Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] a. Wages of $8,000 are earned by workers but not paid as of December 31. b. Depreciation on the company's equipment for the year is $11,320. c. The Supplies account had a $470 debit balance at the beginning of the year. During the year, $5,582 of supplies are purchased. A physical count of supplies at December 31 shows $608 of supplies available. d. The Prepaid Insurance account had a $5,000 balance at the beginning of the year. An analysis of insurance policies shows that $3,300 of unexpired insurance benefits remain at December 31. e. The company has earned (but not recorded) $500 of interest revenue for the year ended December 31. The interest payment will be received 10 days after the year-end on January 10. f. The company has a bank loan and has incurred (but not recorded) interest expense of $4,000 for the year ended December 31. The company will pay the interest five days after the year-end on January 5.

Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] a. Wages of $8,000 are earned by workers but not paid as of December 31. b. Depreciation on the company's equipment for the year is $11,320. c. The Supplies account had a $470 debit balance at the beginning of the year. During the year, $5,582 of supplies are purchased. A physical count of supplies at December 31 shows $608 of supplies available. d. The Prepaid Insurance account had a $5,000 balance at the beginning of the year. An analysis of insurance policies shows that $3,300 of unexpired insurance benefits remain at December 31. e. The company has earned (but not recorded) $500 of interest revenue for the year ended December 31. The interest payment will be received 10 days after the year-end on January 10. f. The company has a bank loan and has incurred (but not recorded) interest expense of $4,000 for the year ended December 31. The company will pay the interest five days after the year-end on January 5.

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

Chapter3: Review Of A Company's Accounting System

Section: Chapter Questions

Problem 1P: Adjusting Entries The following information is available for Drake Company, which adjusts and closes...

