Question
Only Need 2 & 3 please 2. ADJUSTING JOURNAL ENTRIES: Prepare journal entries for the following adjusting entries at 10/31, Declared (but have not yet
Only Need 2 & 3 please
2. ADJUSTING JOURNAL ENTRIES: Prepare journal entries for the following adjusting entries at 10/31,
- Declared (but have not yet paid) a cash dividend of $3 per common share.
- The Building will be depreciated with Straight-Line over 360 months (30 years). The salvage value is $10,000.
- The first periodic payment on the mortgage note will require the following:
Cash Payment: $1,049.21
Interest Charge: $ 875.00
Principal Deduction: $ 174.21
- A total of $150 of office supplies remain at the end of the month.
- The Office Furniture will be depreciated with the Double-Declining Balance Method. The useful life is years with a $500 savage value. Remember, were depreciating for one month.
- The promissory note will only require the recognition of the unpaid interest charge for October. Interest Charge: ($5,750 * .12) / 12 = $57.50
- The company estimates an allowance for uncollectible accounts of $150. There is no beginning balance in the allowance account.
3. PREPARE AN ADJUSTED TRIAL BALANCE.
CHART OF ACCOUNTS
100 | Cash | 270 | Notes Payable - Long-Term |
105 | Accounts Receivable | 275 | Mortgage Payable |
106 | Allowance for Bad Debts - Accounts | 280 | Bonds Payable |
110 | Notes Receivable | 281 | Premium on Bonds Payable |
115 | Other Receivables | 282 | Discount on Bonds Payable |
120 | Inventory | 300 | Common Stock |
121 | Estimated Inventory Returns | 301 | Additional Paid in Capital - Common |
125 | Supplies | 305 | Preferred Stock |
130 | Prepaid Insurance | 306 | Additional Paid in Capital - Preferred |
131 | Prepaid Rent | 310 | Treasury Stock |
132 | Prepaid Asset - Other | 311 | Additional Paid in Capital - Treasury |
135 | Other Current Assets | 350 | Retained Earnings |
150 | Land | 355 | Cash Dividends |
155 | Buildings | 356 | Stock Dividends |
156 | Accumulated Depreciation - Building | 400 | Service Revenue |
160 | Machinery & Equipment | 401 | Service Allowance |
161 | Accumulated Depreciation - M & E | 402 | Service Discount |
165 | Furniture & Fixtures | 405 | Sales Revenue |
166 | Accumulated Depreciation - F & F | 406 | Sales Return or Allowance |
170 | Land Improvements | 407 | Sales Discount |
171 | Accumulated Depreciation - Land Imp. | 410 | Interest Revenue |
200 | Accounts Payable | 425 | Other Revenue |
205 | Salaries Payable | 500 | Cost of Goods Sold |
210 | Other Accrued Expenses | 505 | Rent Expense |
215 | Employee Income Tax Withholding | 510 | Utilities Expense |
216 | FICA Payable | 515 | Salaries Expense |
217 | FUTA Payable | 520 | Payroll Tax Expense |
218 | SUTA Payable | 525 | Supplies Expense |
220 | Sales Tax Payable | 530 | Insurance Expense |
225 | Dividends Payable | 535 | Depreciation Expense |
230 | Income Tax Payable | 540 | Bad Debts Expense |
235 | Interest Payable | 545 | Warranty Expense |
240 | Refunds Payable | 550 | Interest Expense |
245 | Warranty Payable | 555 | Income Tax Expense |
250 | Notes Payable - Current | 560 | Miscellaneous Expense |
255 | Current Portion of Long-Term Debt | 600 | Gain on Asset Disposal |
260 | Other Payables | 601 | Loss on Asset Disposal |
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