Hardform Mold Shop Inc. is a company specialized in designing and building molds for the automotive and aircraft industries. The account balances in the company’s general ledger on January 1, 2020 (first day of the annual fiscal year) were as follows (all account balances are in their normal position): Cash $ 3,700 Accounts receivable 5,900 Supplies inventory 29,300 Land 168,500 Buildings 116,500 Accumulated depreciation, buildings 37,500 Equipment 58,500 Accumulated depreciation, equipment 18,000 Accounts payable 25,200 Income tax payable 16,600 Interest payable 4,200 Wages payable (due in 2020) 15,700 Notes payable ($10,000 due June 30, 2021, balance due June 30, 2022) 61,500 Common shares 151,500 Retained earnings, Dec. 31, 2019 52,200 Transactions during 2020: The company provided mold design services, all on credit, for $210,300. In addition, the company manufactured molds for customers for $62,300 cash. Accounts receivable of $15,600 remain to be collected at December 31, 2020. Inventory of $62,900 was purchased on credit and debited to the supplies inventory account. Minor parts were purchased for $7,400 cash and debited to the supplies inventory account. Wages payable at the beginning of 2020 were paid early in 2020. Wages were earned by employees and paid during 2020 in the amount of $112,000. Income tax payable at the beginning of 2020 were paid early in 2020. Payments of $73,000 were made to creditors for supplies previously purchased on credit. One year’s interest at 9% was paid on the notes payable at July 1, 2020. During 2020, James Wilkinson, the principal shareholder, purchased a new care for his wife Sylvia. The new car cost $45,000 and was paid for with personal funds in cash. Property taxes were paid on the land and buildings in the amount of $17,000 cash. Dividends were declared and paid in the amount of $7,200. Information available for year and adjusting entries: Supplies inventory was counted and it was determined the supplies inventory was still on hand at yearend of $31,900. Annual depreciation on the buildings is $6,000. Annual depreciation on the equipment is $5,500. Wages of $4,000 had been earned but were unpaid and unrecorded at yearend. Interest for six months at 9% per year on the notes payable is unpaid and unrecorded at yearend. Income taxes of $16,500 were unpaid and unrecorded at year end. Required: Post 2020 beginning balances to T-accounts. Prepare journal entries for transactions 1 to 11 above as required and post the journal entries to T-accounts adding any new accounts that you need.

Hardform Mold Shop Inc. is a company specialized in designing and building molds for the automotive and aircraft industries. The account balances in the company’s general ledger on January 1, 2020 (first day of the annual fiscal year) were as follows (all account balances are in their normal position): Cash $ 3,700 Accounts receivable 5,900 Supplies inventory 29,300 Land 168,500 Buildings 116,500 Accumulated depreciation, buildings 37,500 Equipment 58,500 Accumulated depreciation, equipment 18,000 Accounts payable 25,200 Income tax payable 16,600 Interest payable 4,200 Wages payable (due in 2020) 15,700 Notes payable ($10,000 due June 30, 2021, balance due June 30, 2022) 61,500 Common shares 151,500 Retained earnings, Dec. 31, 2019 52,200 Transactions during 2020: The company provided mold design services, all on credit, for $210,300. In addition, the company manufactured molds for customers for $62,300 cash. Accounts receivable of $15,600 remain to be collected at December 31, 2020. Inventory of $62,900 was purchased on credit and debited to the supplies inventory account. Minor parts were purchased for $7,400 cash and debited to the supplies inventory account. Wages payable at the beginning of 2020 were paid early in 2020. Wages were earned by employees and paid during 2020 in the amount of $112,000. Income tax payable at the beginning of 2020 were paid early in 2020. Payments of $73,000 were made to creditors for supplies previously purchased on credit. One year’s interest at 9% was paid on the notes payable at July 1, 2020. During 2020, James Wilkinson, the principal shareholder, purchased a new care for his wife Sylvia. The new car cost $45,000 and was paid for with personal funds in cash. Property taxes were paid on the land and buildings in the amount of $17,000 cash. Dividends were declared and paid in the amount of $7,200. Information available for year and adjusting entries: Supplies inventory was counted and it was determined the supplies inventory was still on hand at yearend of $31,900. Annual depreciation on the buildings is $6,000. Annual depreciation on the equipment is $5,500. Wages of $4,000 had been earned but were unpaid and unrecorded at yearend. Interest for six months at 9% per year on the notes payable is unpaid and unrecorded at yearend. Income taxes of $16,500 were unpaid and unrecorded at year end. Required: Post 2020 beginning balances to T-accounts. Prepare journal entries for transactions 1 to 11 above as required and post the journal entries to T-accounts adding any new accounts that you need.

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter6: Work Sheet And Adjusting Entries For A Service Business

Section: Chapter Questions

Problem 1MP

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Cash	$ 3,700
Accounts receivable	5,900
Supplies inventory	29,300
Land	168,500
Buildings	116,500
Accumulated depreciation, buildings	37,500
Equipment	58,500
Accumulated depreciation, equipment	18,000
Accounts payable	25,200
Income tax payable	16,600
Interest payable	4,200
Wages payable (due in 2020)	15,700
Notes payable ($10,000 due June 30, 2021, balance due June 30, 2022)	61,500
Common shares	151,500
Retained earnings, Dec. 31, 2019	52,200

Transactions during 2020:

The company provided mold design services, all on credit, for $210,300. In addition, the company manufactured molds for customers for $62,300 cash.

Accounts receivable of $15,600 remain to be collected at December 31, 2020.

Inventory of $62,900 was purchased on credit and debited to the supplies inventory account.

Minor parts were purchased for $7,400 cash and debited to the supplies inventory account.

Wages payable at the beginning of 2020 were paid early in 2020. Wages were earned by employees and paid during 2020 in the amount of $112,000.

Income tax payable at the beginning of 2020 were paid early in 2020.

Payments of $73,000 were made to creditors for supplies previously purchased on credit.

One year’s interest at 9% was paid on the notes payable at July 1, 2020.

During 2020, James Wilkinson, the principal shareholder, purchased a new care for his wife Sylvia. The new car cost $45,000 and was paid for with personal funds in cash.

Property taxes were paid on the land and buildings in the amount of $17,000 cash.

Dividends were declared and paid in the amount of $7,200.

Information available for year and adjusting entries:

Supplies inventory was counted and it was determined the supplies inventory was still on hand at yearend of $31,900.

Annual depreciation on the buildings is $6,000.

Annual depreciation on the equipment is $5,500.

Wages of $4,000 had been earned but were unpaid and unrecorded at yearend.

Interest for six months at 9% per year on the notes payable is unpaid and unrecorded at yearend.

Income taxes of $16,500 were unpaid and unrecorded at year end.

Required:

Post 2020 beginning balances to T-accounts. Prepare journal entries for transactions 1 to 11 above as required and post the journal entries to T-accounts adding any new accounts that you need.

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