Please do the Adjusting Journal Entries (AJEs): 1. Wages earned by employees during December (17) and to be paid in January (18) are $35,875; associated
Please do the Adjusting Journal Entries (AJEs):
1. Wages earned by employees during December (17) and to be paid in January (18) are $35,875; associated payroll taxes on these wages are $2,910. (Record in two separate adjusting entries. The payroll taxes are an expense to the company for unemployment benefits and recorded as a payable to the state & federal taxing authority.)
2. The Unearned Consulting Revenue account has a balance of $261,220 as of December 31, 2017. On May 1, 2017 a client paid CMC $153,000 cash in advance for a 12-month consulting services contract. CMC will earn revenue evenly over this 12-month period. This was the only prepayment received from clients during the entire 2017 fiscal year and recorded with a credit to Unearned Revenue. Of the remaining balance in Unearned Revenue (i.e. at Jan 1 2017), 65% of the work has now been completed by year end.
3. You discover that a sale of a product was made on account and recorded in December for $148,500; the product has not yet been shipped (i.e. delivered to the customer). The cost of the product was 55% of its selling price. CMC uses the perpetual inventory method.
4. Bad debt expense is estimated to be 6% of ending Accounts Receivable. (Round to the nearest whole dollar.)
12/31/17 Closing Entries Credit General Ledger Account Name Unadj. Balance 12/31/17 Credit 12/31/17 AJEs Adjusted Balance 12/31/17 Post-Closing T/B 12/31/17 Credit Debit Credit Debit Debit Credit 92,063 913,780 92,063 913,780 92,063 913,780 Accounts Receivable Allowance for doubtful accounts Interest Receivable 29,462 29.462 29,462 1,270,160 26,774 16,063 160,500 1,270,160 26,774 16,063 160,500 1,270,160 26,774 16,063 160,500 Other Current Assets Investments Fair Value Adjustment Notes Receivable 220,000 876,418 332,983 348,791 220,000 876,418 332,983 348,791 220,000 876,418 332,983 348,791 Equipment and funitue Accum Depr 656,465 656.465 656,465 493,951 217,000 493,951 217,000 493,951 217,000 Patents 1,169,343 1,169,343 1,169,343 Dividends payable Interest payable Unearned Consulting Revenue Wages pay Payroll taxes payable Income tax payable Long term liabilities Common Stock Paid-in capital common stock Treasury Stock Retained Earnings Dividends Accum Other Comprehensive Income Sales revenue Service revenue 261,220 81,350 8,850 261,220 81,350 8,850 261,220 81,350 8,850 able 694,700 920,000 105,000 694,700 920,000 105,000 694,700 920,000 105,000 400,000 400,000 400,000 539,069 539,069 539,069 9,253,346 1,158,785 9,253,346 1,158,785 9,253,346 1.158,785 12/31/17 Closing Entries Credit General Ledger Account Name Unadj. Balance 12/31/17 Credit 12/31/17 AJEs Adjusted Balance 12/31/17 Post-Closing T/B 12/31/17 Credit Debit Credit Debit Debit Credit 92,063 913,780 92,063 913,780 92,063 913,780 Accounts Receivable Allowance for doubtful accounts Interest Receivable 29,462 29.462 29,462 1,270,160 26,774 16,063 160,500 1,270,160 26,774 16,063 160,500 1,270,160 26,774 16,063 160,500 Other Current Assets Investments Fair Value Adjustment Notes Receivable 220,000 876,418 332,983 348,791 220,000 876,418 332,983 348,791 220,000 876,418 332,983 348,791 Equipment and funitue Accum Depr 656,465 656.465 656,465 493,951 217,000 493,951 217,000 493,951 217,000 Patents 1,169,343 1,169,343 1,169,343 Dividends payable Interest payable Unearned Consulting Revenue Wages pay Payroll taxes payable Income tax payable Long term liabilities Common Stock Paid-in capital common stock Treasury Stock Retained Earnings Dividends Accum Other Comprehensive Income Sales revenue Service revenue 261,220 81,350 8,850 261,220 81,350 8,850 261,220 81,350 8,850 able 694,700 920,000 105,000 694,700 920,000 105,000 694,700 920,000 105,000 400,000 400,000 400,000 539,069 539,069 539,069 9,253,346 1,158,785 9,253,346 1,158,785 9,253,346 1.158,785
