Wildhorse had the following account balances at December Cash $24,000 Accounts Receivable 25,000 50,000 Supplies Prepaid Insurance Inventory Equipment 5. 6. 7. 8. 9. Accumulated Depreciation, Equipment Wages Payable Accounts Payable 3,000 Common Shares 46,500 Retained Earnings 75,000 During 2024, the following transactions occurred: 1. Sales of paninis for cash were $654,000, and sales of paninis on account were $60,000. 2. Purchases of ingredients were $176,000, all on account. 3. Information for adjusting entries: 10. 11. 12. Collections from customers for sales on account totalled $18,100. The company paid $45,300 for utilities expenses. Ingredients with a cost of $200,000 were used in paninis that were sold. Payments for ingredients purchased on account totalled $221,000. The company paid $95,500 for wages. A dividend of $35,200 was declared and paid at the end of the year. 25,000 6,000 50,000 75,000 67.500 The balance in the Supplies account at the end of 2024 was $1,200. Wages owed to employees at the end of 2024 were $3,520. At the end of 2024, the account balance in Prepaid Insurance was $1.500. The equipment had an estimated useful life of eight years with a residual value of $3,000.

Wildhorse had the following account balances at December Cash $24,000 Accounts Receivable 25,000 50,000 Supplies Prepaid Insurance Inventory Equipment 5. 6. 7. 8. 9. Accumulated Depreciation, Equipment Wages Payable Accounts Payable 3,000 Common Shares 46,500 Retained Earnings 75,000 During 2024, the following transactions occurred: 1. Sales of paninis for cash were $654,000, and sales of paninis on account were $60,000. 2. Purchases of ingredients were $176,000, all on account. 3. Information for adjusting entries: 10. 11. 12. Collections from customers for sales on account totalled $18,100. The company paid $45,300 for utilities expenses. Ingredients with a cost of $200,000 were used in paninis that were sold. Payments for ingredients purchased on account totalled $221,000. The company paid $95,500 for wages. A dividend of $35,200 was declared and paid at the end of the year. 25,000 6,000 50,000 75,000 67.500 The balance in the Supplies account at the end of 2024 was $1,200. Wages owed to employees at the end of 2024 were $3,520. At the end of 2024, the account balance in Prepaid Insurance was $1.500. The equipment had an estimated useful life of eight years with a residual value of $3,000.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 11PA: Prepare journal entries to record the following transactions. Create a T-account for Prepaid...

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