Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Part A: For each of the following items, prepare the appropriate adjusting entry which should be made on December 31. It is always a good

image text in transcribed
image text in transcribed
Part A: For each of the following items, prepare the appropriate adjusting entry which should be made on December 31. It is always a good idea to show your calculations on homework problems and on test problems. Debit Credit Amounts 1. You purchased equipment for $64,000 on October 1. On December 31, you estimated that the equipment had a 10 -year life and a $4,000 salvage value. Your company uses the straight-line method to estimate depreciation on December 31. 2. Your employees work Monday - Friday and are paid on Fridays. They earn $80,000 per week. December 31 was a Monday. Record the wages on December 31. 3. You provide a one-year warranty on the products you sell. On December 31 , you estimated that remaining warranty costs on the products you sold this year will total $9,000. Make the adjusting entry on December 31 to record this estimate for warranties. 4. You paid $3,000 for supplies on August 1, and called it "Supplies," On December 31, you still have $900 of these supplies left over. Make the adjusting entry on December 31. 5. Your company sold products for $800,000 on account throughout the year. On December 31, you estimated bad debts to be 2% of sales. 6. You borrowed $300,000 on March 1, and signed a 5 -year, 8% note. Record the interest on December 31 . Part B - Based upon the amounts and accounts as of December 31,2023, on the back of this page, prepare the appropriate closing entries which should be made at the end of 2023 .. Part A: For each of the following items, prepare the appropriate adjusting entry which should be made on December 31. It is always a good idea to show your calculations on homework problems and on test problems. Debit Credit Amounts 1. You purchased equipment for $64,000 on October 1. On December 31, you estimated that the equipment had a 10 -year life and a $4,000 salvage value. Your company uses the straight-line method to estimate depreciation on December 31. 2. Your employees work Monday - Friday and are paid on Fridays. They earn $80,000 per week. December 31 was a Monday. Record the wages on December 31. 3. You provide a one-year warranty on the products you sell. On December 31 , you estimated that remaining warranty costs on the products you sold this year will total $9,000. Make the adjusting entry on December 31 to record this estimate for warranties. 4. You paid $3,000 for supplies on August 1, and called it "Supplies," On December 31, you still have $900 of these supplies left over. Make the adjusting entry on December 31. 5. Your company sold products for $800,000 on account throughout the year. On December 31, you estimated bad debts to be 2% of sales. 6. You borrowed $300,000 on March 1, and signed a 5 -year, 8% note. Record the interest on December 31 . Part B - Based upon the amounts and accounts as of December 31,2023, on the back of this page, prepare the appropriate closing entries which should be made at the end of 2023

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

Auditing

Authors: Thomas D. Hubbard, J. R. Johnson, Steve Johnson, Joel D. Hubbard

6th Edition

0873932609, 9780873932608

More Books

Students also viewed these Accounting questions

Question

Summarize the reactive strategy of your organization.

Answered: 1 week ago