How do I answer question 10? count on December 31, 2020 before closing for New Year's Eve. Estelle recordsinventory at net realizable value on an item-by-item basis for financial reporting.Food inventoryCostNet realizable valueRaw ingredients – wetRaw ingredients – dryFinished goods - refrigeratedand non-refrigerated dessertsready for saleTotal$45,000$72,000$3,200$43,000$68,000$3,200120,200114,2006. The following information regarding payroll needs to be considered in preparing year-endfinancial statements (ignore payroll taxes):EmployeeEstelle BissetPay rateAnnual 108,000Pay frequency15th of the month (for prior month)7. In November 2020 TBTI was approached about catering a 35th birthday. TBTI would prepareindividual boxes of French desserts for the host to pick up and deliver to attendees' homesin advance of the Zoom 35th birthday party on May 5, 2021.A formal agreement was signed on November 31, 2020 with a $1,000 deposit paid. The fullamount paid was credited to Revenue on November 31, 2020.8. Estelle has reviewed the Accounts Receivable balance and notes that about 70% relates tocorporate receivables from catering events. Normally TBTI collects virtually all of itsoutstanding receivables. Due to the unusual economic conditions in 2020, Estelle fears thisyear might be different. Estelle estimates fifteen percent of the non-corporate receivablesmight not be collectible. Forty percent of the corporate receivables have been outstanding90 days and ten percent of the corporate receivables have been outstanding for over 120days. Estelle believes fifteen percent of the over 120 day corporate receivables might not becollectible and ten percent of over 90 day corporate receivables might not be collectible.9. TBTI's payroll clerk is a very hard worker who has not taken vacation in 2019 or 2020. In2020 the payroll clerk worked from home. Employees do not typically report payroll errors,so Estelle does not need to monitor the payroll clerk closely.10. TBTI pays corporate taxes at 15%. Exhibit 1The Baker's Talent Inc.Unadjusted Trial Balance, December 31, 2020Account nameDebit CADSCredit CADSCash423,177137,0005,400149,000Accounts receivablePrepaid insuranceInventoryMachineryAccumulated depreciation - Machinery53,00025,864Furniture and Fixtures123,000Accumulated depreciation – Furniture and Fixtures30,750Computer equipmentAccounts payableDividends payableContributed capitalRetained earnings4,65045,00010,00075,000140,386Revenue2,630,000PurchasesSalaries and wages expenseAdvertising expenseRepairs and maintenanceRent expenseLaundry expenseUtilities expenseAdministrative expense606,8001,281,91316,00018,37096,00018,25014,44010,000$2,957,000$2,957,000

Income tax: It is the amount a person is liable to pay on the earned amount in an accounting year.…

The Baker's Talent Inc. Unadjusted Trial Balance, December 31, 2020 Account name Debit CADS Credit CADS 423,177 137,000 5,400 149,000 Cash Accounts receivable Prepaid insurance Inventory Machinery Accumulated depreciation – Machinery 53,000 25,864 Furniture and Fixtures 123,000 Accumulated depreciation – Furniture and Fixtures Computer equipment Accounts payable Dividends payable Contributed capital Retained earnings 30,750 4,650 45,000 10,000 75,000 140,386 Revenue 2,630,000 606,800 1,281,913 16,000 18,370 96,000 18,250 14,440 Purchases Salaries and wages expense Advertising expense Repairs and maintenance Rent expense Laundry expense Utilities expense Administrative expense 10,000 $2,957,000 $2,957,000

The Baker's Talent Inc. Unadjusted Trial Balance, December 31, 2020 Account name Debit CADS Credit CADS 423,177 137,000 5,400 149,000 Cash Accounts receivable Prepaid insurance Inventory Machinery Accumulated depreciation – Machinery 53,000 25,864 Furniture and Fixtures 123,000 Accumulated depreciation – Furniture and Fixtures Computer equipment Accounts payable Dividends payable Contributed capital Retained earnings 30,750 4,650 45,000 10,000 75,000 140,386 Revenue 2,630,000 606,800 1,281,913 16,000 18,370 96,000 18,250 14,440 Purchases Salaries and wages expense Advertising expense Repairs and maintenance Rent expense Laundry expense Utilities expense Administrative expense 10,000 $2,957,000 $2,957,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter1: Accounting And The Financial Statements

