Prepare the necessary adjusting journal entries on June 30, 2022. [Narrations are not required] and Prepare the Adjusted Trial balance at June 30, 2022. Gregg's Shipping Supplies Ltd- Barbados BranchTrial Balance as at June 30, 2022Trial BalanceDR950,000700,000A/C NameCashAccounts receivableAllowance for bad debtMerchandise InventoryStore SuppliesPrepaid InsurancePrepaid rentFurniture and fixturesAccumulated depreciation-Furniture and FixturesMotor TruckAccumulated depreciation - Motor TruckAccounts payableSalary payableInterest payableUnearned Sales revenueLong-term loanGregg's, CapitalGregg's, WithdrawalsSales revenueSales discountSales returns and allowancesCost of goods soldSalaries expenseInsurance ExpenseUtilities ExpenseRent ExpenseDepreciation Expense - Furniture & FixturesDepreciation Expense - Motor TruckStore Supplies ExpenseGain on Disposal of Old Motor TruckBad-Debt ExpenseInterest Expense1,200,000180,000132,000248,500800,0001,200,000105,000150,000105,000988,000605,000148,500405,000284,000CR45,00079,00045,00033,000455,000900,0001,700,0004,902,50041,5008,201,000 8,201,000 The following additionalavailable at June 30, 2022:information is(i) Store Supplies on hand at June 30, 2022 amounted to$80,000.(ii) Insurance of $132,000 was paid on April 1, 2022, for 8-months to November 2022(iii) Rent was prepaid on March 1, 2022, for 7-months toSeptember 2022.(iv) The furniture and fixtures have an estimated useful life of10 years and is being depreciated on the straight-linemethod down to a residual value of $10,000.(v) The motor truck was acquired on May 1, 2022, and isbeing depreciatedover 5 years on the double-declining balance method ofdepreciation, down toa residue of $10,000(vi)Salaries earned by employees not yet paid amountedto $108,000 at June 30, 2022.(vii) Accrued interest expense as of June 30, 2022, $24,000.(viii) On June 30, 2022, $85,000 of the previously unearnedsales revenue had been earned.(ix)The aging of the Accounts Receivable schedule atJune 30, 2022 indicated that theAllowance for Bad Debts should be $70,000.After making all other adjustments, a physical count ofinventory was done, whichreveals that there was $1,100,000 worth of inventory onhand at June 30,2022Other data:(xi) The business is expected to make principal paymentstotalling $250,000 towards theloan during the fiscal year to June 30,2023Required:

Adjusting Entries - Adjusting Entries are adjustment made by the company to certain ledgers in case…

Gregg's Shipping Supplies Ltd- Barbados Branch Trial Balance as at June 30, 2022 Trial Balance A/C Name Cash Accounts receivable Allowance for bad debt Merchandise Inventory Store Supplies Prepaid Insurance Prepaid rent Furniture and fixtures Accumulated depreciation-Fumiture and Fixtures Motor Truck Accumulated depreciation - Motor Truck counts payable Salary payable Interest payable Uneamed Sales revenue Long-term loan Gregg's, Capital Gregg's, Withdrawals Sales revenue Sales discount Sales returns and allowances Cost of goods sold Salaries expense Insurance Expense Utilities Expense Rent Expense Depreciation Expense - Furniture & Fixtures Depreciation Expense - Motor Truck Store Supplies Expense Gain on Disposal of Old Motor Truck Bad-Debt Expense Interest Expense DR 950,000 700,000 1,200,000 180,000 132,000 248,500 800,000 1,200,000 105,000 150,000 105,000 988,000 605,000 148,500 405,000 284,000 CR 45,000 79,000 45,000 33,000 455,000 900,000 1,700,000 4,902,500 41,500 8,201,000 8,201,000

Gregg's Shipping Supplies Ltd- Barbados Branch Trial Balance as at June 30, 2022 Trial Balance A/C Name Cash Accounts receivable Allowance for bad debt Merchandise Inventory Store Supplies Prepaid Insurance Prepaid rent Furniture and fixtures Accumulated depreciation-Fumiture and Fixtures Motor Truck Accumulated depreciation - Motor Truck counts payable Salary payable Interest payable Uneamed Sales revenue Long-term loan Gregg's, Capital Gregg's, Withdrawals Sales revenue Sales discount Sales returns and allowances Cost of goods sold Salaries expense Insurance Expense Utilities Expense Rent Expense Depreciation Expense - Furniture & Fixtures Depreciation Expense - Motor Truck Store Supplies Expense Gain on Disposal of Old Motor Truck Bad-Debt Expense Interest Expense DR 950,000 700,000 1,200,000 180,000 132,000 248,500 800,000 1,200,000 105,000 150,000 105,000 988,000 605,000 148,500 405,000 284,000 CR 45,000 79,000 45,000 33,000 455,000 900,000 1,700,000 4,902,500 41,500 8,201,000 8,201,000

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

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 9P: During 2019, Ryel Companys controller asked you to prepare correcting journal entries for the...

