OR PRIN Comprehensive Accounting Cycle Review 9-1 (Part Level Submission) Blue Spruce Corps unadjusted trial balance at December 1, 2017, is presented below. Debit Credit Cash $25,300 Accounts Receivable 36,400 Notes Receivable 8,900 Interest Receivable 0 Inventory 36,390 Prepaid Insurance 3,300 Land 20,600 Buildings 143,400 Equipment 60,000 Patent 10,350 Allowance for Doubtful Accounts $450 Accumulated Depreciation Buildings 47,800 Accumulated Depreciation- 24,000 Equipment Accounts Payable 27,600 Salaries and Wages 0 Payable Notes Payable (due April 30, 2018) 12,000 Income Taxes Payable Interest Payable 0 Notes Payable (due in 35,100 2023) Common Stock 59,900 Retained Earnings 19,390 Dividends 13,500 Sales Revenue 929,000 Interest Revenue 0 Gain on Disposal of 0 Plant Assets Bed Debt Expense 0 Cost of Goods Sold 632,500 Depreciation Expense 0 Income Tax Expense Insurance Expense 0 Interest Expense 0 Other Operating Expenses 61,600 Amortization Expense 0 Salaries and Wages 103,000 Expense Total $1,155,240 $1,155,240 The following transactions occurred during December Dec. Purchased equipment for $17,400, plus sales taxes of $600 (paid in cash). The following transactions occurred during December Dec. Purchased equipment for $17,400, plus sales taxes of $600 (paid in cash) 2 2 Blue sold for $3,500 equipment which originally cost $5,400. Accumulated depreciation on this equipment at January 1, 2017, was $1,900; 2017 depreciation prior to the sale of equipment was $480. 15 Blue sold for $5,400 on account inventory that cost $3,450. 23 Salaries and wages of $6,360 were pald. Adjustment data: 1. Blue estimates that uncollectible accounts receivable at year-end are $3,810. 2. The note receivable is a one-year, 8% note dated April 1, 2017. No interest has been recorded. 3. The balance in prepaid Insurance represents payment of a $3,300, 6-month premium on September 1, 2017. 4. The building is being deprecated using the straight-line method over 30 years. The salvage value is $30,300. 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 of $1,800. 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 $2,090. 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 $13,300. It was unpaid at December 31. (d) Prepare a December 31, 2017, balance sheet. (List Current Assets in order of liquidity. List Property, plant and Equipment in order of Land, Buildings and Equipment.) BLUE SPRUCE CORP. Balance Sheet For the Month Ending December 31, 2017 Assets Current Assets Cash 4440 Accounts Receivable 41800 Add Allowance for bad debt Labilities and Stockholders' Equlty Current Liabilities Accounts Payable Salaries and Wages Payable Notes Payable Liabilities and Stockholders' Equity Current Liabilities Accounts Payable Salaries and Wages Payable Notes Payable Income Taxes Payable Interest Payable Current Liabilities 59700 Current Liabilities Notes Payable 35100 Click if you would like to show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS LINK TO TEXT
