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What are the adjusting journal entries? I am having a hard time deciphering which to put as adjusted journal entries and which to put as
What are the adjusting journal entries? I am having a hard time deciphering which to put as adjusted journal entries and which to put as unadjusted journal entries.
Jack Tupp Auto Repair Company Trial Balance Spreadsheet Account Titles Cash Inventory Equipment Accounts Payable Common Stock Unearned Revenue Sales Revenue Cost Of Goods Sold Mortgage Payable Accounts Recievable Buildings Service Revenue Discount on Bonds Payable Bonds Payable Interest Expense Dividends Dividends Payable Loss on Bonds Redemption Prepaid Expense Expenses Totals Sales Returns and Allowances Sales Discounts Depreciation Expense - Equipment Accumulated Depreciation Depreciation Expense - Buildings Bad Debt Expense Allowances for Doubtful Accounts Totals Net Income/Loss Totals Trial Balance Dr. Cr. - - Debits equal credits Group No.: 11 - Adjustments Dr. Cr. Adjusted Trial Balance Dr. - - - Debits equal credits Debits equal credits ed Trial Balance Cr. - equal credits Income Statement Dr. - Cr. - Balance Sheet Dr. - Cr. - Group No.: 11 Jack Tupp Auto Repair Company General Jounral Number Date 1 9/1/2016 Account Name DR Cash Inventory Equipment Accounts Payable Common Stock (To record initial investment in business) CR ### ### ### ### ### 2 9/2/2016 Cash ### Unearned Revenue ### (To record the contract to repair delivery vans owned by Walter Melon Grocery) 3 9/3/2016 Cash $ 4,000.00 Sales Revenue $ 4,000.00 (To record the sales of carburetors to Phil Rupp Fuel) 4 9/3/2016 Cost of Goods Sold $ 1,965.00 Inventory (To record the remove of inventory) 5 9/4/2016 Inventory ### Accounts Payable (To record the purchase of inventory from Pep Boys) $ 1,965.00 ### 6 9/7/2016 Sales Returns & Allowances $ 1,600.00 Cash $ 1,600.00 (To record that Phil Rupp Fuel returned 10 damaged carburetors) 7 9/7/2016 Inventory $ 786.00 Cost of Goods Sold $ 786.00 (To record the reduction in COGS because of the return) 8 9/9/2016 Accounts Payable ### Inventory $ 675.00 Cash ### (To record the payment for 9/4 transaction and the 3% discount taken) 9 ### Accounts Receivable $ 6,400.00 Sales Revenue $ 6,400.00 (To record the sales of carburetors to Tim Burr Logging) 10 ### Cost of Goods Sold $ 5,501.00 Inventory (To record the remove of inventory) $ 5,501.00 11 ### Accounts Payable ### Cash ### (To record the payment of accounts payable due to Great Wattage) 12 ### Cash $ 6,208.00 Sales Discount $ 192.00 Accounts Payable $ 6,400.00 (To record payment from Tim Burr Logging for the 9/10 sale and 3% discount given) 13 ### Accounts Receivable ### Sales Revenue (To record the sales of carburetors to Iona Carr Autohaus) ### Cost of Goods Sold Inventory (To record the remove of inventory) ### 14 15 ### ### ### Cash ### Accounts Receivable (To record payment from Iona Carr Autohaus) ### 16 ### Unearned Revenue $ 8,000.00 Service Revenue $ 8,000.00 (To recorda repair work done on delivery vans owned by Walter Melon Grocery) 17 ### Cash Discount on Bonds Payable Bonds Payable (To record the issuance of bonds) ### $ 5,000.00 ### 18 ### Unearned Revenue $ 8,000.00 Service Revenue $ 8,000.00 (To record monthly repair work done on delivery vans owned by Walter Melon Grocery) 19 ### Building ### Mortgage Loan Payable (To record the purchase of building on mortgage) ### Accounts Receivable ### Sales Revenue (To record the sales of carburetors to Phil Rupp Fuel) ### 20 21 ### ### Cost of Goods Sold $ 8,252.00 Inventory (To record the remove of inventory) $ 8,252.00 22 ### Interest Expense $ 631.00 Cash $ 631.00 (To record payment to Eighth Mono Bank for November 2016 interest on the mortgage) 23 ### Unearned Revenue $ 8,000.00 Service Revenue $ 8,000.00 (To record monthly repair work done on delivery vans owned by Walter Melon Grocery) 24 ### Dividends $ 1,000.00 Dividends Payable (To record the declaration of dividends) $ 1,000.00 25 ### Interest Expense $ 3,375.00 