Golden Wedding Dress Company designs custom wedding dresses for brides to be. The person preparing the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Golden Wedding Dress Company designs custom wedding dresses for brides to be. The person preparing the adjusting entries at year-end was unable to complete the adjustments due to illness. You have been given the following unadjusted trial balance along with some additional information for the December 31, 2020, year-end. Account Accounts receivable. Accun. deprec., building Accus. deprec., equipment Advance sales Unadjusted Balance $ 83,000 Account Unadjusted Balance Land $ 136,000 131,000 Merchandise inventory 347,000 Mortgage payable 231,000 Sarah Golden, capital Allowance for doubtful accounts 600 Note payable 72,800 230,188 240,252 165,000 Building 445,000 Other operating expenses Cash 88,600 Sales 1,176,000 1,360,000 Equipment 649,000 Estinated warranty liability 4,700 Salaries & admin expense Sales returns and allowances 50,240 9,100 Other information: 1. Assume all accounts have a normal balance. 2. 80% of the balance in the Advance Sales account is for wedding dresses to be made and delivered by Golden during 2021; the remaining 20% is from sales earned during 2020. 3. Golden warranties its wedding dresses against defects and estimates its warranty liability to be 3% of adjusted net sales. 4. The 4%, 5-year note payable was issued on October 1, 2020; interest is payable annually each September 30. 5. The mortgage is paid annually on the first day of the next year. The next mortgage payment will be paid consisting of $9.207 interest and $24,672 principal for a total of $33,879. 6. Uncollectible accounts are estimated to be 1.5% of outstanding receivables. 7. A physical count of the Inventory showed a balance actually on hand of $63,100. 8. Sarah promised her operations manager a year-end performance bonus of $3,475, which would be paid with her salary in January for high sales achieved this year. Golden Wedding Dress Company designs custom wedding dresses for brides to be. The person preparing the adjusting entries at year-end was unable to complete the adjustments due to illness. You have been given the following unadjusted trial balance along with some additional information for the December 31, 2020, year-end. Account Accounts receivable. Accun. deprec., building Accus. deprec., equipment Advance sales Unadjusted Balance $ 83,000 Account Unadjusted Balance Land $ 136,000 131,000 Merchandise inventory 347,000 Mortgage payable 231,000 Sarah Golden, capital Allowance for doubtful accounts 600 Note payable 72,800 230,188 240,252 165,000 Building 445,000 Other operating expenses Cash 88,600 Sales 1,176,000 1,360,000 Equipment 649,000 Estinated warranty liability 4,700 Salaries & admin expense Sales returns and allowances 50,240 9,100 Other information: 1. Assume all accounts have a normal balance. 2. 80% of the balance in the Advance Sales account is for wedding dresses to be made and delivered by Golden during 2021; the remaining 20% is from sales earned during 2020. 3. Golden warranties its wedding dresses against defects and estimates its warranty liability to be 3% of adjusted net sales. 4. The 4%, 5-year note payable was issued on October 1, 2020; interest is payable annually each September 30. 5. The mortgage is paid annually on the first day of the next year. The next mortgage payment will be paid consisting of $9.207 interest and $24,672 principal for a total of $33,879. 6. Uncollectible accounts are estimated to be 1.5% of outstanding receivables. 7. A physical count of the Inventory showed a balance actually on hand of $63,100. 8. Sarah promised her operations manager a year-end performance bonus of $3,475, which would be paid with her salary in January for high sales achieved this year.
Expert Answer:
Answer rating: 100% (QA)
Below is a stepbystep detailed approach for preparing the adjusting journal entries for Golden Wedding Dress Company as of December 31 2020 The main answer values will be shown in boxes with red text ... View the full answer
Posted Date:
Students also viewed these accounting questions
-
Allenby Trading Company (ATC) has three divisions. ATC has a desired rate of return of 6.0%. The operating assets and income for each division are as follows: ATC headquarters has $200,000 of...
-
Suppose Fox Lake wants to analyze member charges using an OLAP cube. Thinking about all of the clubs activities (tennis, golf, swimming, restaurant, lessons, and pro shop), answer the following...
-
describe control tools and techniques, including data visualization?
-
Lilly Company is planning to buy a set of special tools for its grinding operation. The cost of the tools is $18,000. The tools have a three-year life and qualify for the use of the three-year MACRS....
-
You were hired as the CFO of a new company that was founded by three professors at your university. The company plans to manufacture and sell a new product, a cell phone that can be worn like a wrist...
-
Starplus Limited is well known for its focus on customer satisfaction and this is highlighted in the company profile. Their About Us page on their website tells a story of service and growth, all...
-
(10 points) What is the time complexity of the following code in terms of big O? for (i=0; i
-
Write a 150 words for your initial response. Your first response is due by midnight of the second day of the unit. Provide links to the resources you used to conduct your research. You must respond...
-
Many job design experts who have studied the changing nature of work say that stress can de reduced through the redesigning of jobs in the workplace'. Part A Discuss the three (3) job design tools as...
-
2. What are the two first order scattering peaks due to the solvent that are observed in a fluorescence EEM? At what relative wavelengths do they occur? What are their relative intensities (which is...
-
Explain the five (5) conditions which are required to issue the standard unqualified audit
-
Suppose two all equity-financed firms, Firm X and Firm Y, are considering the same new project that has a beta of 1. The project has an IRR of 9.2%. Firm X has a beta of 1.2 and Firm Y has a beta of...
-
T F Sole proprietorships generate the highest sales revenue.
-
T F Buy-sell agreements are strongly recommended for all nonproprietorships.
-
_____ a specific event that sparks an entrepreneur to proceed from thinking to doing
Study smarter with the SolutionInn App