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please help, thank you Peter Maxwell is the owner of the Maxwell shop, which is specialize in selling car's tires. The shop has as October
please help, thank you
Peter Maxwell is the owner of the Maxwell shop, which is specialize in selling car's tires. The shop has as October 31st fiscal year end. It uses a perpetual inventory as a method of accounting uring October, the last month of the fiscal year, the company had the following transactions: Oct. I Paid $18,000 for October's rent in cash. 1 Building purchased for $100,000 with a 20-year estimated useful life and no scrap value. The building has been available for use. For all fixed assets, the Maxwell Ltd uses the straight-line depreciation method. 1 Office supplies purchased on account having cost of $9000 4 Sold 800 tyres on account to Hella Company with the price of $410 each, terms 2/9,n/30,FOB shipping point. 5 Sold equipment with an original cost of $65,000 for $20,000. The original estimated useful life of it was 5 years with no scrap value and it had been used for 18 months. 5 Paid for the office supplies purchased on account on October 1st. 10 Purchased 200 tyres on account from Orange Line Co., FOB destination, for $56,000. 11 Paid to the supplier for the inventory purchased at the Oct 10th transaction. 16 The product purchased by Hella Company was returned for a refund of $10,000. The goods were returned to inventory at a cost of $5,000. 17 Paid salaries, $35,000 in cash. 19 Paid Orange Line Co. For half of the merchandise purchased on October 10th. 21 Paid postage $1,000, Miscellaneous $500, Entertainment $400 in cash. 23 Hella Company paid the amount owing. 24 P. Maxwell took out $3,800 cash for personal use. 25 Collected $1,400 from past accounts receivable. 28 Paid $5,200 for advertising in cash. 30 Wrote off uncollectible account $3,700. (a) Create T-accounts for each of the above accounts and enter the October 1st balances (b) Prepare Journal entries for the October transactions (c) Post the transactions (transfer from journal to the T-accounts) (d) Prepare a Trial Balance at October 31st (e) Journalize and post the following adjusting entries: 1. Four months of the 12-month insurance policy have expired on Oct 31st 2. The depreciation/amortization expense for the month as follows: $11,700 for building, except for the new building purchased on Oct Ist $6,400 for equipment. $2,900 for patents 3. The note payable has an annual interest rate of 6,0%. Two months of interest have accrued (added up) on October 315t. 4. On October 01, 2021. Maxwell purchased a 1-year bond for $500,000 that pays the interest at 12% interest. The company will collect the principal and interest amounts due at the end of the bond's term 5. Salaries accrued but not paid at October 31nt total $40,000 6. The application of the aging method results in an estimated uncollectible accounts receivable amount of $21,100. (f) Prepare an Adjusted Trial Balance at October 31th. (g) Prepare an Income Statement, Statement of Owner's Equity, and Classified Balance Sheet (Note: account balances in the T-accounts will change after step (e)) (h) Record and post-closing entries (i) Prepare a post-closing trial balance on October 31st (j) Prepare an Adjusted Trial Balance at October 3135 (k) Prepare an Income Statement, Statement of Owner's Equity, and Classified Balance Sheet (Note: account balances in the T-accounts will change after step (e)) (I) Record and post-closing entries (m) Prepare a post-closing trial balance on October 31st Peter Maxwell is the owner of the Maxwell shop, which is specialize in selling car's tires. The shop has as October 31st fiscal year end. It uses a perpetual inventory as a method of accounting uring October, the last month of the fiscal year, the company had the following transactions: Oct. I Paid $18,000 for October's rent in cash. 1 Building purchased for $100,000 with a 20-year estimated useful life and no scrap value. The building has been available for use. For all fixed assets, the Maxwell Ltd uses the straight-line depreciation method. 1 Office supplies purchased on account having cost of $9000 4 Sold 800 tyres on account to Hella Company with the price of $410 each, terms 2/9,n/30,FOB shipping point. 5 Sold equipment with an original cost of $65,000 for $20,000. The original estimated useful life of it was 5 years with no scrap value and it had been used for 18 months. 5 Paid for the office supplies purchased on account on October 1st. 10 Purchased 200 tyres on account from Orange Line Co., FOB destination, for $56,000. 11 Paid to the supplier for the inventory purchased at the Oct 10th transaction. 16 The product purchased by Hella Company was returned for a refund of $10,000. The goods were returned to inventory at a cost of $5,000. 17 Paid salaries, $35,000 in cash. 19 Paid Orange Line Co. For half of the merchandise purchased on October 10th. 21 Paid postage $1,000, Miscellaneous $500, Entertainment $400 in cash. 23 Hella Company paid the amount owing. 24 P. Maxwell took out $3,800 cash for personal use. 25 Collected $1,400 from past accounts receivable. 28 Paid $5,200 for advertising in cash. 30 Wrote off uncollectible account $3,700. (a) Create T-accounts for each of the above accounts and enter the October 1st balances (b) Prepare Journal entries for the October transactions (c) Post the transactions (transfer from journal to the T-accounts) (d) Prepare a Trial Balance at October 31st (e) Journalize and post the following adjusting entries: 1. Four months of the 12-month insurance policy have expired on Oct 31st 2. The depreciation/amortization expense for the month as follows: $11,700 for building, except for the new building purchased on Oct Ist $6,400 for equipment. $2,900 for patents 3. The note payable has an annual interest rate of 6,0%. Two months of interest have accrued (added up) on October 315t. 4. On October 01, 2021. Maxwell purchased a 1-year bond for $500,000 that pays the interest at 12% interest. The company will collect the principal and interest amounts due at the end of the bond's term 5. Salaries accrued but not paid at October 31nt total $40,000 6. The application of the aging method results in an estimated uncollectible accounts receivable amount of $21,100. (f) Prepare an Adjusted Trial Balance at October 31th. (g) Prepare an Income Statement, Statement of Owner's Equity, and Classified Balance Sheet (Note: account balances in the T-accounts will change after step (e)) (h) Record and post-closing entries (i) Prepare a post-closing trial balance on October 31st (j) Prepare an Adjusted Trial Balance at October 3135 (k) Prepare an Income Statement, Statement of Owner's Equity, and Classified Balance Sheet (Note: account balances in the T-accounts will change after step (e)) (I) Record and post-closing entries (m) Prepare a post-closing trial balance on October 31st Step by Step Solution
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