Your task is to record selected transactions for Cottrell Corporation for 2021 and prepares year-end financial statements. Attached is a chart of accounts and a preliminary trial balance for Cottrell. You can assume all transactions already recorded by Cottrell have been recorded accurately. For the 8 items listed below, assume no journal entries have been made for 2021 unless you are told otherwise. You may assume all the balances on the preliminary trial balance are correct as a starting point. As you record transactions, you will need to use accounts that are not listed on the preliminary trial balance but be sure you use accounts included in the Chart of Accounts. Assume all transactions and all amounts are material. Cottrell uses the effective interest method to amortize any discounts or premiums on investments and bonds payable. The company uses straight-line depreciation for plant assets. The company policy is to record depreciation on any plant assets acquired or disposed of to the nearest month. For intangibles, one full year of amortization is recorded in the year of acquisition and no amortization in the year of disposal.

Answer rating: 100% (QA)

we resolved a substantial portion of our major legacy matters putting behind us issues that have to ... View the full answer