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The following items were selected from among the transactions completed by Sherwood Co . during the current year: Mar. 1 Purchased merchandise on account from
The following items were selected from among the transactions completed by Sherwood Co during the current year: Mar. Purchased merchandise on account from Kirkwood Co $ terms n Issued a day, note for $ to Kirkwood Co on account. Apr. Paid Kirkwood Co the amount owed on the note of March Jun. Borrowed $ from Triple Creek Bank, issuing a day, note. Jul. Purchased tools by issuing a $day note to Poulin Co which discounted the note at the rate of Paid Triple Creek Bank the interest due on the note of June and renewed the loan by issuing a new day, note for $Journalize both the debit and credit to the notes payable account. Aug. Paid Triple Creek Bank the amount due on the note of July Paid Poulin Co the amount due on the note of July Dec. Purchased equipment from Greenwood Co for $ paying $ cash and issuing a series of ten notes for $ each, coming due at day intervals. Settled a product liability lawsuit with a customer for $ payable in January. Accrued the loss in a litigation claims payable account. Paid the amount due to Greenwood Co on the first note in the series issued on December Required: Journalize the entries to record the transactions, and post to the general ledger. Assume a day year. I have posted the Summary Journal that has been prepared to capture the transactions from the normal course of business in Complete the worksheet. Information for the adjusting entries are as follows: a Product warranty cost, $ b Accrue interest on the nine remaining notes owed to Greenwood Co Assume a day year. c The balance in the prepaid insurance account should be $ d Depreciation is calculated based on the following: The building has a $ salvage value, year life, and is adjusted using straightline depreciation The office equpment has a year life and will be depreciated using the double declining balance method with no anticipated salvage value. The tools have a year life, $ salvage value and will be depreciated using the double declining balance method e The note receivable balance informations is in the General Ledger is a month note received on October f Inventory of supplies on hand shows a balance of $ g Payroll for the month of December will be paid on January Salaries for the month not yet paid are $ The employer and employee is responsible for Social Security tax at a rate of and Medicare tax at a rate of No employees have met the Social Security maximum. Round your calculations to the whole dollar. Federal income tax is withheld from employees pay at the rate of Pensions are accrued at of pay and are employer funded. Journalize the adjusting entries and post them to the general ledger. Prepare a multistep income statement for the year ended December Prepare the statement of stockholders equity for the year ended December Prepare the balance sheet dated December Journalize and post the closing entries. Prepare a postclosing trial balance.
The following items were selected from among the transactions completed by Sherwood Co during the current year:
Mar. Purchased merchandise on account from Kirkwood Co $ terms n
Issued a day, note for $ to Kirkwood Co on account.
Apr. Paid Kirkwood Co the amount owed on the note of March
Jun. Borrowed $ from Triple Creek Bank, issuing a day, note.
Jul. Purchased tools by issuing a $day note to Poulin Co which discounted the note at the rate of
Paid Triple Creek Bank the interest due on the note of June and renewed the loan by issuing a new day, note
for $Journalize both the debit and credit to the notes payable account.
Aug. Paid Triple Creek Bank the amount due on the note of July
Paid Poulin Co the amount due on the note of July
Dec. Purchased equipment from Greenwood Co for $ paying $ cash and issuing a series of ten notes
for $ each, coming due at day intervals.
Settled a product liability lawsuit with a customer for $ payable in January. Accrued the loss in a litigation claims payable account.
Paid the amount due to Greenwood Co on the first note in the series issued on December
Required:
Journalize the entries to record the transactions, and post to the general ledger. Assume a day year.
I have posted the Summary Journal that has been prepared to capture the transactions from the normal course of business in
Complete the worksheet. Information for the adjusting entries are as follows:
a Product warranty cost, $
b Accrue interest on the nine remaining notes owed to Greenwood Co Assume a day year.
c The balance in the prepaid insurance account should be $
d Depreciation is calculated based on the following:
The building has a $ salvage value, year life, and is adjusted using straightline depreciation
The office equpment has a year life and will be depreciated using the double declining balance method with no anticipated salvage value.
The tools have a year life, $ salvage value and will be depreciated using the double declining balance method
e The note receivable balance informations is in the General Ledger is a month note received on October
f Inventory of supplies on hand shows a balance of $
g Payroll for the month of December will be paid on January
Salaries for the month not yet paid are $ The employer and employee is responsible for Social Security tax at a rate of
and Medicare tax at a rate of No employees have met the Social Security maximum. Round your calculations to the whole dollar.
Federal income tax is withheld from employees pay at the rate of Pensions are accrued at of pay and are employer funded.
Journalize the adjusting entries and post them to the general ledger.
Prepare a multistep income statement for the year ended December
Prepare the statement of stockholders equity for the year ended December
Prepare the balance sheet dated December
Journalize and post the closing entries.
Prepare a postclosing trial balance.
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