Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can you find the $9,000 that I'm Short? from my check figures? HELP https://www.chegg.com/homework-help/questions-and-answers/hi-wondering-could-get-help-problems-part-got-think--would-nice-confirmation-im-right-wron-q69991500?trackid=fVqiiZ0G Here's the link to the first part of the question. i

Can you find the $9,000 that I'm Short? from my check figures? HELP

https://www.chegg.com/homework-help/questions-and-answers/hi-wondering-could-get-help-problems-part-got-think--would-nice-confirmation-im-right-wron-q69991500?trackid=fVqiiZ0G

Here's the link to the first part of the question. i got answered previously. However, I'm still 9k short after doing adjusting entries

THANKS

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

image text in transcribedimage text in transcribed

B 4 January 1: Pane rents some of their extra warehouse space to a tenant for $500/mo. At the beginning of the month, the tenant pays for 18 months of rent. The tenant first occupied the property on January 1 of the current year. Total Rent Paid $9,000 January 1: Pane purchased a one year insurance policy with coverage beginning on April 1. 4 Insurance Policy $34,000 D January 9: Pane pays for the inventory purchased in transaction A. 6 E February 1: Pane makes sales of on account. 6 $400,000 Sales on account Cost of Goods Sold $20,000 F 6 March 1: Pane purchases additional inventory on account to make stained glass windows. The goods were purchased under the shipping terms of FOB destination. The contract has the terms of 1/10, n/30. Inventory Purchased $12,000 G April 1: Pane pays for the inventory purchased in transaction F. 6 H May 15: Customers return $1,300 of merchandise and received a full cash refund. The cost of this merchandise to Pane was $400. 8 9 July 1: Pane pays cash for a patent that will allow them to produce a revolutionary new window for boats and other marine vehicles called "T-Panes". $25,000 Cost of Patent Remaining legal life of patent (in years) 20 July 28: Pane issued shares of common stock 11 Number of shares 400 $1 Par Value Price Per Share $25 K 6 July 31: Pane sells window panes to customers. Some customers paid in cash, others purchased their goods on account. Pane uses the perpetual method to track their inventory. 26,000 Cash Sales Sales on account Cost of Goods Sold 145,000 9,870 L August 6: Pane purchases land with cash. At the time of purchase, Pane also had to pay for survey fees and costs to demolish a build 9 Cost of Land Demolish Building Survey Fees $345,000 $2,000 $300 M 8 November 1: Pane lends one of their employees cash in exchange for a note receivable. The employee is required to pay Pane back for the principal and interest on May 1, 2020. Principal Interest Rate Maturity Date $10,000 7% 5/1/2019 N November 15: Pane sells additional goods to customers on account. 7,8 Sales on account Cost of Goods Sold $75,000 $6,500 o December 1: Pane purchases a piece of machinery with cash that will assist in making "T-Panes" 8 Cost of Machinery Installation Fees Transportation Costs $200,000 $500 $1,000 P December 10: Pane collects a portion of their accounts receivable 8 Amount collected $38,000 a December 18: Pane sold a piece of their equipment. 9 Sale Price Equipment Historical Cost Accumulated Depreciation for this equipment $15,000 $ 60,000 $51,000 R December 31: Pane paid the IRS their 2019 income tax. 4 Income Tax Paid $2,000 S On December 31, Pane paid cash dividends of $8,000 to its shareholders. 11 T 9 The payroll information for the year is shown below. All salaries and wages were previously paid for in cash, however this activity has not been recorded on Pane's books. 8 Number of Employees Daily wages per employee Days worked in the current year $160 300 Adjusting Entries Dr. $ 6,000 AJE 1: Rent Revenue Deferred Revenue Cr. Rent Revenue $ 6,000 $ 22,667 AJE 2: Dr. Insurance Expense Insurance Expense Cr. Prepaid Insurance $ 22,667 $ $ 700 AJE 2 Dr. Interest Revenue Interest Receivable Cr. Interest Revenue $ 700 Dr. $ 11,000 AJE 3 Depreciation Accumulated Depreciation Cr. Equipment $ 11,000 Dr. $ 4,000 AJE 4 Amortization Amortization Expense Cr. Accumulated Amortization $ 4,000 $ 1,875 AJE 6 Dr. Bad Debt Expense Bad Debt Expense Cr. Allowance for doubtful accounts $ $ 1,875 Totals after adjustment Check figures: Total debits should equal total credits. $ 2,081,028 2,090,377 $ 2,081,028 2,090,377 Year-End Adjusting Entries: 1 4 Recognize rent revenue for the year. Recognize the expiration of the prepaid insurance policy. 