Prepare journal entries for the above transactions. Aylmer Industries Inc. (Aylmer) has been in business since 2018.
Fantastic news! We've Found the answer you've been seeking!
Question:
Prepare journal entries for the above transactions.
Transcribed Image Text:
Aylmer Industries Inc. (Aylmer) has been in business since 2018. Aylmer has two main business segments. This first segment is the construction of large-scale projects. In 2020, Aylmer had two large construction projects in process. The other segment is the purchase and sale of small machines needed for the construction industry. There are 250,000 common shares outstanding of this publicly traded company. Since Aylmer is a publicly traded company, it follows IFRS. There are no preferred shares outstanding. The trial balance at December 31, 2020 and December 31, 2019 are provided for comparison purposes on the tab "Trial Balance" in the excel file. Use this excel worksheet to post journal entries required, to ensure that you remain in balance. The worksheet should also be used to provide a basis of preparing the financial statements at December 31, 2020. Ignore income taxes for this project. Aylmer posted transactions throughout the year and the trial balance in excel was prepared. Aylmer's fiscal year-end is December 31. As a year-end review, management of Aylmer discovered that the following items have NOT been recorded and are NOT reflected in the trial balance provided at December 31, 2020: Analyze and review the following items (a-n) and determine the appropriate journal entry. Record the journal entry in the excel file labelled "journal entries". Use the various tabs in the excel file to record calculations and support for your journal entries. TRANSACTIONS NOT INCLUDED IN THE TRIAL BALANCE: a. Calculate bad debt On December 31, after many attempts at collecting the outstanding balance of Copper Gallery, the controller decided to write off that balance. Aylmer calculates bad debt on trade receivables only, not on project receivables. Bad debt is estimated to be: 0-30 days 1% 31-60 days 5% 61-90 days 7.5% 91-120 days 10% Over 120 days 15% In the excel spreadsheet, see the tab labelled "Trade Accounts Receivable Detail" to perform any necessary calculations. Aylmer Industries Inc. (Aylmer) has been in business since 2018. Aylmer has two main business segments. This first segment is the construction of large-scale projects. In 2020, Aylmer had two large construction projects in process. The other segment is the purchase and sale of small machines needed for the construction industry. There are 250,000 common shares outstanding of this publicly traded company. Since Aylmer is a publicly traded company, it follows IFRS. There are no preferred shares outstanding. The trial balance at December 31, 2020 and December 31, 2019 are provided for comparison purposes on the tab "Trial Balance" in the excel file. Use this excel worksheet to post journal entries required, to ensure that you remain in balance. The worksheet should also be used to provide a basis of preparing the financial statements at December 31, 2020. Ignore income taxes for this project. Aylmer posted transactions throughout the year and the trial balance in excel was prepared. Aylmer's fiscal year-end is December 31. As a year-end review, management of Aylmer discovered that the following items have NOT been recorded and are NOT reflected in the trial balance provided at December 31, 2020: Analyze and review the following items (a-n) and determine the appropriate journal entry. Record the journal entry in the excel file labelled "journal entries". Use the various tabs in the excel file to record calculations and support for your journal entries. TRANSACTIONS NOT INCLUDED IN THE TRIAL BALANCE: a. Calculate bad debt On December 31, after many attempts at collecting the outstanding balance of Copper Gallery, the controller decided to write off that balance. Aylmer calculates bad debt on trade receivables only, not on project receivables. Bad debt is estimated to be: 0-30 days 1% 31-60 days 5% 61-90 days 7.5% 91-120 days 10% Over 120 days 15% In the excel spreadsheet, see the tab labelled "Trade Accounts Receivable Detail" to perform any necessary calculations.
Expert Answer:
Related Book For
Taxation of Individuals 2017
ISBN: 9781259548666
8th edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
Posted Date:
Students also viewed these accounting questions
-
The following trial balance was prepared from the ledger accounts of Smith Inc.: The accountant for Smith, Inc., made the following errors during May 2013: 1. The cash purchase of land for $3,000 was...
-
The following trial balance was prepared from the ledger accounts of Zumba Company: When the trial balance failed to balance, the accountant reviewed the records and discovered the following errors:...
-
The following trial balance was prepared from the ledger accounts of Ricardo Company: When the trial balance failed to balance, the accountant reviewed the records and discovered the following...
-
Roasters Limited is a coffee-blending firm. It produces a special blend of coffee known as "Utopia Blend" by mixing two grades of coffee "AB" and "QP" as follows: Material AB QP Standard mix ratio AB...
-
Swasey Fabrication, Inc., manufactures frames for bicycles. Each frame passes through three processes: Cutting, Welding, and Painting. In September, the Cutting Department of the Tulsa, Oklahoma,...
-
The water in a shallow pond heats up during the day and cools down during the night. Heat transfer by radiation, conduction and convection with the ambient thus cycles the water temperature. Is such...
-
When to use the official form complaints?
-
A taxi company manager is trying to decide whether the use of radial tires instead of regular belted tires improves fuel economy. Twelve cars were equipped with radial tires and driven over a...
-
describe and summarize some of the requirements for an ETOPS Continuous Airworthiness Maintenance Program and then answer the following: Given the potential increased monetary costs of such programs,...
-
Anyone whos ever watched late-night TV knows how many people want to lose weight the easy way. On the basis of recent medical studies, there may be such a thing. Glaxo Smith Kline bought the drug...
-
1. A 33-month $6000 treasury bill with discount rate 5.94% was sold in 2009. Find a. the price of the T- bill, and b. the actual interest rate paid by the Treasury. a. The price of the T-bill is...
-
What are the responsibilities of the AICPA's Professional Ethics Division?
-
When light falls on a balanced detector (i.e., a detector pair, with one detector output subtracted from the other's output), the output current is proportional to the difference of the intensities...
-
a. What is the purpose of professional ethics? b. How are professional ethics imposed?
-
What are the six steps in a general framework for ethical decision making?
-
What is the difference between the ethical absolutists and ethical relativists schools of thought?
-
Which statement regarding coefficient of variation is NOT true? Multiple Choice is known as the trade-off between market risk and return. is a common relative measure of risk vs. reward. is the...
-
One study found that the elderly who do not have children dissave at about the same rate as the elderly who do have children. What might this finding imply about the reason the elderly do not dissave...
-
Grayson is in the 25 percent tax rate bracket and has the sold the following stocks in 2016: a. What is Grayson's net short-term capital gain or loss from these transactions? b. What is Grayson's net...
-
Rita is a self-employed taxpayer who turns 39 years old at the end of the year (2016). During 2016, her net Schedule C income was $300,000.This was her only source of income. This year, Rita is...
-
Alisha, who is single, owns a sole proprietorship in which she works as a management consultant. She maintains an office in her home where she meets with clients, prepares bills, and performs other...
-
List each of the six branches of AI and briefly explain each one.
-
What are the three components of an Expert System (ES) program? Explain what each component does.
-
When training a machine learning application, developers can use one of three different approaches: supervised learning, unsupervised learning, and reinforcement learning. Describe each strategy and...
Study smarter with the SolutionInn App