Comprehensive Accounting Cycle Review 9-1 (Part Level Submission) Pina Colada Corp.’s unadjusted trial balance at December 1, 2017, is presented below.   Debit   Credit Cash $25,900     Accounts Receivable 35,100     Notes Receivable 8,400     Interest Receivable 0     Inventory 36,280     Prepaid Insurance 3,600     Land 21,800     Buildings 140,100     Equipment 60,500     Patent 9,630     Allowance for Doubtful Accounts     $600 Accumulated Depreciation—Buildings     46,700 Accumulated Depreciation—Equipment     24,200 Accounts Payable     28,100 Salaries and Wages Payable     0 Notes Payable (due April 30, 2018)     12,900 Income Taxes Payable     0 Interest Payable     0 Notes Payable (due in 2023)     36,000 Common Stock     56,400 Retained Earnings     24,410 Dividends 13,500     Sales Revenue     923,500 Interest Revenue     0 Gain on Disposal of Plant Assets     0 Bad Debt Expense 0     Cost of Goods Sold 631,500     Depreciation Expense 0     Income Tax Expense 0     Insurance Expense 0     Interest Expense 0     Other Operating Expenses 61,000     Amortization Expense 0     Salaries and Wages Expense 105,500     Total $1,152,810   $1,152,810 The following transactions occurred during December. Dec. 2   Purchased equipment for $16,200, plus sales taxes of $1,800 (paid in cash). 2   Pina 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   Pina sold for $5,450 on account inventory that cost $3,280. 23   Salaries and wages of $6,370 were paid. Adjustment data: 1.   Pina estimates that uncollectible accounts receivable at year-end are $4,190. 2.   The note receivable is a one-year, 8% note dated April 1, 2017. No interest has been recorded. 3.   The balance in prepaid insurance represents payment of a $3,600, 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 $2,340. 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 $2,070. 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 $12,000. It was unpaid at December 31.             (a) 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 0 for the amounts. Record journal entries in the order presented in the problem.)

Question

Comprehensive Accounting Cycle Review 9-1 (Part Level Submission)

Pina Colada Corp.’s unadjusted trial balance at December 1, 2017, is presented below.

 
Debit
 
Credit
Cash $25,900    
Accounts Receivable 35,100    
Notes Receivable 8,400    
Interest Receivable 0    
Inventory 36,280    
Prepaid Insurance 3,600    
Land 21,800    
Buildings 140,100    
Equipment 60,500    
Patent 9,630    
Allowance for Doubtful Accounts     $600
Accumulated Depreciation—Buildings     46,700
Accumulated Depreciation—Equipment     24,200
Accounts Payable     28,100
Salaries and Wages Payable     0
Notes Payable (due April 30, 2018)     12,900
Income Taxes Payable     0
Interest Payable     0
Notes Payable (due in 2023)     36,000
Common Stock     56,400
Retained Earnings     24,410
Dividends 13,500    
Sales Revenue     923,500
Interest Revenue     0
Gain on Disposal of Plant Assets     0
Bad Debt Expense 0    
Cost of Goods Sold 631,500    
Depreciation Expense 0    
Income Tax Expense 0    
Insurance Expense 0    
Interest Expense 0    
Other Operating Expenses 61,000    
Amortization Expense 0    
Salaries and Wages Expense 105,500    
Total $1,152,810   $1,152,810

The following transactions occurred during December.

Dec. 2   Purchased equipment for $16,200, plus sales taxes of $1,800 (paid in cash).
2   Pina 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   Pina sold for $5,450 on account inventory that cost $3,280.
23   Salaries and wages of $6,370 were paid.

Adjustment data:

1.   Pina estimates that uncollectible accounts receivable at year-end are $4,190.
2.   The note receivable is a one-year, 8% note dated April 1, 2017. No interest has been recorded.
3.   The balance in prepaid insurance represents payment of a $3,600, 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 $2,340.
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 $2,070.
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 $12,000. It was unpaid at December 31.
 
 
 
 
 
 

(a)

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 0 for the amounts. Record journal entries in the order presented in the problem.)

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