2 4 3 Recognize the interest earned on the note receivable issued. 4,8 4 Record bad debt expense for the year, assuming uses 1.5% of accounts receivable to estimate their uncollectible accounts. 8 5 Depreciation Expense for the year is $11,000 9 6 Amortization Expense for the year is 4,000 9 B 4 January 1: Pane rents some of their extra warehouse space to a tenant for $500/mo. At the beginning of the month, the tenant pays for 18 months of rent. The tenant first occupied the property on January 1 of the current year. Total Rent Paid $9,000 January 1: Pane purchased a one year insurance policy with coverage beginning on April 1. 4 Insurance Policy $34,000 D January 9: Pane pays for the inventory purchased in transaction A. 6 E February 1: Pane makes sales of on account. 6 $400,000 Sales on account Cost of Goods Sold $20,000 F 6 March 1: Pane purchases additional inventory on account to make stained glass windows. The goods were purchased under the shipping terms of FOB destination. The contract has the terms of 1/10, n/30. Inventory Purchased $12,000 G April 1: Pane pays for the inventory purchased in transaction F. 6 H May 15: Customers return $1,300 of merchandise and received a full cash refund. The cost of this merchandise to Pane was $400. 8 9 July 1: Pane pays cash for a patent that will allow them to produce a revolutionary new window for boats and other marine vehicles called "T-Panes". $25,000 Cost of Patent Remaining legal life of patent (in years) 20 July 28: Pane issued shares of common stock 11 Number of shares 400 $1 Par Value Price Per Share $25 K 6 July 31: Pane sells window panes to customers. Some customers paid in cash, others purchased their goods on account. Pane uses the perpetual method to track their inventory. 26,000 Cash Sales Sales on account Cost of Goods Sold 145,000 9,870 L August 6: Pane purchases land with cash. At the time of purchase, Pane also had to pay for survey fees and costs to demolish a build 9 Cost of Land Demolish Building Survey Fees $345,000 $2,000 $300 M 8 November 1: Pane lends one of their employees cash in exchange for a note receivable. The employee is required to pay Pane back for the principal and interest on May 1, 2020. Principal Interest Rate Maturity Date $10,000 7% 5/1/2019 N November 15: Pane sells additional goods to customers on account. 7,8 Sales on account Cost of Goods Sold $75,000 $6,500 o December 1: Pane purchases a piece of machinery with cash that will assist in making "T-Panes" 8 Cost of Machinery Installation Fees Transportation Costs $200,000 $500 $1,000 P December 10: Pane collects a portion of their accounts receivable 8 Amount collected $38,000 a December 18: Pane sold a piece of their equipment. 9 Sale Price Equipment Historical Cost Accumulated Depreciation for this equipment $15,000 $ 60,000 $51,000 R December 31: Pane paid the IRS their 2019 income tax. 4 Income Tax Paid $2,000 S On December 31, Pane paid cash dividends of $8,000 to its shareholders. 11 T 9 The payroll information for the year is shown below. All salaries and wages were previously paid for in cash, however this activity has not been recorded on Pane's books. 8 Number of Employees Daily wages per employee Days worked in the current year $160 300 Adjusting Entries Dr. $ 6,000 AJE 1: Rent Revenue Deferred Revenue Cr. Rent Revenue $ 6,000 $ 22,667 AJE 2: Dr. Insurance Expense Insurance Expense Cr. Prepaid Insurance $ 22,667 $ $ 700 AJE 2 Dr. Interest Revenue Interest Receivable Cr. Interest Revenue $ 700 Dr. $ 11,000 AJE 3 Depreciation Accumulated Depreciation Cr. Equipment $ 11,000 Dr. $ 4,000 AJE 4 Amortization Amortization Expense Cr. Accumulated Amortization $ 4,000 $ 1,875 AJE 6 Dr. Bad Debt Expense Bad Debt Expense Cr. Allowance for doubtful accounts $ $ 1,875 Totals after adjustment Check figures: Total debits should equal total credits. $ 2,081,028 2,090,377 $ 2,081,028 2,090,377 Year-End Adjusting Entries: 1 4 Recognize rent revenue for the year. Recognize the expiration of the prepaid insurance policy. 2 4 3 Recognize the interest earned on the note receivable issued. 4,8 4 Record bad debt expense for the year, assuming uses 1.5% of accounts receivable to estimate their uncollectible accounts. 8 5 Depreciation Expense for the year is $11,000 9 6 Amortization Expense for the year is 4,000 9

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

The ASQ Auditing Handbook

Authors: J. P. Russell

3rd Edition

0873896661, 978-0873896665

More Books

Students also viewed these Accounting questions