold some outdated equipment. The old equipment had a historical cost of $10,000, accumulated depreciation of $500 and was sold for $9,300 cash. Viezachter replaced the sold equipment with a $30,000 now machine and made repairs to some preexisting equipment for $10,000 to keep the equipment at full capacity. The new equipment has a useful life of 3 years and no estimated salvage. Kris und William reached a mutual decision to discontinue its flagging restorations segment of business, holding it for sale but continuing their restoration operations until the division was sold. In addition, they determined there was amplo demand to begin merchandising available engine parts. Viezachter paid off all of its existing accounts payable and purchased another $150,000 of supplies on credit, deciding that its increasing business warranted a bulk order. Viczachter paid its employees the $1,000 owed from the prior quarter. The company paid its estimated taxes from the first quarter. Vierachter established a prepaid contract with a local shipping company, agreeing to repairs its trucks over a period of one year for $150,000; cash was paid by the shipping company on April 1-the contract entitles the customer to unlimited repairs over the period. William suggests the company recognize revenue ratably over the year. William invested $75,000 in debt securities and $40,000 in equity securities. William suggested Vierachter Co. hold $50,000 of the debt securities as held to maturity and the remaining $25,000 debt securities as available for sale (all debt securities had a maturity of 20 years and were issued at par, both issues have a 3% stated rate payable 3/31 of each year). The equity securities were all classified as trading securities William correctly suggests the following journal entry for these securities: Trading Securities - Equity Securities 160,000 . alists 160 Viezuchter Company, April 1 - December 31 (Assume all purchases are made in cash unless otherwise stated) April 1" The company sold some outdated equipment. The old equipment had a historical cost of $10,000, accumulated depreciation of $500 and was sold for $9,300 cash. Viezochter replaced the sold equipment with a $30,000 new machine and made repairs to some proexisting equipment for $10,000 to keep the equipment at full capacity. The new equipment has a useful life of 3 years and no estimated salvage. Kris and William reached a mutual decision to discontinue its flagging restorations segment of business, holding it for sale but continuing their restoration operations until the division was sold. In addition, they determined there was ample demand to begin merchandising available engine parts. Vieruchter paid off all of its existing accounts payable and purchased another $150,000 of supplies n credit, deciding that its increasing business warranted a bulk order. Viezuchter paid its employees the $1,000 owed from the prior quarter. The company paid its estimated taxes from the first quarter. Viczuchter established a prepaid contract with a local shipping company, agreeing to repairs its trucks over a period of one year for $150,000; cash was paid by the shipping company on April 1-the contract entitles the customer to unlimited repairs over the period. William suggests the company recognize revenue ratably over the year. William invested $75,000 in debt securities and $40,000 in equity securities. William suggested Viezachter Co. hold S50,000 of the debt securities as held to maturity and the remaining $25,000 debt securities as available for sale (all debt securities had a maturity of 20 years and were issued at par, both issues have a 3% stated rate payable 3/31 of each year). The equity securities were all classified as trading securities Trading Securities - Equity Securities Available for Sale Securities - Debt Securities Held-to-Maturity Securities - Debt Securities Cash 160,000 100,000 200,000 460,000 Merchandising purchase and sales log Viczuchter uses the specific identification method to assign the cost of merchandise sold. All inventory purchases are made on credit and all sales are made in cash. Viezuchter uses the perpetual system of recording inventory transactions, recording cost of goods sold with each sale on the day the sale is made. Date Transaction Sale price Cost 4/1 Purchase NA $30,000 4/30 Sale $31,000 $22,000 S/1 Purchase NA $41,000 6/20 Sale $45,000 $27,000 8/51 Sale $30,000 $20,000 10/1 Purchase NA $50,000 11/5 Sale $72,000 $42,500 April 2" - December 31" (for simplicity date all transactions as of 12/31) . April 2 - December 31" (for simplicity date all transactions as of 12/31) The company's invoices indicated the following repairs and restorations: Repairs to diesel engines $1,300,000 Restoring cars $32,500 70% of these services were paid in cash and 30% through customers paying on credit. $125,000 of supplies were used in rendering these services. Vieruchter