Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ACCT 2 0 1 Final Project Part 1 ( Adjusting Entries ) Additional information 1 . Equipment was purchased with cash. 1 4 , 0

ACCT201 Final Project Part 1(Adjusting Entries)
Additional information
1. Equipment was purchased with cash. 14,000
2. Equipment costing was sold 4,500
3. Accumulated depreciation 3,500
4. Gain on sale 250
5. Cash dividend declared 4,800
6. All other charges were for cash
Add more adjustments
Requirements:
1. Make the appropriate adjusting entries
2. From the adjusted trail balance do the required financial statements:
MultiStep Income Statement
Statement of Retained Earnings
Classified Balance Sheet
Statement of Cash Flows (either method)
3. Prepare closing entries
4. Prepare the post closing trial balance
5. Prepare reversing entries.
Adjustments:
1- Bad debt is estimated to be a percentage of Accounts Receivable. 3.0%
27650*.03830
2-Took out a new note for $4,500 on 6/1/24, for new equipment.
Bookkeeper has not recorded the note or interest. 8.0%
3- Need to bill a client for work performed. Contract was for $1,00 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 value on 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 30%
8- Tri-Area Inc. has 1 employee that earns $1,500 each week.
The company has 10 employees with a weekly income of $900.
The year ends on Tuesday.
9- On December 30th of this year Tri-Area factored $5,000 of the accounts receivable.
The factor will keep 10% for returns to be paid in 30 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 the factor as a seperate receivable.
10- Contract Modification- Cummulative Catch-Up Method-
On October 15,2023 Tri-Area Inc. entered into a contract to sell 750 units for $11,250($15 per shirt) to Desk Top Inc. Tri-Area expected to deliver the units in December and January. On Decemeber 15th after 500 units were delivered they reduced the price on the remaining units to $10.50 per unit.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

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

Accounting What The Numbers Mean

Authors: David Marshall, Wayne McManus, Daniel Viele

8th Edition

0073379417, 978-0073379418

More Books

Students also viewed these Accounting questions