Question
I need Help with the following questions. 1. Prepare journal entries for each event. 2. Prepare adjusting entries. 3. Prepare trial balance sheet and adjusted
I need Help with the following questions.
1. Prepare journal entries for each event. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2. Prepare adjusting entries. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3. Prepare trial balance sheet and adjusted trial balance. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4. Prepare Income Statement, Retained Earnings Statement and Balance Sheet. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5. Prepare closing entries. I have already did the Journal Entries i believe they are correct. I just need help on the rest. Below is the Jurnals and the Data.
The 2014 balance sheet of the Captain Fishing Inc. is attached. During 2015, the following events occurred. 1. On January 10, sold merchandise on account to Rayms $8,500 and Fischer $7,600. Terms 2/10, n/30. 2. On January 12, purchased merchandise on account from Zapfel $3,200 and Liotta $2,600. Terms 1/10, n/30. 3. On January 14, received checks, $4,500 from Longhini and $2,500 from Hall, for sales on account after discount period has lapsed. 4. On January 15, sent checks to Joosten for 9,000 less 3% cash discount, and to Maida for $10,000 less 2% cash discount. 5. On January 16, issued credit of $500 to Fischer for merchandise returned. 6. On January 21, paid off the balances to Zapfel and Liotta for the purchases made on January 12. 7. On Feburary 9, received payment in full from Rayms and Fischer. 8. On March 1, paid rent of $9,600 for a two-year term starting from July 1, 2015. 9. On April 1, the company CEO paid $49,999 from her savings bank account to purchase a car for personal use. 10. On April 12, paid $700 cash for office supplies. 11. Cash dividends totaling $1,600 were declared on June 13 and paid to stockholders on June 23. 12. Issued a note of $120,000 to bank (one year, annual interest rate 4%) for cash on July 1. 13. On July 5, purchased merchandise from Maida $32,000, terms 3/10, n/30. 14. On July 7, issued common stock 1000 shares, $10 par, in exchange of a land with a fair market value of $16,000. 15. On July 8, returned $300 of merchandise to Maida and received credit. 16. On August 1, sold merchandise to Lachey on account $80,000, term 1/10, n/30. 17. Paid off the balance to Maida on August 4. 18. On Auguest 8, paid utilities expense, $11,920. 19. On August 18, Lachey paid off its balance. 20. On September 1, paid cash $7,500 to Farmington for merchandise purchased last year. 21. On October 1, paid off notes payable $110,000 (issued in 2014) and associated interest $5,000 (this amount includes $1,500 interest payable on the balance sheet). 22. Over the year, cash sales to other retail customers were $16,500. 23. Over the year, sales and office employees earned $27,500 in salaries and wages, of which $2,500 remained as payable at the end of year. 24. On Dec 31, received an utilities bill of $1,250 (for December 2015) and paid off the bill on January 10, 2016. 25. On Dec 31, paid 5% interest on bonds payable.
Additional Information at the end of the year: 1 .Depreciation expense for the year was $14,800. 2. The company estimated that it will pay federal income tax, $5,550. 3. After physically counting, the company decided that the ending inventories was $41,164. 4. Based on its historical data, the bad debts expense are about $2,000. 5. Unearned revenue was decreased by $12,000. 6. The company expenses all of the supplies purchased during the year. 7. No insurance policy was effective during the year (will be effective from Jan 1, 2016). 8. The company uses the gross method to record its purchases and sales on credit. 9. The company adopts the periodic inventory system. 10. Rayms, Fischer, and Lachey had zero balance on account as of Jan 1, 2015.
Total Assets as of Dec 31, 2015 944,512 Net Income of 2015 1,272 Cash ending balance 47,608
CAPTAIN FISHING INC. BALANCE SHEET DECEMBER 31, 2014 Current Assets Cash 50,800 Notes Receivable 16,000 Accounts Receivable 41,800 Less: Allowance for Doubtful Accounts (3,000) Inventories 40,000 Prepaid Insurance 540 Total Current Assets 146,140 Non-Current Assets Long-term Investments Investments in held-for-maturity securities 51,000 Land held for future development 45,500 Property, Plant, and Equipment Land 85,000 Buildings 675,000 Less: Accumulated Depreciation (187,500) Intangible Assets Capitalized Development Costs 8,000 Goodwill 76,000 Other Identifiable Intangible Assets 48,000 Total Non-Current Assets 801,000 Total Assets 947,140
Current Liabilities Notes Payable 110,000 Accounts Payable 32,500 Unearned Revenues 12,000 Income Taxes Payable 9,440 Property Taxes Payable 6,600 Interest Payable 1,500 Total Current Liabilities 172,040 Non-Current Liabilities Provisions Related to Pensions 93,100 Bonds Payable 300,000 Total Non-Current Liabilities 393,100 Total Liabilities 565,140 Stockholders' Equity Common Stock 100,000 Preferred Stock 100,000 Paid-in-capital - Common Stock 27,500 Paid-in-capital - Preferred Stock 10,000 Retained Earnings 152,250 Accumulated Other Comprehensive Income 5,000 Less: Treasury Stock (12,750) Total Stockholders' Equity 382,000 Total Liabilities and Stockholders' Equity 947,140
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