The unadjusted trial balance is included below. Please use the following journal entries to create an adjusted
Fantastic news! We've Found the answer you've been seeking!
Question:
The unadjusted trial balance is included below. Please use the following journal entries to create an adjusted trial balance. Additionally, some accounts will need to be added as adjusting entries are recorded. Information needed to record the remaining entries follow this unadjusted trial balance.
Transcribed Image Text:
Transactions that occurred on December 31 that have not been recorded: a. The Marketable Securities shown on the trial balance represent 2,000 shares of another company's stock that were purchased on December 5th at $10 per share. On December 31, 1,500 of these shares were sold at the December 31 closing market price of $12 per share. No entries have been made since the securities were acquired. b. Received cash dividends from the Marketable Securities on December totaling $150. c. A sales return that occurred on December 31 needs to be recorded. The sales price was $1,200 and the cost of goods sold was $450. All sales are on account. d. Brent was able to get a special New Year's Eve deal on a trade of the company car. The new car price was $35,000. Brent was able to get a $10,000 trade-in allowance on the old car. We paid cash for the difference. The trade has not been recorded. The effective date of the trade was December 31. Information related to depreciation of the old car is listed below in item (6). Other information related to adjusting entries: 1. Information for the last pay period of the year is below. Cash will not change hands for this pay period until January of 2020. The salaries, related payroll tax expenses, and related employee benefit expenses have been incurred but not yet recorded. Gross Pay = $11,500 Federal Income Tax withholding rate = 20% FICA rate for employees and employers = 8% for each Medical Insurance Premiums withheld from employees = $500 Employer's share of Medical Insurance Premiums = $400 401K withheld from employees S575 Employer's match on 401K = $345 State unemployment taxes for the pay period = $300 Federal unemployment taxes for the pay period = $100 %3D Fat Tire maintains a separate account for each payroll related liability on its Balance Sheet. Do not worry about any wage base limits. 2. The Prepaid Insurance balance represents a $36,000 one-year policy that began on July 1. The company adjusts any prepaid items on a monthly basis. 3. Fat Tire decided to sublease some of its rental space. On October 1, the company received $4,500 in advance from a neighboring business for 3 month's rent. The lease period began on October 1. Fat Tire adjusts rent related accounts on a monthly basis. Transactions that occurred on December 31 that have not been recorded: a. The Marketable Securities shown on the trial balance represent 2,000 shares of another company's stock that were purchased on December 5th at $10 per share. On December 31, 1,500 of these shares were sold at the December 31 closing market price of $12 per share. No entries have been made since the securities were acquired. b. Received cash dividends from the Marketable Securities on December totaling $150. c. A sales return that occurred on December 31 needs to be recorded. The sales price was $1,200 and the cost of goods sold was $450. All sales are on account. d. Brent was able to get a special New Year's Eve deal on a trade of the company car. The new car price was $35,000. Brent was able to get a $10,000 trade-in allowance on the old car. We paid cash for the difference. The trade has not been recorded. The effective date of the trade was December 31. Information related to depreciation of the old car is listed below in item (6). Other information related to adjusting entries: 1. Information for the last pay period of the year is below. Cash will not change hands for this pay period until January of 2020. The salaries, related payroll tax expenses, and related employee benefit expenses have been incurred but not yet recorded. Gross Pay = $11,500 Federal Income Tax withholding rate = 20% FICA rate for employees and employers = 8% for each Medical Insurance Premiums withheld from employees = $500 Employer's share of Medical Insurance Premiums = $400 401K withheld from employees S575 Employer's match on 401K = $345 State unemployment taxes for the pay period = $300 Federal unemployment taxes for the pay period = $100 %3D Fat Tire maintains a separate account for each payroll related liability on its Balance Sheet. Do not worry about any wage base limits. 2. The Prepaid Insurance balance represents a $36,000 one-year policy that began on July 1. The company adjusts any prepaid items on a monthly basis. 3. Fat Tire decided to sublease some of its rental space. On October 1, the company received $4,500 in advance from a neighboring business for 3 month's rent. The lease period began on October 1. Fat Tire adjusts rent related accounts on a monthly basis.
