Problem 22-7 You have been assigned to examine the financial statements of Nash Company for the year ended December 31, 2017. You discover the following situations. 1. Depreciation of $2,900 for 2017 on delivery vehicles was not recorded. 2. The physical inventory count on December 31, 2016, improperly excluded merchandise costing $17,300 that had been temporarily stored in a public warehouse. 3, A collection of $5,200 on account from a customer received on December 31, 2017, was not recorded until January 2, 2018. 4. In 2017, the company sold for $3,800 fully depreciated equipment that originally cost $25,200. The company credited the proceeds from the sale to the 5. During November 2017, a competitor company filed a patent-infring Nash uses a periodic inventory system. Equipment account. indicated that an unfavorable verdict is probable and a reasonable estimate of the court's award to the competitor is $119,100. The company has not refiected or disclosed this situation in the financial statements Nash has a portfolio of trading investments. No entry has been made to adjust to market. Information on cost and fair value is as follows. Cost Fair Value December 31, 2016 December 31, 2017 $95,300 $79,500 $95,300 77,700 7. At December 31, 2017, an analysis of payroll information shows accrued salaries of $12,100. The Salaries and Wages Payable account had a balance of 8. A large piece 9. A $12,900 insurance premium paid on July 1, 2016, for a policy that expires on June 30, 2019, was charged to insurance expense. 10. A trademark was acquired at the beginning of 2016 for $47,000. No amortization has been recorded since its acquisition. T $15,200 at December 31, 2017, which was unchanged from its balance at December 31, 2016. of equipment was purchased on January 3, 2017, for $43,200 and was charged to Maintenance and Repairs Expense. The equipment is estimated to have a service life of 8 years and no residual value. Nash normally uses the straight-line depreciation method for this type of equipment. period is 10 years erial, prepare ournal entries showing the Assume the trial balance has been prepared but the books have not been closed for 2017. Assuming all amounts are mat automaticaly indented when amount is entered. Do not adjustments that are required. (Ignore income tax considerations.) (Credit account titles are manually. If no entry is required, select "No Entry" for the account titles and enter Problem 22-7 You have been assigned to examine the financial statements of Nash Company for the year ended December 31, 2017. You discover the following situations. 1. Depreciation of $2,900 for 2017 on delivery vehicles was not recorded. 2. The physical inventory count on December 31, 2016, improperly excluded merchandise costing $17,300 that had been temporarily stored in a public warehouse. 3, A collection of $5,200 on account from a customer received on December 31, 2017, was not recorded until January 2, 2018. 4. In 2017, the company sold for $3,800 fully depreciated equipment that originally cost $25,200. The company credited the proceeds from the sale to the 5. During November 2017, a competitor company filed a patent-infring Nash uses a periodic inventory system. Equipment account. indicated that an unfavorable verdict is probable and a reasonable estimate of the court's award to the competitor is $119,100. The company has not refiected or disclosed this situation in the financial statements Nash has a portfolio of trading investments. No entry has been made to adjust to market. Information on cost and fair value is as follows. Cost Fair Value December 31, 2016 December 31, 2017 $95,300 $79,500 $95,300 77,700 7. At December 31, 2017, an analysis of payroll information shows accrued salaries of $12,100. The Salaries and Wages Payable account had a balance of 8. A large piece 9. A $12,900 insurance premium paid on July 1, 2016, for a policy that expires on June 30, 2019, was charged to insurance expense. 10. A trademark was acquired at the beginning of 2016 for $47,000. No amortization has been recorded since its acquisition. T $15,200 at December 31, 2017, which was unchanged from its balance at December 31, 2016. of equipment was purchased on January 3, 2017, for $43,200 and was charged to Maintenance and Repairs Expense. The equipment is estimated to have a service life of 8 years and no residual value. Nash normally uses the straight-line depreciation method for this type of equipment. period is 10 years erial, prepare ournal entries showing the Assume the trial balance has been prepared but the books have not been closed for 2017. Assuming all amounts are mat automaticaly indented when amount is entered. Do not adjustments that are required. (Ignore income tax considerations.) (Credit account titles are manually. If no entry is required, select "No Entry" for the account titles and enter