2. Determine the balances of the accounts affected by the adjusting entries ("T" Accounts) and prepare an adjusted trial balance. 4. Pedroni Oil Company purchased packaging equipment on January 8 for $72,000. The equipment was expected to have a useful life of three years or 18,000 operating hours, and a residual value of $4,500. The equipment was used for 7,600 hours during year 1, 6,000 hours in year 2, and 4,400 hours in year 3. 3. Prepare an Income Statement, Balance Sheet, and Statement of Owners Equity. Determine the amount of depreciation expense for the three years ending December 31, by the Straight line method, The units of activity method, and the double declining balance method. Finally determine the total amount of depreciation expense for the three years by each method. 5. On July 31, 2019 the balances of the accounts appearing in the ledger of Pedroni Interiors company a furniture wholesales, are as follows. Ray Zorzi - Capital Ray Zorzi- Drawing 000'0s Accumulated Depreciation - Building $365,000 Administrative Expenses Building Cash 1,437,000 4,500 Sales Sales tax Payable 000' Selling Expense 000'09, 000'SL Store Supplies Cost of Merchandise Sold 000' 000'9 Store Supplies Expense 21,500 Interest Expense Merchandise Inventory 000'ST 000'00t Notes Payable Instructions: Prepare the July 31, 2019 closing entries for Pedroni Interiors Company iPhon r has th theck c r cash. In pple's ca marize a sh' accoc ing arran y) to analy Bununb October 31, 2019 the end of the clerk the Pedroni Fuel is a oil and by On me-Citblikopez Harraquin following unadjusted trial balance Pedroni Fuel Company Unadjusted Trial Balance October 31, 2019 Credit Debit 7,500 38,400 Cash Accounts Receivable Prepaid Insurance Supplies Land 7,200 1,980 112,500 300,250 Building Accumulated Depreciation- Building Equipment Accumulated Depreciation - Equipment Accounts Payable 87,550 135,300 97,950 12,150 6,750 Unearned Rent Ray Zorzi- Capital Ray Zorzi – Drawing Fee's Earned Salary & Wages Expense Utilities Expense Advertising Expense Repairs Expense Miscellaneous Expense 000' 000 009 193,370 42,375 22,800 17,250 6,075 Total Year End Adjustment Unexpired insurance at October 31 = $600 Supplies on hand on October 31 = $675-5 Depreciation of Building for the year = $12,000 Unearned Rent on October 31 = $2,250 Accrued Salary and Wages at October 31 = $2,800 ees earned but unbilled on October 31 = $10,050 %3D tructions: nalize the adjusting entries using the following additional accounts: Salaries & Wages Payable, Rent nue, Insurance Expense, Depreciation Expense - Building, Depreciation Expense - Equipment, and ies Expense.

2. Determine the balances of the accounts affected by the adjusting entries ("T" Accounts) and prepare an adjusted trial balance. 4. Pedroni Oil Company purchased packaging equipment on January 8 for $72,000. The equipment was expected to have a useful life of three years or 18,000 operating hours, and a residual value of $4,500. The equipment was used for 7,600 hours during year 1, 6,000 hours in year 2, and 4,400 hours in year 3. 3. Prepare an Income Statement, Balance Sheet, and Statement of Owners Equity. Determine the amount of depreciation expense for the three years ending December 31, by the Straight line method, The units of activity method, and the double declining balance method. Finally determine the total amount of depreciation expense for the three years by each method. 5. On July 31, 2019 the balances of the accounts appearing in the ledger of Pedroni Interiors company a furniture wholesales, are as follows. Ray Zorzi - Capital Ray Zorzi- Drawing 000'0s Accumulated Depreciation - Building $365,000 Administrative Expenses Building Cash 1,437,000 4,500 Sales Sales tax Payable 000' Selling Expense 000'09, 000'SL Store Supplies Cost of Merchandise Sold 000' 000'9 Store Supplies Expense 21,500 Interest Expense Merchandise Inventory 000'ST 000'00t Notes Payable Instructions: Prepare the July 31, 2019 closing entries for Pedroni Interiors Company iPhon r has th theck c r cash. In pple's ca marize a sh' accoc ing arran y) to analy Bununb October 31, 2019 the end of the clerk the Pedroni Fuel is a oil and by On me-Citblikopez Harraquin following unadjusted trial balance Pedroni Fuel Company Unadjusted Trial Balance October 31, 2019 Credit Debit 7,500 38,400 Cash Accounts Receivable Prepaid Insurance Supplies Land 7,200 1,980 112,500 300,250 Building Accumulated Depreciation- Building Equipment Accumulated Depreciation - Equipment Accounts Payable 87,550 135,300 97,950 12,150 6,750 Unearned Rent Ray Zorzi- Capital Ray Zorzi – Drawing Fee's Earned Salary & Wages Expense Utilities Expense Advertising Expense Repairs Expense Miscellaneous Expense 000' 000 009 193,370 42,375 22,800 17,250 6,075 Total Year End Adjustment Unexpired insurance at October 31 = $600 Supplies on hand on October 31 = $675-5 Depreciation of Building for the year = $12,000 Unearned Rent on October 31 = $2,250 Accrued Salary and Wages at October 31 = $2,800 ees earned but unbilled on October 31 = $10,050 %3D tructions: nalize the adjusting entries using the following additional accounts: Salaries & Wages Payable, Rent nue, Insurance Expense, Depreciation Expense - Building, Depreciation Expense - Equipment, and ies Expense.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 18E: Errors During the course of your examination of the financial statements of Burnett Co., a new...

See similar textbooks