Data for adjustments at December 31, 2015, are listed below and the unadjusted trial balance at the

Question:

Data for adjustments at December 31, 2015, are listed below and the unadjusted trial balance at the top of the following page.

(a) Taipei International uses a perpetual inventory system.

(b) An analysis of Accounts Receivable reveals that the appropriate year-end balance in Allowance for Bad Debts is $750.

(d) A recheck of the inventory count revealed that goods costing $5,600 were wrongly excluded from ending inventory. The goods in question were not shipped until January 3, 2016. A related receivable for $8,200 was also mistakenly recorded.

(e) Interest on the note payable has not been accrued. The note was issued on March 1, 2015, and the interest rate is 12%.

(f) The balance in Insurance Expense represents $3,000 that was paid for a one-year policy on October 1. The policy went into effect on October 1.

(g) Dividends totaling $7,800 were declared on December 25. The dividends will not be paid until January 15, 2016. No entry was made.

Instructions:

1. Journalize the necessary adjusting entries. (Ignore income tax effects.)

2. Journalize the necessary closing entries.

3. Prepare a post-closing trial balance.

4. Can a company pay dividends in a year in which it has a net loss? Can a company owe income taxes in a year in which it has a net loss?

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...