ACCT$201$ Final Project Adjusting Entries

Adjustments

$1$ Bad debt is estimated to be a

percentage of Accounts recelvable.

$27650*\mathrm{.}03$

$2$ Took out a new note for $$4,500$ on

$\frac{6}{1}\frac{?}{24},$ for new equipment.

Bookkeeper has not recorded the

note of interest

$3$ Need to bill a client for work

performed. Contract was for $1,000$

shirts at $$5$ per shirt. Shipped $650$

shirts.

$4$ Discovered when we took a physical count we had shrinkage of $$500.$

$5$ Depreciation

Building straight line for $20$ years no residual valueon original building.

New addition estimated to be for $10$ years no residual value.

$6$ Depreciation equipment

Old equipment $10\%$ of cost

New equipment $5\%$ of cost the first year

$7$ Income tax rate

$8$ Tri$-$Area inc. has $1$ employee that earn $$1,500$ each week

The company has $10$ emploees with a weekly income of $$900.$

The year ends on Tuesday.

$9$ On December $30$ of this year Tri$-$Area factored $$5,000$ of the accounts receivable

The factor will keep $10\%$ for returns to be paid in thirty days.

The discount rate is $9\%$ with recourse of $$400.$

This was not recorded due to the bookkeeper not sure how to record the entry.

Keep the receivable from factor as a separate receivable.

$10$ Contract Modification$-$Cumulative Catch$-$Up Method$-$

On October $15,2023$ Tri$-$Area Inc. entered into a cotract to sell $750$ units

for $$11,250($ $$15$ per unit$)$ toDesk Top Inc. Tri$-$Area expexted to deliver the unitss

in December and January. On December $15$ after $500$ units were delivered

reduced the price on the remaining units to $$10\mathrm{.}50$ per unit.