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Bates Corporation has completed lits first year of operation for 2 0 2 2 and you as the head accountant are preparing the final adfusting
Bates Corporation has completed lits first year of operation for and you as the head accountant are preparing the final adfusting entries so that the company's December financial statements can then be prepared. Based upon the attached trial balance, prepare the journal entries for each of the items noted. All of the company's sales are on credit. The company estimated that their bad debt expense would be of sales. Each month during this first year of operation, the company would record the estimated bad debt expense at of the month's sales. No accounts have been "written ofif" during the year on the company books. A close review of the accounts receivables identiffed two accounts that should be written off for a total of $ Record the journal entry required, if any for the writing off the $ of receivables. Yearend review of Accounts Receivable noted that a $ account receivable from Kingston Corp was rewritten on November as a Short Teum leterest Beariug Note but was not recorded in the accounting records. The $ is still included in the yearend accounts receivable balance. Interest on this note receivable is earned at an annual rate of with interest payable in quarterly installments, with interest due February May August and November Record the journal entry required, if any to properly state the note receivable and the interest on the note. Additional review of the accounts receivables was performed and each of the accounts were aged and a total allowance of doubtful accounts was determined to be $ after adfusting for the journal entries required if any under ftems and above. Record the journal entry required, if any for the recording of the allowance for doubtful accounts. Included in income tax expense is the four quarterly tax payments of $ each. A review of the income statement and tax return reveals that the company will owe an additional $ in income taxes for the year ended over and above the $ paid to the taxing authorities. Record the journal entry required, if any related to income tax expense for the company. Assume income tax expense per financial statement is the same as income tax expense per the tax returns.
Bates Corporation has completed lits first year of operation for and you as the head accountant are preparing the final adfusting entries so that the company's December financial statements can then be prepared.
Based upon the attached trial balance, prepare the journal entries for each of the items noted.
All of the company's sales are on credit. The company estimated that their bad debt expense would be of sales. Each month during this first year of operation, the company would record the estimated bad debt expense at of the month's sales. No accounts have been "written ofif" during the year on the company books. A close review of the accounts receivables identiffed two accounts that should be written off for a total of $ Record the journal entry required, if any for the writing off the $ of receivables.
Yearend review of Accounts Receivable noted that a $ account receivable from Kingston Corp was rewritten on November as a Short Teum leterest Beariug Note but was not recorded in the accounting records. The $ is still included in the yearend accounts receivable balance. Interest on this note receivable is earned at an annual rate of with interest payable in quarterly installments, with interest due February May August and November Record the journal entry required, if any to properly state the note receivable and the interest on the note.
Additional review of the accounts receivables was performed and each of the accounts were aged and a total allowance of doubtful accounts was determined to be $ after adfusting for the journal entries required if any under ftems and above. Record the journal entry required, if any for the recording of the allowance for doubtful accounts.
Included in income tax expense is the four quarterly tax payments of $ each. A review of the income statement and tax return reveals that the company will owe an additional $ in income taxes for the year ended over and above the $ paid to the taxing authorities. Record the journal entry required, if any related to income tax expense for the company. Assume income tax expense per financial statement is the same as income tax expense per the tax returns.
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