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Adjusting Entries The following information is available for Drake Company, which adjusts and closes its accounts every December 31: 1. Salaries accrued but unpaid total 2,840 on December 31. 2. The 247 December utility bill arrived on December 31 and has not been paid or recorded. 3. Buildings with a cost of 78,000, 25-year life, and 9,000 residual value are to be depreciated; equipment with a cost of 44,000, 8-year life, and 2,000 residual value is also to be depreciated. The straight linemethod is to be used. 4. A count of supplies indicates that the Store Supplies account should be reduced by 128 and the Office Supplies account reduced by 397 for supplies used during the year. 5. The company holds a 6,000, 12% (annual rate), 6 month note receivable dated September 30, from a customer. The interest is to be collected on the maturity date. 6. Bad debts expense is estimated to be 1% of annual sales. Sales total 65,000. 7. An analysis of the company insurance policies indicates that the Prepaid Insurance account is to be reduced for 528 of expired insurance. 8. A review of travel expense reports indicates that 310 has been paid for airfare for a salesperson (and recorded as Travel Expenses), but has not yet been used. 9. The income tax rate is 30% on current income and will be paid in the first quarter of next year. The pretax income of the company before adjustments is 18,270. Required: Journalize the necessary year-end adjusting entries for Drake. Show supporting calculations in your journal entry explanations.
LO2 Prepare adjusting entries at December 31 for J P Company based on the following data. (a) Factory overhead is applied at a rate of 75% of direct labor costs. At the end of the year, the direct labor costs associated with the jobs in process totaled 8,000. (b) A physical count of factory supplies at the end of the year shows that 4,920 of factory supplies were used during the year. (c) Depreciation expense for the year on the factory building was 8,700 and on factory equipment was 11,600, a total of 20,300. (d) The factory overhead account has a debit balance of 186,500 and a credit balance of 183,900 [after recording adjustments (a) through (c)].
Use the following information for the Exercises below. (Algo) Skip to question [The following information applies to the questions displayed below.] Wages of $13,000 are earned by workers but not paid as of December 31. Depreciation on the company’s equipment for the year is $10,600. The Supplies account had a $490 debit balance at the beginning of the year. During the year, $4,870 of supplies are purchased. A physical count of supplies at December 31 shows $537 of supplies available. The Prepaid Insurance account had a $5,000 balance at the beginning of the year. An analysis of insurance policies shows that $3,500 of unexpired insurance benefits remain at December 31. The company has earned (but not recorded) $600 of interest revenue for the year ended December 31. The interest payment will be received 10 days after the year-end on January 10. The company has a bank loan and has incurred (but not recorded) interest expense of $4,500 for the year ended December 31. The company will…
[The following information applies to the questions displayed below.] a. Wages of $13,000 are earned by workers but not paid as of December 31. b. Depreciation on the company's equipment for the year is $11,560. c. The Supplies account had a $430 debit balance at the beginning of the year. During the year, $4,599 of supplies are purchased. A physical count of supplies at December 31 shows $510 of supplies available. Saved d. The Prepaid Insurance account had a $5,000 balance at the beginning of the year. An analysis of insurance policies shows that $2,800 of unexpired insurance benefits remain at December 31. e. The company has earned (but not recorded) $900 of interest revenue for the year ended December 31. The interest payment will be received 10 days after the year-end on January 10. f. The company has a bank loan and has incurred (but not recorded) interest expense of $4,000 for the year ended December 31. The company will pay the interest five days after the year-end on January…
he following information applies to the questions displayed below.] Wages of $8,000 are earned by workers but not paid as of December 31.Depreciation on the company’s equipment for the year is $18,000.The Supplies account had a $240 debit balance at the beginning of the year. During the year, $5,200 of supplies are purchased. A physical count of supplies at December 31 shows $440 of supplies available.The Prepaid Insurance account had a $4,000 balance at the beginning of the year. An analysis of insurance policies shows that $1,200 of unexpired insurance benefits remain at December 31.The company has earned (but not recorded) $1,050 of interest revenue for the year ended December 31. The interest payment will be received 10 days after the year-end on January 10.The company has a bank loan and has incurred (but not recorded) interest expense of $2,500 for the year ended December 31. The company will pay the interest five days after the year-end on January 5.For each of the above…
The following information is available for Drake Company, which adjusts and closes its accounts every December 31: 1. Salaries accrued but unpaid total $2,840 on December 31. 2. The $247 December utility bill arrived on December 31 and has not been paid or recorded. 3. Buildings with a cost of $78,000, 25-year life, and $9,000 residual value are to be depreciated; equipment with a cost of $44,000, 8-year life, and $2,000 residual value is also to be depreciated. The straight-line method is to be used. 4. A count of supplies indicates that the Store Supplies account should be reduced by $128 and the Office Supplies account reduced by $397 for supplies used during the year. 5. The company holds a $6,000, 12% (annual rate), 6-month note receivable dated September 30, from a customer. The interest is to be collected on the maturity date. 6. Bad debts expense is estimated to be 1% of annual sales. Sales total $65,000. 7. An analysis of the company insurance policies…
