Question
Supplementary Information Godox has a note that their owed $10,000 in wages to his employees for the period ending December 31st. Godox owed $10,000 in
Supplementary Information Godox has a note that their owed $10,000 in wages to his employees for the period ending December 31st. Godox owed $10,000 in rent the period ending December 31st To expand their warehouse, Godox has started a bank loan of $20,000 with the local bank on January 1st this year. The loan carried an interest rate of 10%. The interest is due as the same time as the loan by the end of this year. Godox sometimes book special workshop with local well-known photographer and they have a payment in two weeks. On December 28th, a local photographer had a workshop at the location for 3 days. Godox charges one time setup fee of $500 and $300 for daily rental. The junior has not yet send out invoice and recorded. Godox declared a dividend of $1,000 on December 30th. Godox has some office supplies. At begin of the year, they had $2,500 of the office supplies in their warehouse including printing paper, backdrop and tapes. During the year, they purchased $5,000 more. On December 31st, there are only $2,000 of the supplies left. The junior didn't know how to record depreciation for the year and so left it for you to record. depreciation for all assets is charged using a straight-line method by taking the cost of the asset and dividing it by its expected useful life. The assets have expected useful lives as follows: Computer: 2 years Lift equipment: 15 years Studio furniture and fixtures: 10 years The invoice shows that Godox's owes $1,500 for a utilities bill and $4500 for advertising agency for the month of December. These amounts have not been recorded yet. Currently, Godox has a $150,000 of Accounts Receivable and a $3,000 of Allowance for Doubtful Accounts. Godox records its bad debt expense based on aging percentage of Accounts Receivable (See Exhibition 1.2 Aging Schedule) The amount currently sitting in prepaid insurance due the insurance policy purchased in June this year. The junior didn't know how to correct it, so he left it. This year's insurance policy was purchased on June 1 st for $12,000. The policy runs from June 1 to May 31 of each year.
Requirements Based on the information you need to prepare depreciation schedule, the adjusting journal entries, an adjusted trial balance, the statement of earnings (income statement), statement of retained earnings and the statement of financial position
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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