Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The unadjusted trial balance of the Manufacturing Equitable at December 31, 2024, the end of its fiscal year, included the following account balances. Manufacturings 2024

The unadjusted trial balance of the Manufacturing Equitable at December 31, 2024, the end of its fiscal year, included the following account balances. Manufacturings 2024 financial statements were issued on April 1, 2025. Accounts receivable $ 116,500 Accounts payable 44,200 10% notes, payable to bank 642,000 Mortgage note payable 1,360,000 Other information: The bank notes, issued August 1, 2024, are due on July 31, 2025, and pay interest at a rate of 10%, payable at maturity. The mortgage note is due on March 1, 2025. Interest at 9% has been paid up to December 31 (assume 9% is a realistic rate). Manufacturing intended at December 31, 2024, to refinance the note on its due date with a new 10-year mortgage note. In fact, on March 1, Manufacturing paid $335,000 in cash on the principal balance and refinanced the remaining $1,025,000. Included in the accounts receivable balance at December 31, 2024, were two subsidiary accounts that had been overpaid and had credit balances totaling $22,750. The accounts were of two major customers who were expected to order more merchandise from Manufacturing and apply the overpayments to those future purchases. On November 1, 2024, Manufacturing rented a portion of its factory to a tenant for $37,500 per year, payable in advance. The payment for the 12 months ended October 31, 2025, was received as required and was credited to deferred revenue.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Implementing Standardized Work Training And Auditing

Authors: Alain Patchong

1st Edition

146656363X, 978-1466563636

More Books

Students also viewed these Accounting questions

Question

What is the right to be forgotten movement?

Answered: 1 week ago

Question

How does privilege differ from white supremacy?

Answered: 1 week ago