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The following transactions occurred during December 2020: December 1 Purchased equipment to be used in the factory. The purchase price is $165,000 in which S40,000

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The following transactions occurred during December 2020: December 1 Purchased equipment to be used in the factory. The purchase price is $165,000 in which S40,000 was paid for cash and the remainder is on account. The company paid the following expenditures in cash: sales commission of $1,000, insurance while in transit of $500, transportation expenses of S200; installation of $900: fire insurance of $100 and lubricant oil for maintenance of SSO. December 1 Purchased a one-year insurance and paid $3,600. December 5 Purchased a patent to produce a product worth $60,000. The amounts will be paid on 15 of January, 2021. December 15 Purchased a rights to extract diamond worth $10 million. The diamond is estimated to be around 500,000 tons per year. December 27 Paid salary of $10,000 for the month. December 31 Earned revenue worth $140.000; received $50,000 and the remaining will be received on January 5", 2021. At the end of the year, the following adjustment data is available: - 1. The building is being depreciated using the straight-line method over 30 years The salvage value is $20,000. 2. The equipment purchased on December 1, 2020 is being depreciated using double declining balance method over 6 years with salvage value of $1,200. 3. Company uses the allowance method, specifically, income statement method to calculate bad debts. Company estimates that 1.5% of total revenue will not be collected 4. A one-year insurance was prepaid on December 1, 2020. 5. The copyright was acquired on January 1, 2020 and has a useful life of 10 years. 6. One year notes payable dated June 1, 2020 and carries 10% interest rate. 7. The patent is for 20 years. 8. During the year, company extracted 50,000 tons of diamond. Instructions: - using Microsoft Excel. 1. Journalize transactions for the month of December 2. Post the journal to ledgers. 3. Prepare trial balance at December 31, 2020 4. Journalize adjusting entries at the end of the year. 5. Prepare income statement at the end of December 31, 2020, QUESTION The unadjusted trial balance of Jomana Corporation at December 1, 2020 is presented below: Credit Cash Account Receivable Inventory Land Buildings Copyright Allowance for doubtful account Debit 21,000 47,800 39,800 24,000 150,000 76,000 600 50,000 28,200 60,000 44,800 Accumulated depreciation building Account payable Notes payable Share Capital Dividend Service revenue Salary expenses Total 10,000 195,000 10,000 $378,600 $378,600

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