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For each of the following situations write the principle, assumption, or concept that justifies or explains what occurred. A. A landscaper received a customers order and cash prepayment to install sod at a house that would not be ready for installation until March of next year. The owner should record the revenue from the customer order in March of next year, not in December of this year. B. A company divides its income statements into four quarters for the year. C. Land is purchased for $205,000 cash; the land is reported on the balance sheet of the purchaser at $205,000. D. Brandys Flower Shop is forecasting its balance sheet for the next five years. E. When preparing financials for a company, the owner makes sure that the expense transactions are kept separate from expenses of the other company that he owns. F. A company records the expenses incurred to generate the revenues reported.
Worksheet Victoria Company has the following account balances on December 31, 2019, prior to any adjustments: Additional adjustment information: (a) depreciation on buildings, 1,100; on equipment, 600; (b) bad debts expense, 240; (c) interest accumulated but not paid: on note payable, 50; on mortgage payable, 530 (this interest is due during the next accounting period); (d) insurance expired, 175; (e) salaries accrued but not paid 370; (f) rent was collected in advance and the performance obligation is now satisfied, 800; (g) office supplies cm hand at year-end, 230 (expensed when originally purchased earlier in the year); and (h) the income tax rate is 30% on current income and is payable in the first quarter of 2020. Required: 1. Transfer the account balances to a 10-column worksheet and prepare a trial balance. 2. Prepare the adjusting entries in the general journal and complete the worksheet. 3. Prepare the companys income statement, retained earnings statement, and balance sheet. 4. Prepare closing entries in the general journal.
Reece Financial Services Co., which specializes in appliance repair services, is owned and operated by Joni Reece. Reece Financial Services accounting clerk prepared the following unadjusted trial balance at July 31, 2019: The data needed to determine year-end adjustments are as follows: Depreciation of building for the year, 6,400. Depreciation of equipment for the year, 2,800. Accrued salaries and wages at July 31, 900. Unexpired insurance at July 31, 1,500. Fees earned but unbilled on July 31, 10,200. Supplies on hand at July 31, 615. Rent unearned at July 31, 300. Instructions 1. Journalize the adjusting entries using the following additional accounts: Salaries and Wages Payable, Rent Revenue, Insurance Expense, Depreciation ExpenseBuilding, Depreciation ExpenseEquipment, and Supplies Expense. 2. Determine the balances of the accounts affected by the adjusting entries and prepare an adjusted trial balance.
Worksheet for Service Company Whitaker Consulting Company has prepared a trial balance on the following partially completed worksheet for the year ended December 31, 2019: Additional information: (a) On January 1, 2019, the company had paid 2 years rent in advance at 100 a month for office space, (b) the office equipment is being depreciated on a straight-line basis over a 10-year life, and no residua! value is expected, (c) interest of 150 has accrued on the note payable but has not been paid, and (d) the income tax rate is 30% on current income and will be paid in the first quarter of 2020. Required: 1. Complete the worksheet. 2. Prepare financial statements for 2019.
The balance in Ashwood Companys accounts payable account at December 31, 2019, was 1,200,000 before any necessary year-end adjustment relating to the following: Goods were in transit from a vendor to Ashwood on December 31, 2019. The invoice cost was 85,000, and the goods were shipped FOB shipping point on December 29, 2019. The goods were received on January 2, 2020. Goods shipped FOB shipping point on December 20, 2019, from a vendor to Ashwood were lost in transit. The invoice cost was 40,000. On January 5, 2020, Ashwood filed a 40,000 claim against the common carrier. Goods shipped FOB destination on December 22, 2019, from a vendor to Ashwood were received on January 6, 2020. The invoice cost was 20,000, What amount should Ashwood report as accounts payable on its December 31,2019, balance sheet? a. 1,260,000 b. 1,285,000 c. 1,325,000 d. 1,345,000
The following additional information is available at June 30, 2022: Store Supplies on hand at June 30, 2022 amounted to $159,500. Insurance of $202,050 was paid on April 1, 2022, for 9-months to December 2022 Rent was prepaid on March 1, 2022, for 7-months to September 2022. The furniture and fixtures have an estimated useful life of 10 years and is being depreciated on the straight-line method down to a residual value of $10,000. The motor truck was acquired on November 1, 2021, and is being depreciated over 5 years on the double-declining balance method of depreciation, down to a residue of $15,000 Salaries earned by employees not yet paid amounted to $182,500 at June 30, 2022. Accrued interest expense as of June 30, 2022, $65,000. On June 30, 2022, $145,000 of the previously unearned sales revenue had been earned. The aging of the Accounts Receivable schedule at June 30, 2022 indicated that the Allowance for…
