(napur y Comprehensive Problem) creuit UppoLUM J *Comprehensive Accounting Cycle Review 9-1 (Part Level Submission) Flounder Corp.'s unadjusted trial balance at December 1, 2017, is presented below. Debit Credit Cash $27,000 Accounts Receivable 36,400 Notes Receivable 10,000 Interest Receivable Inventory 36,060 Prepaid Insurance 3,300 Land 22,000 Buildings 154,200 Equipment 62,000 Patent 9,900 Allowance for Doubtful Accounts $450 Accumulated Depreciation-Buildings 51,400 Accumulated Depreciation Equipment 24,800 Accounts Payable 28,200 Salaries and Wages Payable Notes Payable (due April 30, 2018) 11,600 Income Taxes Payable Interest Payable Notes Payable (due in 2023) 35,900 Common Stock 58,900 Retained Earnings 15,510 Dividends 12,000 Sales Revenue 948,500 Interest Revenue Gain on Disposal of Plant Assets Bad Debt Expense Cost of Goods Sold 639,000 Depreciation Expense Income Tax Expense Insurance Expense Interest Expense 0 61.900 Other Operating Expenses Amortization Expense Salaries and Wages Expense 101,500 $1,175,260 $1,175,260 Total The following transactions occurred during December Durchased equipment for $18,000, plus sales taxes of $600 (paid in cash) under sold for $3,600 equipment which originally cost $5,400. Accumulated depreciation on this equipment at January 1, 2017, was $1,850; 2017 depreciation prior to the sale of equipment was $500. 15 Flounder sold for $5,300 on account inventory that cost $3,440. 23 Salaries and wages of $6,520 were paid. Adjustment data: Flounder estimates that uncollectible accounts receivable at year-end are $4,060. 2. The note receivable is a one-year, 8% note dated April 1, 2017. No interest has been recorded. The balance in prepaid insurance represents payment of a $3,300, 6-month premium on September 1, 2017. 4. The building is being depreciated using the straight-line method over 30 years. The salvage value is $32,700. 5. The equipment owned prior to this year is being depreciated using the straight-line method over 5 years. The salvage value is 10% of cost. 6. The equipment purchased on December 2, 2017, is being depreciated using the straight-line method over 5 years, with a salvage value of $2,280. 7. The patent was acquired on January 1, 2017, and has a useful life of 9 years from that date. 8. Unpaid salaries at December 31, 2017, total $2,190. 9. Both the short-term and long-term notes payable are dated January 1, 2017, and carry a 10% interest rate. All interest is payable in the next 12 months. 10 Income tax expense was $13,600. It was unpaid at December 31. *(a) Your answer is partially correct. Try again. Prepare journal entries for the transactions listed above and adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Record fournal entries in the order presented in the problem.) Debit Credit Date Dec. 2 Account Titles and Explanation Equipment Depreciation Expense Accidated Repreciation - Boue me (To record depreciation expense on equipment.) Accumulated Depreciation Equipment Evement Ensin on Disposal of Plant Assets (To record sale of equipment.) Eccounts Receivable Sales Revenue (To record sales revenue.) Eost of Goods Solo (To record cost of goods sold.) Salaries and Wages Expense go Bo Bo Bo 3 Zoo Bec Dec. 37 - 1.0.0...0.0.0 0 0 0000 Bad Debt Expense Aliane Gr 1 fol ke 04060 2. Enterest Receivable Interest Revenue 3. Insurance Expense Prepaid Insurance 4. Depreciation Expense 337.50 Accumulated Depreciation Buildings 0 5. Depreciation Expense oloUUL 230 Accumulated Depreciation Equipmen 6. Depreciation Expense Accumulated Depreciation Equipment 7. Amortization Expense 1100 Patent
