Required: Prepare accounting general journal entries to adjust the preliminary trial balance for the transactions listed...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Required: Prepare accounting general journal entries to adjust the preliminary trial balance for the transactions listed above. You should present each entry in the following format, using dollar values in S'000. Dr Cr . . Cash and cash equivalents Trade Receivables $1,000 $1,000 Note: Do not worry about indentation of the Cr part of the transaction. You should use the tab key to align values and accounts as shown. Note: Any expense without a direct presented account should be expenses to Other expenses. Cash and cash equivalents Trade receivable Allowance for credit losses Prepayments Short-term investments Property, plant and equipment Accumulated depreciation Lease assets Intangibles (Net) Trade payables Current tax liabilities Short-term lease obligations Current portion of borrowings Other current liabilities Non-current portion of debt Lease obligations Share capital Retained earnings Revenue Cost of sales Salaries and wages expenses Financing expenses Depreciation and amortisation expense Lease expenses Other expenses Tax expense Dividends Dr ($'000) 20,321 43,231 4,441 14,264 60,912 10,456 70,348 897 1,324 12,567 1,567 2,784 Cr ($'000) 15,123 20,987 7,654 3,476 5,423 10,389 10,121 60,489 4,987 76,542 2,773 25,148 Now that the trial balance has been corrected, your next task is to adjust the balance of accounts to reflect certain accounting matters that are otherwise unknown to the accounting system and generally dependent on the judgement of accountants or information not available to the computer system. These adjustments and transactions are as follows: a) For the year, depreciation of buildings and the computer systems is determined to be $1,212,000 (or $1,212 in shortened terms). b) You determine that there should be an impairment of certain patents held by Clip that are no longer valid at law, and accordingly should have no value. These patents are included in the preliminary trial balance at a value of $150,000 (or $150 in shortened terms). c) At the end of the fiscal year, the company has one month of interest owing that has not yet been paid. This interest amounts to $1,623,000 (or $1,623 in shortened terms) d) At the end of the fiscal year, the company has one month of wages and salaries to be accrued. This amount will be paid on the following day and is valued at $120,000 (or $120 in shortened terms). e) Tax expenses have not yet been recorded. Due to a range of eligible discounts, the corporate tax rate paid by the company is 25%. f) No dividend has been declared or paid. Required: Prepare accounting general journal entries to adjust the preliminary trial balance for the transactions listed above. You should present each entry in the following format, using dollar values in S'000. Dr Cr . . Cash and cash equivalents Trade Receivables $1,000 $1,000 Note: Do not worry about indentation of the Cr part of the transaction. You should use the tab key to align values and accounts as shown. Note: Any expense without a direct presented account should be expenses to Other expenses. Cash and cash equivalents Trade receivable Allowance for credit losses Prepayments Short-term investments Property, plant and equipment Accumulated depreciation Lease assets Intangibles (Net) Trade payables Current tax liabilities Short-term lease obligations Current portion of borrowings Other current liabilities Non-current portion of debt Lease obligations Share capital Retained earnings Revenue Cost of sales Salaries and wages expenses Financing expenses Depreciation and amortisation expense Lease expenses Other expenses Tax expense Dividends Dr ($'000) 20,321 43,231 4,441 14,264 60,912 10,456 70,348 897 1,324 12,567 1,567 2,784 Cr ($'000) 15,123 20,987 7,654 3,476 5,423 10,389 10,121 60,489 4,987 76,542 2,773 25,148 Now that the trial balance has been corrected, your next task is to adjust the balance of accounts to reflect certain accounting matters that are otherwise unknown to the accounting system and generally dependent on the judgement of accountants or information not available to the computer system. These adjustments and transactions are as follows: a) For the year, depreciation of buildings and the computer systems is determined to be $1,212,000 (or $1,212 in shortened terms). b) You determine that there should be an impairment of certain patents held by Clip that are no longer valid at law, and accordingly should have no value. These patents are included in the preliminary trial balance at a value of $150,000 (or $150 in shortened terms). c) At the end of the fiscal year, the company has one month of interest owing that has not yet been paid. This interest amounts to $1,623,000 (or $1,623 in shortened terms) d) At the end of the fiscal year, the company has one month of wages and salaries to be accrued. This amount will be paid on the following day and is valued at $120,000 (or $120 in shortened terms). e) Tax expenses have not yet been recorded. Due to a range of eligible discounts, the corporate tax rate paid by the company is 25%. f) No dividend has been declared or paid.