Discount on Bonds Payable $ 250.00 Cash $ 3,125.00 (To record the payment of 3 months of bond interest at redemption) 26 ### Bonds Payable ### Loss on Redemption $ 9,750.00 Discount on Bonds Payable $ 4,750.00 Cash ### (To record the redemption of the bonds issued on 10/2) 27 ### Prepaid Expenses $ 2,400.00 Accounts Payable $ 2,400.00 (To record the check written to Monocle for six months of future advertising) 28 ### Mortgage Loan Payable ### Cash ### (To record the principal payment of the mortgage on the last day of each year) 29 ### Utility Expense $ 2,390.00 Accounts Payable $ 2,390.00 (To record the utility expenses at year-end which are not due and payable until 1/30/17) 30 ### Interest Expense $ 1,129.00 Mortgage Interest Payable $ 1,129.00 (To record payment to Eighth Mono Bank for December 2016 interest on the mortgage) 31 ### Bad Debt Expense $ 2,120.00 Allowance for Doubtful Accounts $ 2,120.00 (To record the part of sales estimated to be uncollectible) 32 33 ### ### Depreciation Expense ### Accumulated Deprecation -- Equipment (To record the depraciation of equipment) ### Depreciation Expense $ 4,235.00 Accumulated Deprecation -- Building (To record the depraciation of building) $ 4,235.00 Melon Grocery) d 3% discount given) Melon Grocery) y Walter Melon Grocery) nterest on the mortgage) y Walter Melon Grocery) e advertising) y of each year) nd payable until 1/30/17) terest on the mortgage) Group No.: 11 Trial Balance Spreadsheet Account Titles Cash Accounts Receivable Inventory Equipment Accounts Payable Totals Trial Balance Dr. Cr. 124,850 25,300 7,576 Adjustments Dr. Cr. 52500 210,226 10500 Adjusted Trial Balance Dr. Cr. 124,850 25,300 7,576 42,000 - Totals Net Income/Loss Totals - Debits don't equal credits 10,500 199,726 - Debits don't equal credits Debits don't equal credits Income Statement Dr. Cr. - - Balance Sheet Dr. Cr. - - Group No.: 11 Jack Tupp Auto Repair Company Balance Sheet As of 31-Dec-16 ASSETS: Current Assets Cash - (Enter this as a negative number) - (Enter this as a negative number) Total Assets - LIABILITIES AND STOCKHOLDERS' EQUITY - - Total Liabilities and Stockholders' Eq - Congratulations, it balances! egative number) egative number) it balances! Group No.: 11 Jack Tupp Auto Repair Company Income Statement For the Year Ended 31-Dec-16 Services and sales revenue Sales Revenue Less: Sales Returns & Allowance Less: Sales Discount Less: Net Sales Revenue 60,800 (1,600) (1,767) (Enter this as a negative number) (Enter this as a negative number) (Enter this as a negative number) 57,433 Cost of goods sold 27,899 Gross Profit 29,534 Operating Expenses Selling expenses Depreciation Expenses Advertising Expenses Interest Expenses 2,400 3,756 6,156 Adminsitrative expenses Telephone Expenses Fuel Expenses Utilities Expenses Postage Expenses 466 849 955 120 2,390 Total Operating Expenses Income From Operation 8,546 20,988 Other Revenues and Gains Other Expenses and Losses (Enter this as a positive number) (Enter this as a negative number) (Enter this as a negative number) Net Income 20,988 egative number) egative number) egative number) ositive number) egative number) egative number) Group No.: 11 JACK TUPP AUTO REPAIR Statement of Cash Flows For the Year Ended - - - - JACK TUPP AUTO REPAIR Jack Tupp Auto Repair opened on September 1, 2016. The following account balances existed: Cash $ Carburetor Inventory (210 units @ $65/unit) Equipment Accounts payable (Great Wattage) Common stock (100,000 shares) 85,192 13,650 52,500 19,000 100,000 The following events and transactions occurred through December 31, 2016. 