The unadjusted trial balance of the Manufacturing Equitable at December 31, 2021, the end of its...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The unadjusted trial balance of the Manufacturing Equitable at December 31, 2021, the end of its fiscal year, included the following account balances. Manufacturing's 2021 financial statements were issued on April 1, 2022. Accounts receivable Accounts payable 9% notes, payable to bank Mortgage note payable $ 98,000 38,800 638,000 1,290,000 Other information: a. The bank notes, issued August 1, 2021, are due on July 31, 2022, and pay interest at a rate of 9%, payable at maturity. b. The mortgage note is due on March 1, 2022. Interest at 8% has been paid up to December 31 (assume 8% is a realistic rate). Manufacturing intended at December 31, 2021, to refinance the note on its due date with a new 10-year mortgage note. In fact, on March 1, Manufacturing paid $275,000 in cash on the principal balance and refinanced the remaining $1,015,000. c. Included in the accounts receivable balance at December 31, 2021, were two subsidiary accounts that had been overpaid and had credit balances totaling $16,500. The accounts were of two major customers who were expected to order more merchandise from Manufacturing and apply the overpayments to those future purchases. d. On November 1, 2021, Manufacturing rented a portion of its factory to a tenant for $38,400 per year, payable in advance. The payment for the 12 months ended October 31, 2022, was received as required and was credited to rent revenue. Required: 1. Prepare any necessary adjusting journal entries at December 31, 2021, pertaining to each item of other information (a-d). 2. Prepare the current and long-term liability sections of the December 31, 2021, balance sheet. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare any necessary adjusting journal entries at December 31, 2021, pertaining to each item of other information (a-d). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 > The bank notes, issued August 1, 2021, are due on July 31, 2022, and pay interest at a rate of 9%, payable at maturity. The mortgage note is due on March 1, 2022. Interest at 8% has been paid up to December 31 (assume 8% is a realistic rate). Manufacturing intended at December 31, 2021, to refinance the note on its due date with a new 10-year mortgage note. In fact, on March 1, Manufacturing paid $275,000 in cash on the principal balance and refinanced the remaining $1,015,000. 2 paid up led at 10-year cash on Credit 3 Included in the accounts receivable balance at December 31, 2021, were two subsidiary accounts that had been overpaid and had credit balances totaling $16,500. The accounts were of two major customers who were expected to order more merchandise from Manufacturing and apply the overpayments to those future purchases. On November 1, 2021, Manufacturing rented a portion of its factory to a tenant for $38,400 per year, payable in advance. The payment for the 12 months ended October 31, 2022, was received as required and was credited to rent revenue. Prepare the current and long-term liability sections of the December 31, 2021, balance sheet. Manufacturing Equitable Balance Sheet (partial) At December 31, 2021 Current liabilities: Total current liabilities Long-term liabilities: Total Long-term Liabilities Total Liabilities $ %24 The unadjusted trial balance of the Manufacturing Equitable at December 31, 2021, the end of its fiscal year, included the following account balances. Manufacturing's 2021 financial statements were issued on April 1, 2022. Accounts receivable Accounts payable 9% notes, payable to bank Mortgage note payable $ 98,000 38,800 638,000 1,290,000 Other information: a. The bank notes, issued August 1, 2021, are due on July 31, 2022, and pay interest at a rate of 9%, payable at maturity. b. The mortgage note is due on March 1, 2022. Interest at 8% has been paid up to December 31 (assume 8% is a realistic rate). Manufacturing intended at December 31, 2021, to refinance the note on its due date with a new 10-year mortgage note. In fact, on March 1, Manufacturing paid $275,000 in cash on the principal balance and refinanced the remaining $1,015,000. c. Included in the accounts receivable balance at December 31, 2021, were two subsidiary accounts that had been overpaid and had credit balances totaling $16,500. The accounts were of two major customers who were expected to order more merchandise from Manufacturing and apply the overpayments to those future purchases. d. On November 1, 2021, Manufacturing rented a portion of its factory to a tenant for $38,400 per year, payable in advance. The payment for the 12 months ended October 31, 2022, was received as required and was credited to rent revenue. Required: 1. Prepare any necessary adjusting journal entries at December 31, 2021, pertaining to each item of other information (a-d). 2. Prepare the current and long-term liability sections of the December 31, 2021, balance sheet. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare any necessary adjusting journal entries at December 31, 2021, pertaining to each item of other information (a-d). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 > The bank notes, issued August 1, 2021, are due on July 31, 2022, and pay interest at a rate of 9%, payable at maturity. The mortgage note is due on March 1, 2022. Interest at 8% has been paid up to December 31 (assume 8% is a realistic rate). Manufacturing intended at December 31, 2021, to refinance the note on its due date with a new 10-year mortgage note. In fact, on March 1, Manufacturing paid $275,000 in cash on the principal balance and refinanced the remaining $1,015,000. 2 paid up led at 10-year cash on Credit 3 Included in the accounts receivable balance at December 31, 2021, were two subsidiary accounts that had been overpaid and had credit balances totaling $16,500. The accounts were of two major customers who were expected to order more merchandise from Manufacturing and apply the overpayments to those future purchases. On November 1, 2021, Manufacturing rented a portion of its factory to a tenant for $38,400 per year, payable in advance. The payment for the 12 months ended October 31, 2022, was received as required and was credited to rent revenue. Prepare the current and long-term liability sections of the December 31, 2021, balance sheet. Manufacturing Equitable Balance Sheet (partial) At December 31, 2021 Current liabilities: Total current liabilities Long-term liabilities: Total Long-term Liabilities Total Liabilities $ %24
Expert Answer:
Answer rating: 100% (QA)
Part 1 No Transaction General journal Debit Credit 1 a ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0078025839
9th edition
Authors: J. David Spiceland, James Sepe , Mark Nelson , Wayne Thomas
Posted Date:
Students also viewed these accounting questions
-
The unadjusted trial balance of the Manufacturing Equitable at December 31, 2018, the end of its fiscal year, included the following account balances. Manufacturing's 2018 financial statements were...
