Ivanhoe had the following account balances at December 31, 2023 Cash Accounts Receivable Supplies Prepaid Insurance Inventory Equipment $24,000 25,000 50,000 3,000 46,500 75,000 Accumulated Depreciation, Equipment Wages Payable Accounts Payable Common Shares Retained Earnings 25,000 6,000 50,000 75,000 67,500 During 2024, the following transactions occurred Sales of paninis for cash were $624,000, and sales of paninis on account were $60,000 Purchases of ingredients were $168,000, all on account Collections from customers for sales on account totalled $17,300 The company paid $43,200 for utilities expenses Ingredients with a cost of $200,000 were used in paninis that were sold Payments for ingredients purchased on account totalled $211,000 The company paid $91,200 for wages A dividend of $33,600 was declared and paid at the end of the year Information for adjusting entries The balance in the Supplies account at the end of 2024 was $1,200 Wages owed to employees at the end of 2024 were $3,360 At the end of 2024, the account balance in Prepaid Insurance was $1,500 The equipment had an estimated useful life of eight years with a residual value of $3,000 Prepare adjusting journal entries for adjustments 9 to 12 (List all debit entries before credit entries Credit account titles are automatically indented when the amount is entered Do not indent manually If no entry is required, select No Entry for the account titles and enter 0 for the amounts )

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 01, 2024

Ivanhoe had the following account balances at December 31, 2023: Cash Accounts Receivable Supplies Prepaid Insurance Inventory Equipment $24,000 25,000 50,000 3,000 46,500 75,000 Accumulated

Ivanhoe had the following account balances at December 31, 2023:

Cash

Accounts Receivable

Supplies

Prepaid Insurance

Inventory

Equipment

$24,000

25,000

50,000

3,000

46,500

75,000

Accumulated Depreciation, Equipment

Wages Payable

Accounts Payable

Common Shares

Retained Earnings

25,000

6,000

50,000

75,000

67,500

During 2024, the following transactions occurred:

Sales of paninis for cash were $624,000, and sales of paninis on account were $60,000.
Purchases of ingredients were $168,000, all on account.
Collections from customers for sales on account totalled $17,300.
The company paid $43,200 for utilities expenses.
Ingredients with a cost of $200,000 were used in paninis that were sold.
Payments for ingredients purchased on account totalled $211,000.
The company paid $91,200 for wages.
A dividend of $33,600 was declared and paid at the end of the year.

Information for adjusting entries:

The balance in the Supplies account at the end of 2024 was $1,200.
Wages owed to employees at the end of 2024 were $3,360.
At the end of 2024, the account balance in Prepaid Insurance was $1,500.
The equipment had an estimated useful life of eight years with a residual value of $3,000.

Prepare adjusting journal entries for adjustments 9 to 12. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)