Dresser Company Balance Sheet December 31, 2018 $ $ Assets: Current Assets: Cash Accounts Receivable Less Allowance for Doubtful Accounts Inventory ** Prepaid Insurance Supplies Total Current Assets 10,200 12,480 (6,250) 12,620 2,000 410 31,460 Liabilities and Stockholders' Equity: Current Liabilities: Accounts Payable Interest Payable Salary and Wages Payable Total Current Liabilities 7,600 2,000 200 9,800 $ Long Term Liabilities: Bonds Payable, 8%, 10 year *** $ $ 50,000 $ Total Liabilities $ 59,800 Property, Plant and Equipment: Building Less Accumulated Depreciation Equipment Less Accumulated Depreciation Total Property, Plant and Equipment 100,000 (30,000) 60,000 (35,855) 94,145 Stockholders' Equity: Common Stock Retained Earnings Total Stockholders' Equity $ $ 55,000 10,805 $ 65,805 Total Assets $ 125,605 Total Liabilities and Stockholders' Equity $ 125,605 *** Interest payable Jan. 1 and July 1 **Inventory balance is: 5000 units at $1.60 each 2800 units at $1.65 each Total Inventory $ 8,000 4,620 12,620 $ Journal Entries Credit JE # Account Names 1 Interest Payable Cash Debit 2,000 2,000 2 Salaries & Wages Salaries & Wages Payable 550 200 Format Cash 750 52,000 3 Accounts Receivable Sales Revenue 52,000 1,200 4 Supplies Accounts Payable 1,200 5,100 5 Inventory Accounts Payable 5,100 39,200 6 Accounts Receivable Inventory Sales 39,200 5,700 7 Allowances For Doubtful Debts Accounts Receivable 5,700 2,000 8 Interest Expense Cash 2,000 2,580 9 Inventory Accounts Payable 2,580 1,000 1,000 10 Accounts Receivable Cash Accounts Receivable Allowances For Doubtful Debts 1,000 1,000 64,000 11 Salaries & Wage Expense Cash 64,000 7,200 12 Prepaid Insurance Cash 7,200 37,500 13 Cash Inventory Sold 37,500 98,900 14 Cash Accounts Receivable 98,900 6,650 15 Inventory Accounts Payable 6,650 16 Accounts Payable 12,300 Cash 12,300 8,700 17 Cash Sales Revenue 8,700 18 Selling Expenses Administrative Expenses Cash 1,800 2,650 4,450 4,000 19 Dividend Cash 4,000 20 6% Notes Receivable Interest Revenue Sales Revenue 55,000 3,300 58,300 Adjusting Entries 1 Insurance Expense Prepaid Insurance 6,800 6,800 380 2 Supplies Expense Supplies 380 2,000 3 Interest Receivable Interest Income 2.000 2,000 4 Interest Expense Interest Payable 2,000 6,327 5 Depreciation on Equipment Expense Accumulated Depreciation 6,327 3,000 6 Depreciation on Building Expense Accumulated Depreciation 3,000 1,000 7 Salaries & Wages Expense Salaries & Wages Payable 1,000 3,806 8 Bad Debts Allowance For Bad Debts 3,806 21,692 9 Income Tax Expense Income Tax Payable 21,692 Depreciation Expense - Building Depreciation Expense - Equipment - Administrative Expenses Selling Expenses Dividends Income Tax Expense Income Tax Payable Income Summary Dresser Company Balance Sheet December 31, 2018 $ $ Assets: Current Assets: Cash Accounts Receivable Less Allowance for Doubtful Accounts Inventory ** Prepaid Insurance Supplies Total Current Assets 10,200 12,480 (6,250) 12,620 2,000 410 31,460 Liabilities and Stockholders' Equity: Current Liabilities: Accounts Payable Interest Payable Salary and Wages Payable Total Current Liabilities 7,600 2,000 200 9,800 $ Long Term Liabilities: Bonds Payable, 8%, 10 year *** $ $ 50,000 $ Total Liabilities $ 59,800 Property, Plant and Equipment: Building Less Accumulated Depreciation Equipment Less Accumulated Depreciation Total Property, Plant and Equipment 100,000 (30,000) 60,000 (35,855) 94,145 Stockholders' Equity: Common Stock Retained Earnings Total Stockholders' Equity $ $ 55,000 10,805 $ 65,805 Total Assets $ 125,605 Total Liabilities and Stockholders' Equity $ 125,605 *** Interest payable Jan. 1 and July 1 **Inventory balance is: 5000 units at $1.60 each 2800 units at $1.65 each Total Inventory $ 8,000 4,620 12,620 $ Journal Entries Credit JE # Account Names 1 Interest Payable Cash Debit 2,000 2,000 2 Salaries & Wages Salaries & Wages Payable 550 200 Format Cash 750 52,000 3 Accounts Receivable Sales Revenue 52,000 1,200 4 Supplies Accounts Payable 1,200 5,100 5 Inventory Accounts Payable 5,100 39,200 6 Accounts Receivable Inventory Sales 39,200 5,700 7 Allowances For Doubtful Debts Accounts Receivable 5,700 2,000 8 Interest Expense Cash 2,000 2,580 9 Inventory Accounts Payable 2,580 1,000 1,000 10 Accounts Receivable Cash Accounts Receivable Allowances For Doubtful Debts 1,000 1,000 64,000 11 Salaries & Wage Expense Cash 64,000 7,200 12 Prepaid Insurance Cash 7,200 37,500 13 Cash Inventory Sold 37,500 98,900 14 Cash Accounts Receivable 98,900 6,650 15 Inventory Accounts Payable 6,650 16 Accounts Payable 12,300 Cash 12,300 8,700 17 Cash Sales Revenue 8,700 18 Selling Expenses Administrative Expenses Cash 1,800 2,650 4,450 4,000 19 Dividend Cash 4,000 20 6% Notes Receivable Interest Revenue Sales Revenue 55,000 3,300 58,300 Adjusting Entries 1 Insurance Expense Prepaid Insurance 6,800 6,800 380 2 Supplies Expense Supplies 380 2,000 3 Interest Receivable Interest Income 2.000 2,000 4 Interest Expense Interest Payable 2,000 6,327 5 Depreciation on Equipment Expense Accumulated Depreciation 6,327 3,000 6 Depreciation on Building Expense Accumulated Depreciation 3,000 1,000 7 Salaries & Wages Expense Salaries & Wages Payable 1,000 3,806 8 Bad Debts Allowance For Bad Debts 3,806 21,692 9 Income Tax Expense Income Tax Payable 21,692 Depreciation Expense - Building Depreciation Expense - Equipment - Administrative Expenses Selling Expenses Dividends Income Tax Expense Income Tax Payable Income Summary