Section: Chapter Questions

Problem 58APSA

See similar textbooks

Similar questions

Balance Sheet and Notes Listed here in random order are Wicks Construction Limiteds balance sheet accounts and related ending balances as of December 31, 2019: Additional information: 1. The company reports on the balance sheet the total amount for inventories and the net book value of property, plant, and equipment, with the related details for each account disclosed in notes. 2. The straight line method is used to depreciate buildings, machinery, and equipment, based upon their cost and estimated residual values and lives. A breakdown of property, plant, and equipment shows the following: land at a cost of 32,000, buildings at a cost of 182,400 and a net book value of 120,200, machinery at a cost of 63,900, and related accumulated depreciation of 18,600, and equipment (40% depreciated) at a cost of 53,000. 3. Patents are amortized on a straight line basis directly to the Patent account. 4. Inventories are listed at the lower of cost or market value using an average cost. The inventories include raw-materials, 22,200; work in process, 34,700; and finished goods, 41,600. 5. Common stock has a 10 par value per share, 12,000 shares are authorized, and 6,280 shares have been issued. 6. Preferred stock has a 100 par value per share, 1,000 shares are authorized, and 400 shares have been issued. 7. The investment in bonds is carried at the original cost, which is the face value, and is being held to maturity. 8. Short-term investments in marketable securities were purchased at year-end. 9. The bonds payable mature on December 31, 2024. 10. The company attaches a 1-year warranty on all the products it sells. Required: 1. Prepare Wicks Constructions December 31, 2019, balance sheet (including appropriate parenthetical notations). 2. Prepare notes to accompany the balance sheet that itemize company accounting policies; inventories; and property, plant, and equipment. 3. Next Level Compute the current ratio and the quick ratio. How do these two ratios provide different information about the companys liquidity? Why are these ratios useful?
Exercise 1-40 Depreciation OBJECTIVE 0Â° Swanson Products was organized as a new business on January 1, 2019. On that date. Swanson acquired equipment at a cost of $425,000. which is depreciated at a rate of $40,000 per year. Required: Describe how the equipment and its related depreciation will be reported on the balance sheet at December 31, 2019, and on the 2019 income statement.
help me Question 6The following trial balance was extracted from the ledger of Juliana at 31 December2020.JulianaTrial Balance as at 31 December 2020RM RMLand at cost 26,000Plant at cost 83,000Accumulated Depreciation at 1 January 2020- Plant 13,000Office Equipment 33,000Accumulated Depreciation at 1 January 2020Office Equipment 8,000Receivables 198,000Payables 52,000Sales 763,000Purchases 516,000Returns inwards 47,000Discount allowed 4,000Capital at 1st January 2020 230,000Drawings 14,000Provision for doubtful debts at 1 January 2020 23,000Salaries Expense 44,000Administration costs 38,000Bank 75,000Bad debts written off 77,000Inventory at 1 January 2020 84,0001,164,000 1,164,000Additional information: Closing inventory is RM74,000. Depreciation on plant is charged at 10% per annum on cost. Depreciationon office equipment is charged at 20% per annum using the reducingbalance method. Administration costs include insurance prepaid of RM3,000. Salary accrued amount to RM2,000. The…
How to do the post-adjustment trial balance of Fling Incorporated for the financial year ended 31 December 2021. Motor vehicles50 000 DtAccumulated depreciation on motor vehicles5 000 CrDebtors control45 000 DtBank: one 7 550 DtBank two:650 CrEquipment25 000 DtAccumulated depreciation on equipment2 100 CrCreditors control15 600 CrShare capital3 000 CrRetained earnings31 800 CrRental income13 000 CrInventory: Finished products8 500 DtSale of goods135 000 CrWater and electricity8 800 DtSalaries and wages55 000 CrPrinting and stationery6 300 Cr206 150(206 150) Adjustments:1. Rental income earned monthly amounts to R1 000.2. Printing and stationery on hand as at 31 December 2021 amounted to R800.3. Cleaning expenses of R250 was incorrectly posted to the salaries and wages account.4. Discount of R150 was given to a debtor who…
Question 6The following trial balance was extracted from the ledger of Juliana at 31 December2020. JulianaTrial Balance as at 31 December 2020 RM RMLand at cost 26,000Plant at cost 83,000Accumulated Depreciation at 1 January 2020- Plant 13,000Office Equipment 33,000Accumulated Depreciation at 1 January 2020 Office Equipment 8,000Receivables 198,000Payables 52,000Sales…
1. The adjusting entry to correct the entry made on trade-in of Machine 3 will include aa. Debit to Accumulated Depreciation P67,500b. Debit to Loss on Exchange P58,500c. Credit to Production Machine P67,500d. Credit to Cash P192,000 2. The total depreciation for the year ended December 31, 2020 isa. P237,000 c. P233,250b. P232,500 d. P236,250 3. The carrying amount of production machine as of December 31, 2020 isa. P1,024,500 c. P1,069,500b. P1,029,000 d. P 990,750
