Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

URGENT!!!!!! Plz help Plz help me to correct my answer!!!!! The following trial balance before adjustments is for Snowcrest Ltd. on December 31, 2020: Credits

URGENT!!!!!! Plz help

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Plz help me to correct my answer!!!!!

The following trial balance before adjustments is for Snowcrest Ltd. on December 31, 2020: Credits Debits $ 10,700 28,000 2,900 2,100 56,000 Cash Inventory Advances to employees Supplies Equipment Accumulated depreciation, equipment Unearned revenue Bank loan payable Common shares Retained earnings Sales revenue Cost of goods sold Wages expense Repairs and maintenance expense Rent expense Miscellaneous expenses Dividends declared Totals $ 4,000 6,900 24,000 40,000 8,100 236,000 136,000 34,900 24,100 6,600 14,300 3,400 $319,000 $319,000 Data for adjusting entries: 1. As at December 31, 2020, 80% of the wages that had been paid in advance to the salespeople had been earned. 2. A count of the supplies at year end revealed that $600 of supplies were still on hand. 3. Depreciation on the equipment for 2020 was $1,000. 4. The unearned revenue was advance receipts for future deliveries of goods. By December 31, 2020, two-thirds of these deliveries had been made. 5. The bank loan was a six-month loan taken out on October 1, 2020. The interest rate on the loan is 9%, but the interest is not due to be paid until the note is repaid on April 1, 2021. 6. Wages owed at year end and not yet recorded were $500. 7. The rent expense figure includes $900 paid in advance for January 2021. 8. Income tax for the year should be calculated using a tax rate of 25%. (Hint: After you finish the other adjusting entries, determine the income before income tax and then calculate the tax as 25% of this amount.) Prepare the adjusting entries for the year 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Round answers to the nearest whole dollar, e.g. 5,275.) Debit Credit No. Account Titles and Explanation 1. Wages Expense 2320 Advance to employees 2320 2. Supplies Expense 1500 Supplies 1500 3. Depreciation Expense 1000 Accumulated Depreciation Equipment 1000 4. Unearned revenue 2300 Sales Revenue 2300 5. Interest Expense 1080 Interest payable 1080 6. Wages Expense 500 5. Interest Expense 1080 Interest payable 1080 6. Wages Expense 500 Wages payable 500 7. Prepaid Rent 900 Rent expense 900 8. Income Tax Expense 3375 Income Tax payable 3375

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

Auditing Theory And Practice

Authors: C. William Thomas

1st Edition

0534013880, 978-0534013882

More Books

Students also viewed these Accounting questions

Question

b. What groups were most represented? Why do you think this is so?

Answered: 1 week ago