-
The unadjusted trial balance of the Manufacturing Equitable at December 31, 2021, the end of its fiscal year, included the following account balances. Manufacturings 2021 financial statements were...
-
The unadjusted trial balance of the Manufacturing Equitable at December 31, 2011, the end of its fiscal year, included the following account balances. Manufacturings 2011 financial statements were...
-
Use the approximations obtained in Exercise 3 to approximate the following integrals, and compare your results to the actual values. a. b. c. d. (cos --2 sin ) dr (x cos x2 + er cos ex) dx
-
Write the structural formulas of two tripeptides formed from the reaction of L-tryptophan, L-glutamic acid, and L-tyrosine. How many tripeptides are possible?
-
A, B and C are partners sharing profits and losses in the ratio of 3:2:1. Their Balance Sheet on 31.12.2017 was : C retires on that date subject to the following conditions: (i) Goodwill of the firm...
-
Techmart Corporation is a young start-up firm that produces components for high-resolution televisions. During the last two years, sales have grown dramatically. Currently, Techmart is experiencing a...
-
You are planning for retirement and must decide whether to purchase only your employers stock for your 401(k) or, instead, to buy a mutual fund that holds shares in the 500 largest companies in the...
-
Assuming interest 2%. Corie future value would be $94,788.21, and Devon's future value would be $77,921.99. This is not a good strategy because Devon is investing the double amount but in just half...
-
Today is May 17, 2023, and you, CPA, are a Senior Tax Associate at Borden & Laurier LLP. Sylvie Condurache, Tax Manager, has called you into her office to discuss a long-time client: "I just got out...
-
The total cost of producing a product is represented by the equation: 0.003Q2 + 4Q+3, where Q is the number of units per year. If revenue is represented by 20Q, at what value of annual production...
-
Why do companies issue share dividends?
-
What responsibility does the auditor have for communicating internal control structure related matters?
-
What factors affect the size of a companys cash dividend?
-
a. List five steps in completing preliminary planning before specifying the substantive tests to be included in an audit program, b. List six steps in the general framework for specifying substantive...
-
What is the relationship between the acceptable level of detection risk and the extent of substantive tests?
-
Johanna is grain farmer in Grand Island, NE. Last fall, she decided to sell her corn before harvest for delivery in March 2023. On August 1, 2022 she sold her grain using futures contracts for March...
-
The Ranch 888 Noodle Company sells two types of dried noodles:ramen, at $6.50 per box, and chow fun, at $7.70 per box. So farthis year, the company has sold a total of 110,096 boxes ofnoodles,...
-
When using the indirect method of determining net cash flows from operating activities, how is bad debt expense reported? Why? What other expenses are reported in a like manner?
-
Access the FASB's Codification Research System at the FASB website (www.fasb.org). Determine the specific citation for accounting for each of the following items: 1. The disclosure required in the...
-
The financial community in the United States has become increasingly concerned with the quality of reported company earnings. Required: 1. Define the term earnings quality. 2. Explain the distinction...
-
On January 1, 2018, Ranier, Inc., issued \(\$ 300,000\) of ten percent, 15 -year bonds for \(\$ 351,876\), yielding an effective interest rate of eight percent. Semiannual interest is payable on June...
-
The Peoples National Bank raised capital through the sale of \(\$ 100\) million face value of four percent coupon rate, ten-year bonds. The bonds paid interest semiannually and were sold at a time...
-
The financial statements for the Columbia Sportswear Company can be found in Appendix A at the end of this book. Required Answer the following questions: a. How much were Columbia's current...
Study smarter with the SolutionInn App