Lilley & Taylor, partners in an accounting practice, completed the following selected transactions: 2016 Oct. 31 Performed
Question:
Lilley & Taylor, partners in an accounting practice, completed the following selected transactions:
2016
Oct. 31 Performed service for Berger Manufacturing Inc., receiving a $30,000, three-month, 5% note.
Dec. 31 Made an adjusting entry to accrue interest on the Berger note.
2017
Jan. 31 Collected the Berger note.
Feb. 18 Received a 90-day, 8%, $10,000 note from Emerson Ltd., on account.
19 Sold the Emerson note to a financial institution, receiving cash of $9,700.
Nov. 11 Loaned $20,000 cash to Diaz Insurance Agency, receiving a 90-day, 9% note.
Dec. 31 Accrued the interest on the Diaz note.
Requirements
1. Record the transactions in Lilley & Taylor's journal. Round all amounts to the nearest dollar. Explanations are not required.
2. Show what Lilley & Taylor will report on its comparative classified balance sheet at
December 31, 2017, and December 31, 2016.
Balance SheetBalance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
Req 1 Req 2 December 31 BALANCE SHEET 2017 2016 Current a...View the full answer
Financial Accounting
ISBN: 978-0134564142
6th Canadian edition
Authors: Walter Jr. Harrison, Charles T. Horngren, C. William Thomas, Greg Berberich, Catherine Seguin
