Based on the following selected data, journalize the adjusting entries as of December 31 of the current year. If no entry is required, select "No entry required" from the dropdown and leave the amount boxes blank. If an amount box does not require an entry, leave it blank. Office supplies used during the year, $3,920. Date Description Debit Credit Dec. 31 fill in the blank 20 fill in the blank 21 fill in the blank 23 fill in the blank 24 Depreciation is computed as follows: Asset Cost Residual Value Acquisition Date Useful Life in Years Depreciation Method Used Buildings $900,000 $ 0 January 2 50 Double-declining-balance Office Equip. 246,000 26,000 January 3 5 Straight-line Store Equip. 112,000 12,000 July 1 10 Straight-line Date Description Debit Credit Dec. 31 fill in the blank 26 fill in the blank 27 fill in the blank 29 fill in the blank 30 fill in the blank 32 fill in the blank 33 fill in the blank 35 fill in the blank 36 fill in the blank 38 fill in the blank 39 fill in the blank 41 fill in the blank 42 A patent costing $48,000 when acquired on January 2 has a remaining legal life of 10 years and is expected to have value for 8 years. Date Description Debit Credit Dec. 31 fill in the blank 44 fill in the blank 45 fill in the blank 47 fill in the blank 48 The cost of mineral rights was $546,000. Of the estimated deposit of 910,000 tons of ore, 50,000 tons were mined and sold during the year. Date Description Debit Credit Dec. 31 fill in the blank 50 fill in the blank 51 fill in the blank 53 fill in the blank 54 Vacation pay expense for December, $10,500. Date Description Debit Credit Dec. 31 fill in the blank 56 fill in the blank 57 fill in the blank 59 fill in the blank 60 A product warranty was granted beginning December 1 and covering a one-year period. The estimated cost is 4% of sales, which totaled $1,900,000 in December. Date Description Debit Credit Dec. 31 fill in the blank 62 fill in the blank 63 fill in the blank 65 fill in the blank 66 Interest was accrued on the note receivable received on October 17 ($100,000, 90-day, 9% note). Assume 360 days per year. Date Description Debit Credit Dec. 31 fill in the blank 68 fill in the blank 69 fill in the blank 71 fill in the blank 72
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
Comprehensive Problem 3
Based on the following selected data, journalize the
If no entry is required, select "No entry required" from the dropdown and leave the amount boxes blank. If an amount box does not require an entry, leave it blank.
Office supplies used during the year, $3,920.
| Date | Description | Debit | Credit |
|---|---|---|---|
| Dec. 31 | fill in the blank 20 | fill in the blank 21 | |
| fill in the blank 23 | fill in the blank 24 |
| Asset | Cost | Residual Value |
Acquisition Date |
Useful Life in Years |
Depreciation Method Used |
||||||
| Buildings | $900,000 | $ 0 | January 2 | 50 | Double-declining-balance | ||||||
| Office Equip. | 246,000 | 26,000 | January 3 | 5 | Straight-line | ||||||
| Store Equip. | 112,000 | 12,000 | July 1 | 10 | Straight-line |
| Date | Description | Debit | Credit |
|---|---|---|---|
| Dec. 31 | fill in the blank 26 | fill in the blank 27 | |
| fill in the blank 29 | fill in the blank 30 | ||
| fill in the blank 32 | fill in the blank 33 | ||
| fill in the blank 35 | fill in the blank 36 | ||
| fill in the blank 38 | fill in the blank 39 | ||
| fill in the blank 41 | fill in the blank 42 |
A patent costing $48,000 when acquired on January 2 has a remaining legal life of 10 years and is expected to have value for 8 years.
| Date | Description | Debit | Credit |
|---|---|---|---|
| Dec. 31 | fill in the blank 44 | fill in the blank 45 | |
| fill in the blank 47 | fill in the blank 48 |
The cost of mineral rights was $546,000. Of the estimated deposit of 910,000 tons of ore, 50,000 tons were mined and sold during the year.
| Date | Description | Debit | Credit |
|---|---|---|---|
| Dec. 31 | fill in the blank 50 | fill in the blank 51 | |
| fill in the blank 53 | fill in the blank 54 |
Vacation pay expense for December, $10,500.
| Date | Description | Debit | Credit |
|---|---|---|---|
| Dec. 31 | fill in the blank 56 | fill in the blank 57 | |
| fill in the blank 59 | fill in the blank 60 |
A product warranty was granted beginning December 1 and covering a one-year period. The estimated cost is 4% of sales, which totaled $1,900,000 in December.
| Date | Description | Debit | Credit |
|---|---|---|---|
| Dec. 31 | fill in the blank 62 | fill in the blank 63 | |
| fill in the blank 65 | fill in the blank 66 |
Interest was accrued on the note receivable received on October 17 ($100,000, 90-day, 9% note). Assume 360 days per year.
| Date | Description | Debit | Credit |
|---|---|---|---|
| Dec. 31 | fill in the blank 68 | fill in the blank 69 | |
| fill in the blank 71 | fill in the blank 72 |
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