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Please check my completed assignment for errors. Please show calculations if possible, Thank you! Record the following adjusting entries in general journal form as of
Please check my completed assignment for errors. Please show calculations if possible, Thank you!
Record the following adjusting entries in general journal form as of December 31, 2020: 1. Supplies on hand at the end of the year: $700 2. Equipment shown on the 12/1 TB was purchased on 1/1/17, has a 8 year life, no salvage value and company uses double-declining balance method for its depreciation. 3. Included in the truck balance is a fully depreciated truck for $6,500 and a new truck valued at $50,000 which was purchased on 1/1/17. The new truck has a 9-year life, no salvage value and the company uses the sum-of-the-years digits for its depreciation method on this asset. 4. Don't forget to depreciate the new equipment! 5. The patent was purchased on 1/1/2013 for $100,000 and its useful life is 20 years. 6. $40,600 was paid on October 1, 2020 for six months rent. 7. On February 1, 2020, paid $38,500 for a 12-month insurance policy. 8. Declared dividends of $30,000 on December 31 9. The fair market value of the securities (classified as trading) is $17,000. 10.3% of Accounts Receivable is estimated to be uncollectible. Company uses the allowance method for estimating its uncollectible accounts. 11. Accrued salaries expense of $6,000 and recorded Payroll tax expense on account of $2300. 12. Had issued $300,000 of 6%, 10-year bond, dated 1/1/18 for $323,383 when the market rate was 5%. Interest is paid on June 30 and January 1 using the effective interest rate method. The June payment is included in the Dec. 1 TB. (Additional credit awarded if amortization table is included) 13. One month has passed since the issuance of restricted stock. 14. Interest on 30 days of note payable, dated 12/1/20 should be accrued. (Assume 360 days in a year for calculation) 15. Accrued interest of 7% on long-term note payable of $175,000. 16. Income tax rate is 21% Additional Information: During 2020, the following additional transactions occurred: (Hint: these are already included in 12/1/20 TB, but may be needed for the Statement of Cash Flows) 1. Issued 5,000 shares of common stock, $1 par, for $40,000 on June 1, 2020. 2. Some equipment was sold (original cost $10,000, book value $6,000) for $3,000 (do not consider in your #2 AJE above) 3. All amortization and depreciation is recorded once a year on December 31. Acct 100 101 102 103 104 105 106 107 125 126 127 128 130 175 201 202 203 204 205 206 207 208 221 225 226 301 302 304 305 306 310 401 500 600 601 602 604 605 606 607 608 609 610 611 Cascade Trifort, Inc. Trial Balance December 1, 2020 Description DRC Cash 707,685 Accounts Receivable 788,501 Allowance for Doubtful Accounts 7,900 Trading Securities 18,000 Inventory 110,000 Prepaid Rent 40,600 Prepaid Insurance 38,500 Supplies 3,600 Equipment 150,000 Accumulated Depreciation Equipment 82.719 Truck 56,500 Accumulated Depreciation Truck 32,542 Land 35,000 Patents 65,000 Accounts Payable 368,300 Salaries Payable 78,000 Utilities Payable 17,000 Payroll Taxes Payable 28,417 Interest Payable Dividends Payable Income Tax Payable 19,585 Note Payable -short term 71,640 Note Payable-long term 175,000 Bond Payable 300,000 Premium on Bond Payable 18,572 Common Stock, $1 par, 35,000 45,000 APIC Common Stock 158,000 Unearned Compensation Treasury Stock APIC Treasury Stock Retained Earnings 242,000 Sales 653.000 Cost of Goods Sold 175.000 Compensation Expense Salaries Expense 42,000 Rent Expense Bad Dept Expense Payroll Tax Expense 23,000 Advertisting Expense 15,000 Insurance Expense 7,000 Supplies Expense Depreciation Expense Amortization Expense Utilities Expense 17,000 Miscellaneous Expenses 3,300 Interest Expense 7,990 Income Tax Expense Realized Gains (Losses) 6,000 Unrealized Gains (Losses) 2.303,675 2 ,303,675 612 614 615 617 620 Totals Adjusting Entries 1 Supplies Expense Supplies 2,900 2,900 28,125 2 Depreciation Expense Accumulated Depreciation - Equipment 28,125 8,889 3 Depreciation Expense Accumulated Depreciation - Truck 8,889 7,000 4 Depreciation Expense Accumulated Depreciation - Equipment 7,000 5,000 5 Amortization Expense Patent FELELALALALALALE 5,000 20,300 6 Rent Expense Prepaid Rent 20,300 32,083 7 insurance Expense Prepaid Insurance 32,083 30,000 8 Dividends Dividends Payable 30,000 1,000 9 Unrealized Losses Trading Securities 1,000 20,255 10 Bad Debt Expense Allowance for Doubtful Accounts 20,255 6,000 2,300 11 Salaries Expense Payroll Tax Expense Salaries Payable Payroll Tax Payable 6,000 2,300 12 Interest Expense Premium on Bonds Payable Interest Payable 7,500 1,500 9,000 40,000 13 Compensation Expense Unearned Compensation 40,000 2,083 14 Interest Expense Interest Payable 2,083 12,250 15 Interest Expense Interest Payable 12,250 74,923 16 Income Tax Expensel Income Tax Payable 302, 108.57 74,923 302, 108.57Step by Step Solution
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