[Solved] 6 Sept. 6, 2013 Tucker Boats purchased bo

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 09, 2024

6 Sept. 6, 2013 Tucker Boats purchased boat moving equipment, office furniture, and boat repair machinery. Tucker Boats paid $6,880 in cash and signed a

Sept. 6, 2013

Tucker Boats purchased boat moving equipment, office furniture, and boat repair machinery. Tucker Boats paid $6,880 in cash and signed a four-year, 9.6%, $20,000 installment note payable to First National Bank. Equal monthly principal and interest payments of $503.42 are due the 5th of each month, beginning October 6. (The note assumes a 360-day year and 30 days of interest charged for each full month. Months with 31 days accrue only 30 days of interest, but so does September. The date the loan is signed bears interest. Interest is accrued to the nearest penny.)

Adjustment information as of September 30, 2013 not already given in original transactions:

1.Joe was very conscientious in checking his customers' credit history. However, while at the Nevada State Boat Show, he learned that it is customary within the pleasure boating industry for retail boat sales to suffer bad debt losses equal to 5% of credit sales. Joe decides that it is prudent to use the 5% industry-wide standard until he has more experience with his own business and customers. Round estimate to the nearest dollar.

2.As a control measure, Joe counts his inventory of skiing and fishing accessories at 9/30/2013. He determines that the cost of this merchandise on hand is $1,140.

3.Joe counts his Supplies after the close of business on the last day of the month and determines the cost of unused supplies to be $262.

4.Joe estimates that his office furniture and boat related equipment will last eight years with no salvage. Fixed assets purchased in the first half of the month are depreciated for the entire month, while fixed assets purchased in the last half of the month are not depreciated until the second month. Depreciation is rounded to the nearest dollar.

5.Henry worked 20 days during September and did not work any overtime. Joe gets a monthly salary of $3,000.

6.On October 4, Tucker Boats received a $357 invoice from Desert Gas and Electric Company for utilities consumed during September.

A1	609	Doubtful Accounts expense		186
	112		Dividends		186
		to record estimate for bad debts ($3729 x .05)

A2	502	Cost of Goods Sold - Accessory Sales		43
	122		Boat Accessory Inventory		43
		to reconcile physical inventory to GL ($1183-1140)

A3	602	Supplies Expenses		498
	131		Supplies		498
		to record supplies used during the month ($760-262)

A4	605	Depreciation Expense		280
	142		Accumulated Depreciation		280


A5	601	Salaries Expense		3,000
	202		Accrued Salaries Payable		3,000


A6	606	Utilities Expense		357
	207		Other Accrued Expenses Payable		357


A7	603	Insurance Expense		183
	132		Prepaid Insurance		183


A8	608	Interest Expense		?
	203		Acrued Interest Payable		?


A9	210	Notes Payable
	206		Current Maturities of long-term Debt

Date:

Adjustments

EOM Closing Entries

Account

Account Name

Ending Balance

Adjusted Balance

Ending Balance

101

Cash

95,399

111

Accounts Receivable

3,729

112

Allowance for doubtful accounts

186

121

Boat Inventory

20,725

122

Boat Accessory Inventory

1,183

131

Supplies

760

132

Prepaid Insurance

2,196

133

Prepaid Rent

141

Store, Office, & Boat Equipment

26,880

142

Accumulated depreciation

201

Accounts Payable

22,057

202

Accrued Salaries Payable

203

Accrued Interest Payable

204

Unearned Revenue

580

205

Dividends Payable

1,500

206

Current Maturities of long-term debt

207

Other Accrued expenses payable

210

Notes Payables

20,000

301

Common Stock - (no par)

99,100

311

Retained Earnings

1,500

401

Boat Sales

18,999

402

Accessory Sales

2,709

403

Boat Repair Revenue

4,304

501

Cost of Goods Sold - Boat Sales

12,050

502

Cost of Goods Sold - Accessory Sales

1,767

601

Salaries Expenses

602

Supplies Expenses

603

Insurance Expenses

604

Rent Expense

2,400

605

Depreciation expense

606

Utilities expense

607

Advertising expense

660

608

Interest expense

609

Doubtful Accounts expense

Enter an appropriate cell formula in the yellow marked cells

169,249

for totaling numbers in each column.

169,249

11,280

174,805

26,012

150,148

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

Recommended Textbook for

Environmental And Safety Auditing Program Strategies For Legal International And Financial Issues

Authors: Unhee Kim, John F. Falkenbury, Timothy A. Wilkins, Ralph Rhodes, Richard J. Satterfield

1st Edition

★★★★★

1. How do definitions of culture influence peoples perspectives on intercultural communication?

Answered: 1 week ago

Previous Question Next Question