Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Problem 13-4 Various liabilities (LO13-1, 13-2, 13-3, 13-4) The unadjusted trial balance of the Manufacturing Equitable at December 31, 2018, the end of its fiscal
Problem 13-4 Various liabilities (LO13-1, 13-2, 13-3, 13-4) The unadjusted trial balance of the Manufacturing Equitable at December 31, 2018, the end of its fiscal year, included the following account balances. Manufacturing's 2018 financial statements were issued on Apr 1, 2019 Accounts receivable Accounts payable Mortege note payable PRE Other information a. The banknotes, issued August 1, 2018, are due on July 31 2019, and pay interest at a rate of 2. payable at maturity b The mortgage note is due on March 1, 2019 Interest at 1155 has been paid up to December 21 (assume is a realistic rate) Manufacturing intended at December 31, 2018 to refinance the note on its due date with a new year mortgage note. In fact, on March 1, Manufacturing paid $442.000 in cash on the principal balance and refinanced the remaining 5.000.000 Included in the accounts receivable balance at December 31, 2018, were two subsidiary accounts that had been overpaid and had crede balances totaling $19,050. The accounts were of two major customers who were expected to order more merchandise from Manufacturing and apply the overpayments to those future purchases d On November 1, 2018, Manufacturing rented a portion of its factory to a tenant for $25,400 per year, payable in advance. The payment for the 12 months ended October 31, 2019, was received as required and was credited to rent revenue Required 1. Prepare any necessary adjusting journal entries at December 31, 2018. pertaining to each tem of other information (a-d). 2. Prepare the current and long-term liability sections of the December 31, 2018 balance sheet Complete this question by entering your answers in the tabs below. Prepare any necessary adjusting your entries at December 31, 2018, pertaining to required for a transaction avant select "No journal entry required in the first account of other information (ad). If no antry is Journal entry worksheet
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started