paid its outstanding supply and inventory credit contracts for garage supplies leaving a $15,000 balance to be paid in 2020. Utilities expenses incurred during these months amounted to $85,000 and were paid on 12/31. Vienachter collected $350,000 of its credit sales. Viezuchter paid its employees $300,000 for their services during 2019 and promised a $10,000 bonus based on commissions and service quotas met during the year that would be paid on January 1, 2020. Kris withdrew $120,000 at the end of the year. After some finngling by William, Viezuchter Co. fuces an effective tax rate of 18%. William informed Kris that the company would need to estimate the potential defaults resulting from Viezuchter's credit sales and assessed the bad debt at $2,700 at year end. Additional notes for advanced transactions Investment accounting - recording fluctuations in value The available-for-sale securities had an unrealized net loss of $2,000 in value and the trading securities had an unrealized net gain of $4,500 in value, while its held-to-maturity securities had an unrealized net gain of S1,000, William advises these are adjusting entries that must be made in addition to the other adjustments He also notes that the appropriate accounting treatment for unrealized gains and losses for trading and available-for-sale securities uses an adjunct account "Security Fair Value Adjustment" to mark the investments to their market value on the balance sheet. These adjusting journal entries are recorded as follows: . . 12/31 Accumulated Other Comprehensive Income $1,640 Deferred Tax Asset 360 Unrealised Holding Loss on Available for Sale 2,000 William notes that we must account for the impact that selling at a loss would have on our future income taxes. If we told the securities at a $2,000 loss position, this would result ini tux savings of 5360; hence, the deferred tax asset is recorded. Discontinued segment - restorations segment William knew the discontinued restoration division would require separate footnote presentation and prepared the following balance of assets and liabilities that pertained to that division: Book value Fair value Cash $ 16,000 $ 16,000 Accounts receivable S 2,000 $ 2,000 Garage supplies S 6,750 $ 6,750 Equipment $ 15,000 $ 5,000 Accumulated depreciation $ (3,000) Accounts payable S Net Value 6.750 $ 6,750 S 30.000 S 23,000 William also attributed 10% of all operating expenses to the discontinued division and suggested the following journal entry to recognize impairment of the discontinued division as suggested by the table above 12/31 Impairment Los $7,000 Accumulated Depreciation Equipment 3,000 Equipment 10.000 Assignment Part I: Prepare journal entries, adjusting entries and closing entries for the period 4/1 - 12/31 as well as the corresponding unadjusted adjusted and post closing trial balances as of 12/31 Show transcribed image text View comments) > Writing Flashcards Math Solver Internships assume a purchases are made in casn unless otherwise statea) April 1" The company sold some outdated equipment. The old equipment had a historical cost of $10,000, accumulated depreciation of $500 and was sold for $9,300 cash. Viezachter replaced the sold equipment with a $30,000 now machine and made repairs to some preexisting equipment for $10,000 to keep the equipment at full capacity. The new equipment has a useful life of 3 years and no estimated salvage. Kris und William reached a mutual decision to discontinue its flagging restorations segment of business, holding it for sale but continuing their restoration operations until the division was sold. In addition, they determined there was amplo demand to begin merchandising available engine parts. Viezachter paid off all of its existing accounts payable and purchased another $150,000 of supplies on credit, deciding that its increasing business warranted a bulk order. Viczachter paid its employees the $1,000 owed from the prior quarter. The company paid its estimated taxes from the first quarter. Vierachter established a prepaid contract with a local shipping company, agreeing to repairs its trucks over a period of one year for $150,000; cash was paid by the shipping company on April 1-the contract entitles the customer to unlimited repairs over the period. William suggests the company recognize revenue ratably over the year. William invested $75,000 in debt securities and $40,000 in equity securities. William suggested Vierachter Co. hold $50,000 of the debt securities as held to maturity and the remaining $25,000 debt securities as available for sale (all debt securities had a maturity of 20 years and were issued at par, both issues have a 3% stated rate payable 3/31 of each year). The equity securities were all classified as trading securities William correctly suggests the following journal entry for these securities: Trading Securities - Equity Securities 160,000 . alists 160