Expert Answer:
Answer rating: 100% (QA)
1 Journal entries required on December 31 a Sale of securities Debit Cash 3000 Credit Securities 300... View the full answer
Related Book For
Financial and Managerial Accounting
ISBN: 978-0538480895
11th Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
Posted Date:
Students also viewed these accounting questions
-
On December 31, the unadjusted trial balance of Masters Employment Agency shows the following selected data: Analysis shows that adjusting entries are required to (1) Accrue $6,900 of service...
-
The following information is from the unadjusted trial balance for Journey's Knd Company prepared at October 31, 2014, the end of the fiscal year: Rent and salaries expense are equally divided...
-
On December 31, the unadjusted trial balance of Masterson Employment Agency shows the following selected data: Accounts receivable ............. $24,000 ................... Cash .......... $ 7,600...
-
Under what circumstances should derived associations be used?
-
A chemist decomposes 1.006 g of NaHCO3 and obtains 0.0334 g of Na2CO3. What are the theoretical yield and the actual yield? 2NaHCO3(s) ( Na2CO3(s) + H2O() + CO2(g)
-
A particular waveform has the pole-zero diagram shown in Figure P9-17. The waveform is known to have a final voltage of \(10 \mathrm{~V}\). First find the transform of the waveform, and then find an...
-
How would the control configuration for the vinyl-chloride process in Figure 20.18 change if the primary control objective is to provide on-demand vinyl-chloride product? Figure 20.18:- Ethylene...
-
A man wants to determine whether or not to invest $1000 in a friend's speculative venture. He will do so if he thinks he can get his money back in one year. He believes the probabilities of the...
-
The company has just announced the EPS for last year was $1.4. The company maintains a dividend payout ratio of 0.75. Assume the company's cost of equity is 12%, and dividends are expected to grow at...
-
Comparative statements of shareholders? equity for Anaconda International Corporation were reported as follows for the fiscal years ending December 31, 2021, 2022, and 2023. Required: 1. Infer from...
-
What would be the advantages for a university computer lab to install thin clients rather than standard desktop personal computers? Explain any 4. Identify and explain any 4 disadvantages?
-
If you had a choice between your citys (or the nearest large citys) hosting either a sports franchise or a World Cup, which would be more beneficial to your city? Why?
-
Benzene and ethanol (e) form azeotropic mixtures. Prepare a y-x and a P-x-y diagram for the benzene-ethanol system at 45C assuming the mixture is ideal. Compare the results with the experimental data...
-
Suppose your city (or the nearest city housing an NBA franchise) is trying to decide where to build a new arena. Think of two or three possible sites and describe the pros and cons of each. Which...
-
Are the stadiums or arenas of your local sports franchises located downtown or on the edge of town? Do you think that is the best place for them? Why or why not?
-
Why would a Super Bowl played in Detroit probably have more of an impact than a Super Bowl played in Miami, even if both were to draw the same amount of fans? Why would a Super Bowl at Ford Field in...
-
3. Imagine an ending balance in AR at December 31, 2016, of $100,000, and imagine the auditor is looking at subsequent cash receipts between January and March related to these receivables. a....
-
What is the difference between direct materials and indirect materials?
-
If merchandise inventory is being valued at cost and the price level is decreasing, which of the three methods of costing-FIFO, LIFO, or average cost-will yield (a) The highest inventory cost, (b)...
-
Why are closing entries required at the end of an accounting period?
-
An $800,000 bond issue on which there is an unamortized discount of $60,000 is redeemed for $760,000. Journalize the redemption of the bonds.
-
Using the potential theory obtain the damping for a cycle of (i) plunge, (ii) pitch oscillations.
-
Consider a delta wing with sweep angle \(\Lambda\). Show that the expressions 8.11 and 8.12 give the same lift line slope for the delta wing. Eq 8.11 Eq 8.12 = CD CD+CL tan
-
Using the Polhamus theory obtain the drag polar for a delta wing with sweep angle \(75^{\circ}\).
Study smarter with the SolutionInn App