Answered step by step
Verified Expert Solution
Link Copied!

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

image text in transcribed

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

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 Innovation Regulation And Crises In History

Authors: Harold James

1st Edition

0367669528, 978-0367669522

More Books

Students also viewed these Finance questions

Question

Make the case for natural monopolies.

Answered: 1 week ago

Question

Azure Analytics is a suite made up of which three tools?

Answered: 1 week ago