Answered step by step
Verified Expert Solution
Question
1 Approved Answer
$300,000 in sales on account had not been recorded but were shipped FOB Shipping Point on December 31. The cost of this inventory was $140,000.
- $300,000 in sales on account had not been recorded but were shipped FOB Shipping Point on December 31. The cost of this inventory was $140,000. Bruce and Emmett use a perpetual inventory system.
- Employees are allowed to carry over up to 10 days of earned vacation days per year up to 40 days. Employees earn an average of $150 per day. A total of 500 earned vacation days will be carried over to 2020. It is probable that the employees will take the vacation days.
- Accrued wages at December 31, 2019 amount to $50,000.
- You discover that a product sale was made and recorded in December for $50,000; the product had not yet been shipped. The cost of the product was $24,000.
- The Prepaid Expense account balance includes the $24,000 cost of a two year insurance policy purchased on April 1, 2019. (Prepaid Expense was debited for $24,000 on April 1, 2019)
- Depreciation & Amortization expense for the year is $150,000
- Interest expense accrued on its long-term liabilities is $35,000.
- A dividend of $40,000 was declared on December 16, to be paid on January 15, 2020
- It is estimated that 5% of accounts receivable will be uncollectable.
- Income tax expense is 30% of income before income tax.
INSTRUCTIONS:
- Record the adjusting journal entries
- Compute the adjusted trial balance amounts
- Prepare in good form:
- Multiple Step Income Statement with an other gains and losses section
- Balance Sheet
- Retained Earnings Statement
- Compute the following ratios: Current Ratio, Profit Margin on Sales, Debt to Assets, Earnings per Share, and Book Value per share
- Record Closing Entries
-
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started