Mackenzie Corp. is preparing the December 31, 2023, year-end financial statements. Following are selected unadjusted account...
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Mackenzie Corp. is preparing the December 31, 2023, year-end financial statements. Following are selected unadjusted account balances: Estimated warranty liability $ 6,650 Income tax expense Mortgage payable, 5% 139,700 498,000 120-day note payable, 4% Unearned revenues Warranty expense $ 99,000 315,000 8,300 Additional information: a. $12,700 of income tax was accrued monthly from January through to November inclusive and paid on the 15th day of the following month. The actual amount of tax expense for the year is determined to be $145,040. b. A customer is suing the company. Legal advisers believe it is probable that the company will have to pay damages, the amount of which will approximate $159,000 given similar cases in the industry. c. During December, Mackenzie had sales of $729,000. 4% of sales typically require warranty work equal to 25% of the sales amount. d. Mortgage payments are made on the first day of each month. e. $113,400 of the Unearned Revenues remain unearned at December 31, 2023. f. The 120-day note payable was dated November 15, 2023. Required: 1. Prepare any required adjusting entries at December 31, 2023, for each of the above. (Use 365 days a year. Do not round intermediate calculations and round the final answers to 2 decimal places.) View transaction list 1 Record the accrual of income tax payable. 2 Record the accrual of provisional loss against lawsuit. 3 Record the accrual of warranty liability. 4 Record the accrual of interest on mortgage 5 Record the recognized earned portion of unearned fees. Credit > Mackenzie Corp. is preparing the December 31, 2023, year-end financial statements. Following are selected unadjusted account balances: Estimated warranty liability $ 6,650 Income tax expense Mortgage payable, 5% 139,700 498,000 120-day note payable, 4% Unearned revenues Warranty expense $ 99,000 315,000 8,300 Additional information: a. $12,700 of income tax was accrued monthly from January through to November inclusive and paid on the 15th day of the following month. The actual amount of tax expense for the year is determined to be $145,040. b. A customer is suing the company. Legal advisers believe it is probable that the company will have to pay damages, the amount of which will approximate $159,000 given similar cases in the industry. c. During December, Mackenzie had sales of $729,000. 4% of sales typically require warranty work equal to 25% of the sales amount. d. Mortgage payments are made on the first day of each month. e. $113,400 of the Unearned Revenues remain unearned at December 31, 2023. f. The 120-day note payable was dated November 15, 2023. Required: 1. Prepare any required adjusting entries at December 31, 2023, for each of the above. (Use 365 days a year. Do not round intermediate calculations and round the final answers to 2 decimal places.) View transaction list 1 Record the accrual of income tax payable. 2 Record the accrual of provisional loss against lawsuit. 3 Record the accrual of warranty liability. 4 Record the accrual of interest on mortgage 5 Record the recognized earned portion of unearned fees. Credit >
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Related Book For
Fundamental Accounting Principles Volume 2
ISBN: 9781260881332
17th Canadian Edition
Authors: Kermit D. Larson, Heidi Dieckmann, John Harris
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