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Prepare the adjusting entries The company had two locations and due to poor performance, they decided to discontinue operations related to the south location. The
Prepare the adjusting entries
- The company had two locations and due to poor performance, they decided to discontinue operations related to the south location. The revenue for this location (which is included in the above trial balance) amounted to $83,000 and the expenses, $91,000 (purchases $50,000, salaries $26,000 and rent $15,000). The company disposed of all assets of the south location for a loss of $10,000 ($31,000 original cost with accumulated depreciation of $17,000).
- The investments account is comprised of two investments. One $100,000 bond was purchased at face value and Bledsoes intends to hold until it matures. The interest on these bonds are 3% and is paid annually on January 31. Bledsoe purchased these bonds on September 1st of the current year. The fair value of these bonds are $96,000. The other investment are shares of Google stock, which were purchased on 10/20/17 for $797/share. Assume the closing price of Google on 12/31/18, was $1,036/share.
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