Question
I need in 30 minutes (TCO F) This is a 2-part question. Part 1) Journalize the adjusting entries below at year-end December 31, XXXX. Please
I need in 30 minutes
(TCO F) This is a 2-part question.
Part 1) Journalize the adjusting entries below at year-end December 31, XXXX. Please share your supporting calculations for the adjusting entries requiring computations.
(a) The unadjusted balance of the Supplies account is $2,200. The total cost of supplies remaining is $1,000.
TCO H) XYZ Corporation purchased 10, $1,000, 8% bonds of Jackson Corporation when the market rate of interest was 10%. Interest is paid semiannually on the bonds, and the bonds mature in 6 years. Instructions: Compute the total price paid by XYZ Corporation for the bonds showing your calculation for the present value of the principal and the present value of the interest payments. Present value tables (Exhibit 8-14 and Exhibit 8-15) are available on pages 452 and 453 of your Harrison, Horngren, and Thomas textbook. NOTE: Be sure you review the PV Tables completely to ensure you find the correct period and interest rate for the calculation. (Points : 20)
(b) Accrued Service Revenue of $9,000. (c) Equipment was purchased at the beginning of the year for $45,000. The equipment's useful life is 5 years, and the residual value is $5,000. Record the depreciation for this year. (d) The weekly payroll is $25,000. Employees are owed for 3 days of a 5-day work week. (e) Beginning unearned service revenue is $7,500, and ending unearned service revenue is $3,500. (f) The business has interest expense of $750 that is due in January. (30 points)
Part 2) Calculate the overall overstatement or understatement of net income if the above adjusting entries were not made. Please share your work. (6 points) (Points : 36)
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