Question
Fill out the above calculations using the following information Record the following adjusting entries in general journal form as of December 31, 2021: Supplies on
Fill out the above calculations using the following information
Record the following adjusting entries in general journal form as of December 31, 2021:
Supplies on hand at the end of the year: $5,016.
Equipment shown on the 12/1 TB was purchased on 1/1/17, has a 7-year life, no salvage value and company uses double-declining balance method for its depreciation.
Dont forget to depreciate the new equipment, which is also depreciated using the DDB method!
Included in the truck balance is a fully depreciated truck for $6,500 and a new truck valued at $50,000 that was purchased on 1/1/17. The new truck has an 8-year life, no salvage value and the company uses the sum-of-the-years digits for its depreciation method on this asset.
The building is depreciated under the straight-line method over 39 years and was placed in service on July 1, 2018.
The machinery was purchased on December 1, 2020, has a 5-year useful life, salvage value of $4,000, and is being depreciated under the straight-line method.
The patent was purchased on 1/1/2013 for $100,000 and its useful life is 20 years.
Included in the Prepaid Insurance Account balance at 12/1 is a $75,000, 12-month insurance policy that was purchased on August 1, 2021.
Also included in the 12/1 trial balance (and the 12/31 TB) was an insurance policy that expired on 12/31/21.
Declared dividends of $350,000 on December 31.
The fair market value of the short-term investments is $12,500.
The total fair value of the Available for Sale Securities is $489,000.
2% of Accounts Receivable is estimated to be uncollectible. Company uses the allowance method for estimating its uncollectible accounts.
Accrued salaries of $145,000 and accrued payroll taxes of 6.2%.
Had issued $2,500,000 of 4%, 10-year bond, dated 1/1/18 for $2,305,133 when the market rate was 5%. Interest is paid on June 30 and January 1 using the effective interest rate method. The June payment is included in the Dec. 1 TB. Extra credit of 5 points if a complete amortization table (all 10 years) is included. Partial extra credit may be awarded.
One month has passed since the issuance of restricted stock.
Interest on 30 days of short-term note payable, dated 12/2/21 should be accrued. (Assume 360 days in a year for calculation)
Income tax rate is 21%
Additional Information:
Panther Builders, Inc. was founded in Grand Rapids, Michigan in 2013 by Davenport University entrepreneurs. It is a private company with more than 40 employees. Its operations include providing household renovation services to homeowners and small businesses.
During 2021, the following additional transactions occurred: (Hint: these are already included in 12/1/21 TB, but may be needed for the Statement of Cash Flows and calculation of Weighted Average shares of Common Stock )
Issued 35,000 shares of common stock, $1 par, for $700,000 on June 30, 2021.
Some equipment was sold (original cost $10,000, book value $3,000) for $6,500 (do not consider in your #2 AJE). Confirm with the 12/1 Trial Balance!
All amortization and depreciation is recorded once a year on December 31.
Market price per share of stock at 12/31/2021 was $18.75.
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