Prepare journal entries for the transactions listed above and adjusting entries. (Credit account titles are automatically indented when 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. Record journal entries in the order presented in the problem.) Marigold Corp.'s unadjusted trial balance at December 1, 2017, is presented below. Date Account Titles and Explanation Debit Credit Debit Credit Dec. 2 Cash $27,500 Accounts Receivable 37,000 Dec. 15 v Notes Receivable 9,700 Interest Receivable (To record depreciation expense on equipment.) Inventory 36,300 Prepaid Insurance 3,900 Land 20,600 Buildings 162,900 (To record sale of equipment.) Dec. 23 Equipment 62,000 Patent 9,360 (To record sales revenue.) $500 Allowance for Doubtful Accounts 54,300 Accumulated Depreciation-Buildings (To record cost of goods sold.) 24,800 Accumulated Depreciation-Equipment Dec. 31 Accounts Payable 28,400 Salaries and Wages Payable Dec. 31 1. Notes Payable (due April 30, 2018) 12,200 Income Taxes Payable 2. Interest Payable 3. Notes Payable (due in 2023) 35,300 Common Stock 59,600 4. Retained Earnings 64,660 Dividends 13,500 5. Sales Revenue 905,000 0. 6. Interest Revenue Gain on Disposal of Plant Assets 7. Bad Debt Expense Cost of Goods Sold 636,000 8. Depreciation Expense Income Tax Expense 9. Insurance Expense 10. Interest Expense Other Operating Expenses 61,000 Amortization Expense eTextbook and Media Salaries and Wages Expense 105,000 Total $1,184,760 $1,184,760 The following transactions occurred during December. Dec. Purchased equipment for $16,200, plus sales taxes of $600 (paid in cash). 2 Marigold sold for $3,550 equipment which originally cost $4,800. Accumulated depreciation on this equipment at January 1, 2017, was $1,850; 2017 depreciation prior to the sale of equipment was $480. 15 Marigold sold for $5,150 on account inventory that cost $3,460. 23 Salaries and wages of $6,630 were paid. Adjustment data: 1. Marigold estimates that uncollectible accounts receivable at year-end are $3,950. 2. The ntereceivable is a one-year, 8% note dated April 1, 2017. No intercst has been recorded. 3. The balance in prepaid insurance represents payment of a $3,900, 6-month premium on September 1, 2017. 4. The building is being depreciated using the straight-line method over 30 years. The salvage value is $30,600. 5. The equipment owned prior to this year is being depreciated using the straight-line method over 5 years. The salvage value is 10% of cost. 6. The equipment purchased on December 2, 2017, is being depreciated using the straight-line method over 5 years, with a salvage value of $1,920. 7. The patent was acquired on January 1, 2017, and has a useful life of 9 years from that date. 8. Unpaid salaries at December 31, 2017, total $2,140. 9. Both the short-term and long term notes payable are dated January 1, 2017, and carry a 10% interest rate. All interest is payable in the next 12 months. 10 Income tax expense was $12,200. It was unpaid at December 31.

Prepare journal entries for the transactions listed above and adjusting entries. (Credit account titles are automatically indented when 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. Record journal entries in the order presented in the problem.) Marigold Corp.'s unadjusted trial balance at December 1, 2017, is presented below. Date Account Titles and Explanation Debit Credit Debit Credit Dec. 2 Cash $27,500 Accounts Receivable 37,000 Dec. 15 v Notes Receivable 9,700 Interest Receivable (To record depreciation expense on equipment.) Inventory 36,300 Prepaid Insurance 3,900 Land 20,600 Buildings 162,900 (To record sale of equipment.) Dec. 23 Equipment 62,000 Patent 9,360 (To record sales revenue.) $500 Allowance for Doubtful Accounts 54,300 Accumulated Depreciation-Buildings (To record cost of goods sold.) 24,800 Accumulated Depreciation-Equipment Dec. 31 Accounts Payable 28,400 Salaries and Wages Payable Dec. 31 1. Notes Payable (due April 30, 2018) 12,200 Income Taxes Payable 2. Interest Payable 3. Notes Payable (due in 2023) 35,300 Common Stock 59,600 4. Retained Earnings 64,660 Dividends 13,500 5. Sales Revenue 905,000 0. 6. Interest Revenue Gain on Disposal of Plant Assets 7. Bad Debt Expense Cost of Goods Sold 636,000 8. Depreciation Expense Income Tax Expense 9. Insurance Expense 10. Interest Expense Other Operating Expenses 61,000 Amortization Expense eTextbook and Media Salaries and Wages Expense 105,000 Total $1,184,760 $1,184,760 The following transactions occurred during December. Dec. Purchased equipment for $16,200, plus sales taxes of $600 (paid in cash). 2 Marigold sold for $3,550 equipment which originally cost $4,800. Accumulated depreciation on this equipment at January 1, 2017, was $1,850; 2017 depreciation prior to the sale of equipment was $480. 15 Marigold sold for $5,150 on account inventory that cost $3,460. 23 Salaries and wages of $6,630 were paid. Adjustment data: 1. Marigold estimates that uncollectible accounts receivable at year-end are $3,950. 2. The ntereceivable is a one-year, 8% note dated April 1, 2017. No intercst has been recorded. 3. The balance in prepaid insurance represents payment of a $3,900, 6-month premium on September 1, 2017. 4. The building is being depreciated using the straight-line method over 30 years. The salvage value is $30,600. 5. The equipment owned prior to this year is being depreciated using the straight-line method over 5 years. The salvage value is 10% of cost. 6. The equipment purchased on December 2, 2017, is being depreciated using the straight-line method over 5 years, with a salvage value of $1,920. 7. The patent was acquired on January 1, 2017, and has a useful life of 9 years from that date. 8. Unpaid salaries at December 31, 2017, total $2,140. 9. Both the short-term and long term notes payable are dated January 1, 2017, and carry a 10% interest rate. All interest is payable in the next 12 months. 10 Income tax expense was $12,200. It was unpaid at December 31.

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter5: Accounting Systems

Section: Chapter Questions

Problem 19E: After Bunker Hill Assay Services Inc. had completed all postings for March in the current year...

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