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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
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 follwoing unadjusted trial balance along with some additional information for the december 31,2020 year end.
Jounalizd the adjusting entries at december 31,2020
A) Record to adjust earned sales
B) Record the estimated warranty liability
C) record the accrual of interest expense on the note payable
D) Record the accrual of interest on mortgage payable
E) Record to adjust for estimated uncollectible accounts
F) Record to adjust for shrinkage
G) Record the adjustment for salaries owing.
2.Prepare a classified balance sheet, list assests and liabilities in order of liquidity.
all other info:
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 Accum. deprec., building Accum. deprec., equipment Advance soles Allowance for doubtful accounts Buflding Cash Equipment Estimated warranty 11ability Unadjusted Balance Account $ 82,600 Land 134,000 Merchandise inventory 350,000 Mortgage payable 234,000 Sarah Golden, capital 600 Note payable 451,000 other operating expenses 83,900 Sales 655,000 salaries & admin expense 5,000 Sales returns and allowances Unadjusted Balance 139,000 73,400 232,625 251,965 163.000 1,179,000 1,363.000 60,890 9,400 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 35 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 vear. The next mortgage payment will be paid consisting of $9 305 Assets Current assets: Total current assets 0 Property, plant and equipment: t 0 Total property, plant and equipment s 0 Total assets Liabilities Current abilities S Total current liabilities Non-corrent Kacilities Assets Current assets: Total current assets 0 Property, plant and equipment: t 0 Total property, plant and equipment s 0 Total assets Liabilities Current abilities S Total current liabilities Non-corrent Kacilities 5. The mortgage is paid annually on the first day of the next year. The next mortgage payment will be paid consisting of $9,305 interest and $24,874 principal for a total of $34,179. 6. Uncollectible accounts are estimated to be 1% of outstanding receivables. 7. A physical count of the inventory showed a balance actually on hand of $63,400. 3. Sarah promised her operations manager a year-end 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 Step by Step Solution
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