Expert Answer:
Related Book For
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
Posted Date:
Students also viewed these accounting questions
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Complete General entries for following question: Gordon Corporation is a company that specializes in the design of custom hardware and software solutions for manufacturing companies. The company is...
-
Presented below are a number of transactions for the City of Smithville that occurred during fiscal year 2017, the year for which the budget given in Chapter 3 was recorded. Read all instructions...
-
Measure each amount given in Problems 1721. a. Container C in ounces b. Container C in milliliters mL 500- 400- 300 200- 100 cups 2 1 -16-ez -14 oz -12 oz -110 oz 8 oz -16 oz -4 oz 2 oz Container C...
-
For each of the following independent situations, determine: (a) Whether the bonds sold at face (maturity) value, at a premium (more than face value), or at a discount (less than face value), and (b)...
-
Determine the oxidation states of the element emboldened in each of the following species: (a) SO 3 2 , (b) NO + , (c) Cr 2 O 7 2 , (d) V 2 O 5 , (e) PCl 5 .
-
What is a bona fide occupational qualification (BFOQ)?
-
The unadjusted trial balance of Avery Air Purification System at December 31, 2018, and the data needed for the adjustments follow. Adjustment data at December 31 follow: a. On December 15, Avery...
-
XYZ Limited is a listed company on the Jamaica Stock Exchange. Its market capitalization as at December 3 1 , 2 0 1 5 was $ 5 5 0 m and the outstanding shares at the same date was 4 0 , 0 0 0 , 0 0 0...
-
Jones Company Edward Jones started the Jones Company Limited (JCL) as a sole proprietorship. It was later incor-- porated; ownership is now 50 percent controlled by Mr. Jones, who is 71 years old,...
-
Your Company is considering a new project that will require $870,000 of new equipment at the start of the project. The equipment will have a depreciable life of 7 years and will be depreciated to a...
-
Identify a current meme and track its origin, or create your own meme using a meme generator like www.memecreator.org.
-
What is another name for a function declaration?
-
Draw the general format of a balance sheet.
-
How can the marketing funnel, customer journey, and levels of engagement guide marketing objectives and the appropriate choice of KPIs?
-
Classify the following balance sheet items into assets, liabilities, and owners equity: ITEMS Cash Equipment Accounts payable Land Accounts receivable Common stock Building Notes payable Cash...
-
For the given cost function C(x) = 44100+500 + a find: a) The cost at the production level 1950 b) The average cost at the production level 1950 c) The marginal cost at the production level 1950 d)...
-
Place a tick in the appropriate grid to identify the balance that would be brought down in each of the following named accounts, in the books of Rizwy Mohamed: (a) In the Cash account: if Rizwy...
-
The New York Stock Exchange (NYSE) and the National Association of Securities Dealers (NASD) require that listed firms have audit committees of independent (that is, outside) company directors. Audit...
-
The statement of cash flows for the year ended December 31, 2014, and other data for Bradley Corporation are shown below: Additional data: a. Bradleys Dividends receivable account decreased by $2,000...
-
1. What are free cash flows? 2. Explain the difference between a companys operating cash flow and its free cash flow. 3. Briefly describe the key features of the free cash flow approach to valuation.
-
Distinguish between a direct and an indirect acquisition.
-
What is the acquisition date?
-
Distinguish between a business combination and a non-business acquisition.
Study smarter with the SolutionInn App