Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Problem 2.09%) Data relating to the balances of various accounts affected by adjusting or closing entries appear below. (The entries which caused the changes in
Problem 2.09%) Data relating to the balances of various accounts affected by adjusting or closing entries appear below. (The entries which caused the changes in the balances are not given) You are asked to supply the missing journal entries which would logically account for the changes in the account balances 1. Accumulated depreciation -equipment at 1/1/10 was 230,000. At 12/31/10 the balance of the account was 270,000. During 20i0, one piece of equipment was sold. The equipment had an original cost of 40,000 and was 3/4 depreciated when sold. You are to prepare the missing adjusting entry 2. Allowance for doubtful accounts on 1/1/10 was 50,000. The balance in the all account on 12/31/10 after making the annual adjusting entry was 65,000 and during 2010 bad debts written off amounted to 30,000. You are to provide the missing adjusting entry 3. Retained earnings at 1/1/10 was 150,000 and at 12/31/10 it was 210,000. During 2010, cash dividends of 50,000 were paid and a share dividend of 40,000 was issued. Both ing dividends were properly charged to retained earnings. You are to provide the missing clos
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