Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cardon's Boat Yard Inc. repairs, stores, and cleans boats for customers. It is completing the accounting process for the year just ended on November 30,

image text in transcribed

image text in transcribed

image text in transcribed

Cardon's Boat Yard Inc. repairs, stores, and cleans boats for customers. It is completing the accounting process for the year just ended on November 30, 2018. The transactions during 2018 have been journalized and posted. The following data with respect to adjusting entries are available: a. Cardon's winterized (cleaned and covered) three boats for customers at the end of November, but did not prepare the bill of $2,700 for the service it provided until December b. On October 1. 2018. Cardon's paid $1.200 to the local newspaper for an advertisement to run every Thursday for 12 weeks. All ads have been run except for three Thursdays in December to complete the 12-week contract. c. On April 1, 2018. Cardon's borrowed $300.000 at an annual interest rate of 4 percent to expand its boat storage facility. The loan requires Cardon's to pay the interest quarterly until the note is repaid in three years. Cardon's paid quarterly interest on July 1 and October 1, 2018. d. The Kwan family paid Cardon's $4.500 on November 1. 2018, to store its sailboat for the winter until May 1, 2019. Cardon's credited the full amount to deferred storage revenue on November 1. e. Cardon's used boat-lifting equipment that cost $220.000: the estimated depreciation for fiscal year 2018 is $22,000. f. Boat repair supplies on hand at December 1, 2017, totalled $16.500. Repair supplies purchased and debited to Supplies Inventory during the year amounted to $46,000. The year-end inventory count showed $12,400 of the supplies remaining on hand. 9. Wages earned by employees during November 2018. unpaid and unrecorded at November 30, 2018. amounted to $3.800. The next payroll date will be December 5. 2018. Required: 1. Identify each of these transactions as a deferred revenue, a deferred expense, an accrued revenue, or an accrued expense. b. C. d. f. ( 2. Prepare for each situation the adjusting entry that should be recorded for Cardon's at November 30, 2018. (Do not round Intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" In the first account field.) View transaction list Journal entry worksheet

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

Integrated Reporting And Audit Quality An Empirical Analysis In The European Setting

Authors: Chiara Demartini, Sara Trucco

1st Edition

3319488252, 9783319488257

More Books

Students also viewed these Accounting questions

Question

In the United States, emotions are associated with the heart.

Answered: 1 week ago

Question

Know why employees turn to unions

Answered: 1 week ago

Question

Understand the process of effective succession planning

Answered: 1 week ago

Question

Understand the history of unionization

Answered: 1 week ago