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image) Required information Use the following information for the Exercises below. (Static) Skip to question [The following information applies to the questions displayed below.] Wages of $8,000 are earned by workers but not paid as of December 31. Depreciation on the company’s equipment for the year is $18,000. The Supplies account had a $240 debit balance at the beginning of the year. During the year, $5,200 of supplies are purchased. A physical count of supplies at December 31 shows $440 of supplies available. The Prepaid Insurance account had a $4,000 balance at the beginning of the year. An analysis of insurance policies shows that $1,200 of unexpired insurance benefits remain at December 31. The company has earned (but not recorded) $1,050 of interest revenue for the year…
The following information is available for Drake Company, which adjusts and closes its accounts every December 31: 1. Salaries accured but Unpaid total $2,840 on December 31. 2. The $247 December Utility arrived on December 31 and has not been paid or recorded. 3. Buildings with a cost of $78,000, 25-year life, and $9,000 residual value are to be depreciated; equipment with a cost of $44,000, 8-year life, and $2,000 residual value is also to be depreciated. The straight-line method is to be used. 4. A count of supplies indicates that the Store Supp es account should be reduced by $128 and the Office Supplies account reduced by $397 for supplies used during the year. 5. The company holds a $6,000, 12% (annual rate), 6-month note receivable dated September 30 from a customer. The interest is to be collected on maturity date. 6. Bad debts expense is estimated to be 1% of annual sales.…
The following year-end information is taken from the December 31 adjusted trial balance and other records of Leone Company. Advertising expense $ 49,000 Depreciation expense—Office equipment 28,000 Depreciation expense—Selling equipment 29,000 Depreciation expense—Factory equipment 71,000 Raw materials purchases (all direct materials) 810,000 Maintenance expense—Factory equipment 42,300 Factory utilities 37,200 Direct labor 484,000 Indirect labor 73,000 Office salaries expense 44,000 Rent expense—Office space 26,000 Rent expense—Selling space 62,000 Rent expense—Factory building 149,000 Sales salaries expense 358,000 Use the following additional information for Leone Company Raw materials inventory, beginning $ 162,000 Raw materials inventory, ending 167,000 Work in process inventory, beginning 49,000 Sales 2,695,000 Work in process inventory, ending 53,000 Finished goods inventory, beginning 69,000 Finished goods inventory, ending…
The following year-end information is taken from the December 31 adjusted trial balance and other records of Leone Company. Advertising expense $ 49,000 Depreciation expense—Office equipment 28,000 Depreciation expense—Selling equipment 29,000 Depreciation expense—Factory equipment 71,000 Raw materials purchases (all direct materials) 810,000 Maintenance expense—Factory equipment 42,300 Factory utilities 37,200 Direct labor 484,000 Indirect labor 73,000 Office salaries expense 44,000 Rent expense—Office space 26,000 Rent expense—Selling space 62,000 Rent expense—Factory building 149,000 Sales salaries expense 358,000 Identify each cost as either a product cost or a period cost. If a product cost, classify it as direct materials, direct labor, or factory overhead. If a period cost, classify it as a selling expense or a general and administrative expense.
The following year-end information is taken from the December 31 adjusted trial balance and other records of Leone Company. Advertising expense $ 49,000 Depreciation expense—Office equipment 28,000 Depreciation expense—Selling equipment 29,000 Depreciation expense—Factory equipment 71,000 Raw materials purchases (all direct materials) 810,000 Maintenance expense—Factory equipment 42,300 Factory utilities 37,200 Direct labor 484,000 Indirect labor 73,000 Office salaries expense 44,000 Rent expense—Office space 26,000 Rent expense—Selling space 62,000 Rent expense—Factory building 149,000 Sales salaries expense 358,000 Use the following additional information for Leone Company Raw materials inventory, beginning $ 162,000 Raw materials inventory, ending 167,000 Work in process inventory, beginning 49,000 Sales 2,695,000 Work in process inventory, ending 53,000 Finished goods inventory, beginning 69,000 Finished goods inventory, ending…
Prepare the double entries for the following. The following additional information is available on 31 March 2021:(a) Electricity incurred for the month amounted to $7,000.(b) The employees receive a total salary of $40,500 for a five-day work week.All employees worked for the whole month of March.(c) (i)Building, (ii) equipment and (iii) motor vehicles are recorded at historicalcost and their estimated useful lives are 50 years, 5 years and 5 yearsrespectively. No residual value is expected for the building. The buildingwas acquired on 1 May 2017. The company uses straight-line method for allbuildings. All the equipment and motor vehicles are acquired on 1 January2018. The company uses unit of activity method to depreciate equipmentand the double-declining balance method to depreciate all motor vehicles.The company expects that the salvage value of the equipment and motorvehicles is 10 % of the purchase cost. The equipment is for packing and thetotal amount of packing for 5 years are…