1. The company purchased equipment on account for P190,000 on September 01, 2016. The equipment has an estimated useful life of 8 years and salvage value of P10,000. Required: a. Record the adjusting entry to take up the depreciation for the year December 31, 2019. b. Provide the computation of depreciation expense for December 31, 2019. 2. The company has the following balances on the Unadjusted Trial Balance for the year Dec. 31, 2019: Computer - P240,000 Accumulated Depreciation – Computer - P 40,000 Depreciation Policy: Straight line method with useful life of 5 years, and zero scrap value. Required: a. Prepare adjusting entries for the depreciation expense for 2019. b. Present the net book value of the computer for December 31, 2019.
1. Case: The accounts and balances shown below were gathered from Clown Company's trial balance on December 31, 2017. All adjusting entries have been made. Property, plant and equipment, P500,000; biological assets, P200,000; Goodwill on combination, P300,000; Identifiable intangible assets, P150,000; Investment property, P200,000; Investment in associates, P200,000; Available for sale investments, P100,000; Inventories P200,000; Trade and other receivables, P300,000; Financial assets at fair value through profit or loss, P150,000; Cash and cash equivalents, P100,000; Share capital P800,000; Other reserves, P300,000; Retained profits, P250,000; Non-controlling interest, P250,000; Long-term borrowings, P200,000; Deferred tax, P50,000; Long-term provisions, P100,000; Trade and other payables, P200,000; Short-term borrowings, P50,000; Current portion of long-term borowngs, P30,000; Curent tax payable, P150,000 and Short-term provisions, P20,000. 1.1. The accounts and balances shown below…
The adjusted trial balance for Tybalt Construction on December 31 of the current year follows. TYBALT CONSTRUCTIONAdjusted Trial BalanceDecember 31No.Account TitleDebit Credit101Cash$5,000 104Short-term investments 23,000 126Supplies 8,100 128Prepaid insurance 7,000 167Equipment 40,000 168Accumulated depreciation—Equipment $20,000 173Building 150,000 174Accumulated depreciation—Building 50,000 183Land 55,000 201Accounts payable 16,500 203Interest payable 2,500 208Rent payable 3,500 210Wages payable 2,500 213Property taxes payable 900 236Unearned revenue 7,500 244Current portion of long-term note payable 7,000 251Long-term notes payable 60,000 307Common stock 5,000 318Retained earnings 121,400 319Dividends 13,000 404Services revenue 97,000 406Rent revenue 14,000 407Dividends revenue 2,000 409Interest revenue 2,100 606Depreciation expense—Building 11,000 612Depreciation expense—Equipment 6,000 623Wages expense 32,000 633Interest expense 5,100 637Insurance expense 10,000 640Rent expense…
Prepare correcting entries as of December 31, 2020 1. Depreciation computed on the building for the years 2018, 2019 and 2020 were overstated by P 12,000 per year. 2. Cost of the minor repair on the machinery of P 1,500, made on June 30, 2019, was charged to the machinery account. Machinery is being depreciated at an annual rate of 10%. 3. Unused office supplies as of December 31, 2019 of P 1,250 were overlooked. The company debits office supplies expense account upon purchase of supplies. 4. 3-year insurance premium of P 12,000 was paid on October 1, 2018. The amount was charged to insurance expense account and no adjustments for the unexpired premium had been taken up. 5. Merchandise purchased in 2019 of P 22,000, terms FOB shipping point, were taken up in the books when the goods were received in January 2020. These items were not included in the inventory count made on December 31, 2019. 6. Merchandise sold for P 45,000 was delivered in 2018 and were recorded in…
QUESTION TWO The following information relating to property plant and equipment was extracted fromthe accounting records of Fred’s Transport for year ended 28 February 2022;1. Balances at 28 February 2021:- Equipment at cost R 56 000- Accumulated depreciation: equipment R 10 860- Vehicles at cost R560 000- Accumulated depreciation: vehicles R285 360 2. The following transactions in respect of property, plant and equipment took placeduring the current financial year:2.1 An old vehicle was sold on 31 August 2021 for R144 000 cash. The cost priceof the vehicle sold was R240 000, and its accumulated depreciation amountedto R120 100 on 1 March 2021. The proceeds from the sale of the vehicle wasused to partially finance the purchase of another vehicle for R440 000 boughton 1 September 2021.2.2 On 28 February 2022 sold used equipment for R14 400 cash. The accumulateddepreciation on this equipment was R3 280 at 1 March 2021. The cost price ofthe equipment was R18 000.3. Depreciation must still…
Adjustment for Depreciation of Asset On December 1, delivery equipment was purchased for $7,200. The delivery equipment has an estimated useful life of four years (48 months) and no salvage value. Using the straight-line depreciation method, analyze the necessary adjusting entry as of December 31 (one month) using T accounts, and then formally enter this adjustment in the general journal. (Income Statement)Depr. Expense—Delivery Equipment Adj. fill in the blank 2bfe8602202f07b_1 (Balance Sheet)Accum. Depr.—Delivery Equipment Adj. fill in the blank 2bfe8602202f07b_2 Page: DATE ACCOUNT TITLE DOC.NO. POST.REF. DEBIT CREDIT 1 20--Dec. 31 fill in the blank a9d99cf16046fab_2 fill in the blank a9d99cf16046fab_3 1 2 fill in the blank a9d99cf16046fab_5 fill in the blank a9d99cf16046fab_6 2