9/2 9/3 9/4 9/7 9/9 9/10 9/15 9/16 9/17 9/29 10/2 11/13 11/17 12/1 12/28 12/29 12/30 12/31 Signed a 9-month contract to repair delivery vans owned by Walter Melon Grocery for $72,000, which was paid immediately. Work is to be performed equally each month. Sold 25 carburetors to Phil Rupp Fuel for $160.00 each. Phil Rupp Fuel paid cash. Purchased 250 additional carburetors for its inventory, on account, from Pep Boys for $22,500. Terms were 3/10, n/20. Phil Rupp Fuel returned 10 damaged carburetors, and received a refund. Paid the correct amount on the invoice related to the 9/4 transaction. Sold 70 carburetors to Tim Burr Logging for $6,400, terms of 3/10, n/30. Paid the accounts payable balance due to Great Wattage of $19,000 in full. Received a check from Tim Burr Logging for the correct amount related to the 9/10 sale. Sold 165 carburetors to Iona Carr Autohaus for its new dealership for $31,500, on account. Payment terms were 5/10, n/20. Received a check from Iona Carr Autohaus for the correct amount related to the 9/17 sale. Issued 250 5% $1,000 face-value 5-year bonds to new investors at 98. The bonds pay interest semi-annually on January 1 and July 1. Purchased a building for $338,800. The building was purchased with a 30-year mortgage from the Eighth Mono Bank, bearing interest at 4% per annum. A previous month's accrued interest is due and payable on the first day of the next month. Make sure to prorate any interest due for November 2016 based on a 12-month year. (Hint: it's 17 days of interest). Principal payments of $18,500 are to be paid on the last day of each year. Sold 105 carburetors to Phil Rupp Fuel for $180.00 each, terms 5/10, net 30. Pays the Eighth Mono Bank for November 2016 interest owed on the mortgage from 11/13. Declared $1,000 of dividends to shareholders, payable on 1/2/2017. Redeemed all of the bonds issued on 10/2 at 102. Assume 3 months of interest were paid at this time on these redeemed bonds. Wrote a check to the Monocle for six months of future advertising for $2,400. Incurred the following expenses at year-end which are not due and payable until 1/30/17: Telephone Fuel $ 466 849 Utilities Postage $ 955 120 1 2017 Machiavelli Chao | Unauthorized use, dissemination or duplication of this material is strictly prohibited Other additional information: 1) Don't forget to journalize the opening balances as of September 1, 2016. However, when doing the Statement of Cash Flows, the beginning balance as of January 1, 2016, for all accounts is zero. 2) Presume the same unit costs apply to all items of inventory when calculating cost of goods sold. Jack Tupp Auto Repair uses the periodic inventory system and the average cost method. 3) Don't forget to accrue the mortgage interest owed for December 2016, and to record the principal payment made at the end of the year. 4) Don't forget to post adjusting entries for any necessary items, including bond interest. 5) Allowance for doubtful accounts is calculated using the percentage of sales method. As of December 31, 2016, the percentage of sales estimated to be uncollectible is 2.5%. 6) All common stock is owned by Jack Tupp. Par value is $1.00 per share. 7) For all equipment, depreciation is calculated using units-of-activity method, with a total estimated useful life of 6,000 units. 1,200 units were used in 2016. (Equipment owned on September 1, 2016 of $52,500 has a salvage value is $1,500.) 8) For the building, depreciation is calculated using double-declining balance with a 20-year useful life. Estimated salvage value is $28,800. (For 2016, calculate depreciation for 1 months) 9) Don't forget to allocate liabilities between current liabilities and long-term liabilities. 10) Other than the transactions listed in the facts, assume no other cash or check transactions have occurred. There are no outstanding checks nor deposits in transit at year-end. 11) Round all amounts to the nearest dollar. Instructions: 1) 2) 3) Using the General Journal, journalize all transactions which occurred in 2016. (Don't forget to journalize the beginning balances, too.) Post all journal entries to the Trial Balance. Complete the: a. Balance Sheet as of December 31, 2016 b. Income Statement for the year ending December 31, 2016 c. Statement of Cash Flows for the year ending December 31, 2016 2 2017 Machiavelli Chao | Unauthorized use, dissemination or duplication of this material is strictly prohibitedStep by Step Solution
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