Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Wilson Company's fiscal year-end is December 31. The unadjusted trial balance as of December 31, 2014 appears below: Information necessary to prepare the year-end adjusting
Wilson Company's fiscal year-end is December 31. The unadjusted trial balance as of December 31, 2014 appears below: Information necessary to prepare the year-end adjusting entries appear below: The equipment is depreciated on a straight-line basis, no salvage, eight year life. The company estimates that $5, 500 of the outstanding accounts receivable probably will not be collected. Employee wages are paid twice a month and wages earned from the last two weeks in December will be paid in January 2015 total $1, 500. The $50,000 note payable was borrowed on October 1, 2014 at a 12% interest rate. Interest is to be paid annually on September 30. On March 1, 2014 the company lent a supplier $20,000 and a note was signed requiring the principal and interest at 8% to be paid on February 28, 2015. On April 1, 2014, the company paid an insurance company $6,000 for a two-year fire insurance policy. The entire $6,000 was debited to insurance expense. $800 of supplies remained on hand at 12/31/14. A customer paid Wilson $2,000 in December for a product to be manufactured and delivered in Jan 2015. On December 1, Wilson paid $2,000 rent for December & January at $1,000 per month. REQUIRED: Prepare an adjusting entry page with all the necessary entries (p. 129 - below lllus 3C-1) Prepare a 10-column worksheet (p. 128 - lllus 3C-1) Prepare an Income Statement, Statement of Retained Earnings, and a classified Balance Sheet. Assume no dividends were paid. (pp. 115-116; lllus 3-39, Ills 3-40, Ills 3-41) An adjusting entry page A 10-column worksheet regular view A 10-column worksheet formula view An Income Statement, Statement of Retained Earnings, and a classified Balance Sheet
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started