Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Johnson's Boat Yard, Inc., repairs, stores, and cleans boats for customers. It is completing the accounting process for the year just ended on November 30.

image text in transcribedimage text in transcribed

Johnson's Boat Yard, Inc., repairs, stores, and cleans boats for customers. It is completing the accounting process for the year just ended on November 30. The transactions for the past year have been journalized and posted. The following data with respect to adjusting entries at year-end are available: a. Johnson's winterized (cleaned and covered) three boats for customers at the end of November but did not record the service for $3,600. b. On October 1, Johnson's paid $1,560 to the local newspaper for an advertisement to run every Thursday for 12 weeks. All ads have been run except for three Thursdays in December to complete the 12-week contract. C. Johnson's borrowed $198,000 at a(n) 10 percent annual interest rate on April 1 of the current year to expand its boat storage facility. The loan requires Johnson's to pay the interest quarterly until the note is repaid in three years. Johnson's paid quarterly interest on July 1 and October 1. d. The Sanjeev family paid Johnson's $4,020 on November 1 to store its sailboat for the winter until May 1 of the next fiscal year. Johnson's credited the full amount to Unearned Storage Revenue on November 1. e. Johnson's used boat-lifting equipment that cost $250,000; $25,000 was the estimated depreciation for the current year. f. Boat repair supplies on hand at the beginning of the current year totaled $17,300. Repair supplies purchased and debited to Supplies during the year amounted to $46,200. The year-end count showed $11,700 of the supplies on hand. g. Wages of $5,800 earned by employees during November were unpaid and unrecorded at November 30. The next payroll date will be December 5 of the next fiscal year. Required: For each of the transactions above, indicate the amount and the direction of effects of the adjusting entry on the elements of the balance sheet and income statement. (Enter negative amounts with a minus sign.) payroll date will be December 5 of the next fiscal year. Required: For each of the transactions above, indicate the amount and the direction of effects of the adjusting entry on the elements of the balance sheet and income statement. (Enter negative amounts with a minus sign.) Balance Sheet Liabilities Stockholders' Equity Income Statement Revenues Expenses Net Income Transaction Assets Screenshot

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Where Does Money Grow

Authors: Beth McGuinness

1070202150, 978-1070202150

More Books

Students also viewed these Accounting questions

Question

What has been your desire for leadership in CVS Health?

Answered: 1 week ago

Question

Question 5) Let n = N and Y Answered: 1 week ago

Answered: 1 week ago

Question

outline some of the current issues facing HR managers

Answered: 1 week ago