Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Unadjusted trial balnce, journal entries, T accounts then making the adjusted trial balance Financial Statement Homework #2 Name Gold, Inc. December 31, 2015 Unadjusted Trial

Unadjusted trial balnce, journal entries, T accounts then making the adjusted trial balance image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Financial Statement Homework #2 Name Gold, Inc. December 31, 2015 Unadjusted Trial balance 44,000 22,000 Cash Accounts Receivable Allowance for Doubtful Accounts 500 Short Term Note Receivable Interest Receivable Supplies on Hand Prepaid Insurance Inventory Vehicle Equipment 50,000 5,000 48,000 10,000 16,000 75,000 42,000 Accumulated Depreciation Accounts Payable 12,000 14,000 Unearned Revenue 2,000 Wages Payable Long-Term Notes Payable 45,000 106,000 Common Stock Retained Earnings (1/1/2015) 2,500 2,000 Dividends 503,500 Sales Sales Discounts 10,000 Cost of Goods Sold Delivery Expense Depreciation Expense Bad Debt Expense Rent Expense Insurance Expense Wages Expense 48,000 5,000 16,000 98,000 25,000 195,000 16,000 Supplies Expense Interest Revenue Loss on Disposal 6,500 Interest Expense Income Tax Expense 36,000 727,500 727,500 Total Page 1 of 8 Prepare adjusting journal entries using the unadjusten balance on the previous page and the information provided below. Use only th Part 1: account names provided on the previous page (do not create any new accoun names). 1. On Dec. 31, 2015 Gold, Inc, sold merchandise on account for $14,500 with a cost of $4,50 terms 3/10 net 30. 2. Gold, Inc. loaned Jackson Co. $50,000 (already on the TB) on Oct. 1, 2015 using a 6 month, 10% interest note. All interest and principal will be paid back at the end of the 6 months. Write the adjusting journal entry required by Gold, Inc. for its financial statements as of Dec. 31, 2015. 3. Uncollectable Accounts Receivables of $1,400 need to be written off for the year ended 2015. 4. Management estimates that of the remaining accounts receivable balance, $560 will be uncollectible. Record the adjustment based on this information. Hint: Use the AFDA balance AFTER the above write off during 2015. 5. Equipment was retired on Dec. 31, 2015. The equipment originally cost $30,000 and has related A/D of $24,000 as of Jan. 1, 2015. Additional depreciation of $2,000 needs to be recorded at Dec. 31, 2015. Update the depreciation below. (Record the retirement in #6). 6. And record the retirement of the equipment (from #5) including the gain or loss. Page 2 of 8 Part 2: Post the ad (Specific instructions: A journal entry. Wrts unadjusted bels journal en balane Part 2: Post the adjusting journal entries to t-accounts: Cnecific instructions: Above each T-account, write the account name of each account affected hy a urnal entry. Write in the unadjusted balance for each of these accounts (from page 1). the unadjusted balance might be a debit, a credit, or zero balance. Now you are ready to post your Journal entries from page 2 onto the corresponding T-accounts and then calculate adjusted balances.) adjusted trial Use only the y account $4,500 Page 3 of 8 Part 4: Pres (Be sure to Chapter 5. below do the Ince Part 3: Prepare the Adiusted Trial Balance (i.e., use ending balances after the previous journal entries are posted) Gold, Inc. December 31, 2015 Adjusted Trial balance Credit Debit Cash Accounts Receivable Allowance for Doubtful Accounts Short Term Note Receivable Interest Receivable Supplies on Hand Prepaid Insurance Inventory Vehicle Equipment Accumulated Depreciation Accounts Payable Unearned Revenue Wages Payable Long-Term Notes Payable Common Stock Retained Earnings (1/1/2015) Dividends Sales Sales Discounts Cost of Goods Sold Delivery Expense Depreciation Expense Bad Debt Expense Rent Expense Insurance Expense Wages Expense Supplies Expense Interest Revenue Loss on Disposal Interest Expense Income Tax Expense Total Page 4 of 8

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

Financial Accounting For Decision Makers

Authors: Peter Atrill, Eddie McLaney

9th Edition

1292251255, 9781292251257

More Books

Students also viewed these Accounting questions