The Fudge Factory (FF) has been in business for eight years. During that time, FF has...
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The Fudge Factory (FF) has been in business for eight years. During that time, FF has developed more than two dozen different varieties of fudge. The Company's post-closing trial balance as of December 31, 2022 is given below. DR CR Account $54,600 Cash Accounts receivable 14,300 Production supplies 11,050 Prepaid insurance 1,700 7,800 Prepaid rent 42,900 Equipment Accumulated depreciation $11,600 Accounts payable 14,400 Interest payable 0 Salaries payable 1,950 Unearned fees 10,400 Long-term notes payable 0 Common stock 28,600 65.400 $132,350 $132,350 Retained earnings FF had the following transactions during 2023 (not in date order): a. FF collected $33,000 on accounts receivable throughout the year. b. FF paid cash dividends to shareholders totaling $4,550. c. On August 1 FF paid its $23,400 annual insurance premium. Record this payment as Prepaid Insurance. d. During the year, FF created a new line of white chocolate fudge for weddings. This created a spike in overall sales with total revenue reaching $91,000 in fees earned. $35,500 was collected in cash, with the remainder being sold on account. The Fudge Factory (FF) has been in business for eight years. During that time, FF has developed more than two dozen different varieties of fudge. The Company's post-closing trial balance as of December 31, 2022 is given below. DR CR Account $54,600 Cash Accounts receivable 14,300 Production supplies 11,050 Prepaid insurance 1,700 7,800 Prepaid rent 42,900 Equipment Accumulated depreciation $11,600 Accounts payable 14,400 Interest payable 0 Salaries payable 1,950 Unearned fees 10,400 Long-term notes payable 0 Common stock 28,600 65.400 $132,350 $132,350 Retained earnings FF had the following transactions during 2023 (not in date order): a. FF collected $33,000 on accounts receivable throughout the year. b. FF paid cash dividends to shareholders totaling $4,550. c. On August 1 FF paid its $23,400 annual insurance premium. Record this payment as Prepaid Insurance. d. During the year, FF created a new line of white chocolate fudge for weddings. This created a spike in overall sales with total revenue reaching $91,000 in fees earned. $35,500 was collected in cash, with the remainder being sold on account.
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To record the transactions for the Fudge Factory FF during 2023 we will update the relevant accounts ... View the full answer
Related Book For
Auditing and Assurance services an integrated approach
ISBN: 978-0132575959
14th Edition
Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley
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