The following additional information is available at June 30, 2022: Store Supplies on hand at June 30, 2022 amounted to $95,400. Insurance of $184,950 was paid on April 1, 2022, for 9-months to December 2022 Rent was prepaid on March 1, 2022, for 7-months to September 2022. The furniture and fixtures have an estimated useful life of 10 years and is being depreciated on the straight-line method down to a residual value of $10,000. The motor truck was acquired on February 1, 2022, and is being depreciated over 5 years on the double-declining balance method of depreciation, down to a residue of $15,000 Salaries earned by employees not yet paid amounted to $195,000 at June 30, 2022. Accrued interest expense as of June 30, 2022, $50,550. On June 30, 2022, $66,000 of the previously unearned sales revenue had been earned. The aging of the Accounts Receivable schedule at June 30, 2022 indicated that the Allowance for Bad Debts…
The following additional information is available December 31, 2021: Store Supplies on hand on December 31, 2021, amounted to $800,000. Insurance of $2,660,000 was paid on January 1, 2021, for the 14-months to February 28, 2022 Prepaid rent expired December 31, 2021, amounted to $2,100,000 The furniture and equipment have an estimated useful life of 10 years and is being depreciated on the straight-line method down to a residual value of $200,000. The delivery van cost relates to two Toyoda Vans purchased for $2,000,000 each by the company on January 1, 2015. The double-declining balance method of depreciation is used to compute the van’s depreciation charges and their expected useful life is 10 years or 100,000 miles. In 2015, 10,000 miles were driven, 16,500 in 2016, 12,600 in 2017, 16,000 in 2018, 16,500 in 2019, 14,800 in 2020 and 16,800 in 2021. The residual value on both van is $241,592 each. On September 1, 2021, the company sold one of the vans to ZM Company for $680,000 on…
The following additional information is available December 31, 2022: Store Supplies on hand on December 31, 2022, amounted to $350,000. Insurance of $5,850,000 was paid on January 1, 2022, for the 18-months to June 30, 2023 Prepaid rent expired December 31, 2022, amounted to $1,110,000. The furniture and equipment have an estimated useful life of 10 years and is being depreciated on the straight-line method down to a residual value of $100,000. The motor truck cost relates to two Livi Trucks purchased for $1,300,000 each by the company on January 1, 2016. The double-declining balance method of depreciation is used to compute the truck’s depreciation charges and their expected useful life is 10 years or 100,000 miles. In 2016, 15,000 miles were driven, 18,500 in 2017, 15,600 in 2018, 17,000 in 2019, 14,500 in 2020, 10,800 in 2021 and 12,800 in 2022. The residual value on both truck is $272,630 each. On July 1, 2022, the company sold one of the trucks to Daley Company for $480,000…
The following additional information is available at June 30, 2022: (i) Store Supplies on hand at June 30, 2022 amounted to $159,500. (ii) Insurance of $202,050 was paid on April 1, 2022, for 9-months to December 2022 (iii) Rent was prepaid on March 1, 2022, for 7-months to September 2022. (iv) The furniture and fixtures have an estimated useful life of 10 years and is being depreciated on the straight-line method down to a residual value of $10,000. (v) The motor truck was acquired on November 1, 2021, and is being depreciated over 5 years on the double-declining balance method of depreciation, down to a residue of $15,000 (vi) Salaries earned by employees not yet paid amounted to $182,500 at June 30, 2022. (vii) Accrued interest expense as of June 30, 2022, $65,000. (viii) On June 30, 2022, $145,000 of the previously unearned sales revenue had been earned. (ix) The aging of the…
The following additional information is available at June 30, 2022: (i) Store Supplies on hand at June 30, 2022 amounted to $62,000. (ii) Insurance of $157,500 was paid on April 1, 2022, for 9-months to December 2022 (iii) Rent was prepaid on March 1, 2022, for 7-months to September 2022. (iv) The furniture and fixtures have an estimated useful life of 10 years and is being depreciated on the straight-line method down to a residual value of $10,000. (v) The motor truck was acquired on February 1, 2022, and is being depreciated over 5 years on the double-declining balance method of depreciation, down to a residue of $15,000 (vi) Salaries earned by employees not yet paid amounted to $73,800 at June 30, 2022. (vii) Accrued interest expense as of June 30, 2022, $48,300. (viii) On June 30, 2022, $106,000 of the previously unearned sales revenue had been earned. (ix) The aging of the Accounts…
The following additional information is available at June 30, 2022:(i) Store Supplies on hand at June 30, 2022 amounted to $95,400.(ii) Insurance of $184,950 was paid on April 1, 2022, for 9-months to December 2022 (iii) Rent was prepaid on March 1, 2022, for 7-months to September 2022.(iv) The furniture and fixtures have an estimated useful life of 10 years and is being depreciated on the straight-line method down to a residual value of $10,000.(v) The motor truck was acquired on February 1, 2022, and is being depreciated over 5 years on the double-declining balance method of depreciation, down toa residue of $15,000(vi) Salaries earned by employees not yet paid amounted to $195,000 at June 30, 2022.(vii) Accrued interest expense as of June 30, 2022, $50,550.(viii) On June 30, 2022, $66,000 of the previously unearned sales revenue had been earned.(ix) The aging of the Accounts Receivable schedule at June 30, 2022 indicated that the Allowance for Bad Debts should be $100,000.(x) After…