Related questions
Utilize the Chart of Accounts listed below to answer questions A, B, and C.
Green has the following accounts in its General Ledger:
Cash Accounts Payable
Supplies Wages Payable Service Revenue
Inventory Unearned Service Revenue Supplies Expense
Prepaid Maintenance Unearned Maintenance Revenue Maintenance Expense
Equipment Notes Payable Wages Expense
(A.)
On March 1, 2017 Green Company purchased $12,500 of office supplies. On that date Green recorded the supplies purchase transaction as follows:
Dr. Cr.
Supplies 12,500
Cash 12,500
The entry above is the only entry Green has made related to this item. The balance was zero in the Supplies account prior to the above entry.
On March 31, 2017 Green counted the office supplies and determined there were $9,300 remaining.
In the General Journal below record the required March 31, 2017
(B.)
Green’s employees are paid in cash each Friday for that week’s work and the payment of the payroll is recorded in the accounting system. The last payday of March was on Friday March 26.
The employees worked on Monday March 29th, Tuesday March 30th, and Wednesday March 31st. The employees earned a total of $1,200 for these last three days of March.
In the General Journal below record the required March 31 adjusting journal entry.
(C.)
On March 1, 2017 Green Company purchased a new piece of equipment for $210,000 cash. On March 1 Green recorded the equipment purchase with a Debit to the Equipment account and a Credit to the Cash account. Green estimates that the equipment will last 7 years. Green also estimates that at the end of 7 years the equipment will have no future value and will be scrapped. Green uses the
In the General Journal below record the required March 31, 2017 adjusting journal entry for March’s depreciation of the equipment.
Trending nowThis is a popular solution!
Step by stepSolved in 4 steps
- The following items are taken from the financial statements of the Freight Service for the year ending December 31, 2021: Accounts payable Accounts receivable Accumulated depreciation-equipment Advertising expense Cash Owner's capital (1/1/16) Owner's drawings Depreciation expense Insurance expense Note payable, due 6/30/17 Prepaid insurance (12-month policy) Rent expense Salaries & wages expense Service revenue Supplies Supplies expense Equipment O $44,000 O $14,000 $33.000 $19,000 13,000 26,000 21,200 15,000 104,000 11,000 12,000 3,800 72,000 $135,000 7,200 16,000 32,000 135,000 What is the company's net income for the year ending December 31, 2016? 5,000 6,000 210,000arrow_forwardA company's January 1, 2014 balance sheet reported total assets of $163,000 and total liabilities of $66,500. During January 2014, the company completed the following transactions: (A) paid a note payable using $16,500 cash (no interest was paid); (B) collected a $15,500 accounts receivable; (C) paid a $6,300 accounts payable; and (D) purchased a truck for $6,300 cash and by signing a $26,500 note payable from a bank. The company's January 31, 2014 balance sheet would report which of the following? Assets Liabilities Stockholders' Equityarrow_forward1. Consider the following financial information about Sam's Cake Factory for Dec. 31, 1999. The company assets are cash, $3,350; notes receivable, $1,546; accounts receivable, $4,675; merchandise inventory, $2,345; land, $90,125; equipment, $15,560. The liabilities are accounts payable, $18,575; wages payable, $25,432; notes payable, $26,821. The owner's cap- ital is $46,773. We also have the following financial information for Dec. 31, 1998: The company assets are cash, $2,200; notes receiv- able, $1,490; accounts receivable, $4,496; merchandise inventory, $2,857; land, $85,945; equipment, $17,651. The liabili- ties are accounts payable, $16,532; wages payable, $22,351; notes payable, $24,956. The owner's capital is $50,700. (a) Create a balance sheet for each of the above. (b) Perform a vertical analysis on each balance sheet. (c) Perform a comparative analysis of the two balance sheets. (d) Perform a horizontal analysis using the two balance sheets.arrow_forward
- The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 2017: Cash Accounts Receivable Inventory Estimated Returns Inventory Office Supplies Prepaid Insurance Office Equipment 10,500 8,100 245,400 Accumulated Depreciation Office Equipment 166,800 Store Equipment 766,100 Accumulated Depreciation-Store Equipment 245,400 Accounts Payable 166,800 Salaries Payable 10,800 Customer Refunds Payable 10,000 Estimated Coupons Payable 3,000 Note Payable (final payment due in 20 years) 357,500 61,400 491,600 66,800 Common Stock Retained Earnings Dividends Sales Cost of Goods Sold Sales Salaries Expense Advertising Expense Depreciation Expense-Store Equipment Miscellaneous Selling Expense Office Salaries Expense Rent Expense $111,500 297,400 339,000 5,000 4,085,000 2,362,800 Insurance Expense Depreciation Expense- Office Equipment Office Supplies Expense Miscellaneous Administrative Expense Interest Expense Required: 1. Prepare…arrow_forwardShown below in alphabetical order are the accounts for Reduce Reuse Remodel, Inc. at the end of the company’s fiscal year, June 30, 2021. The amounts are rounded to the nearest $1,000. Accounts payable $ 30 Notes payable (due in 5 years) $100 Accounts receivable 18 Prepaid insurance 8 Accumulated depreciation 160 Remodeling revenue 650 Cash 15 Rent expense 63 Common stock 150 Retained earnings, 7/1/20 79 Depreciation expense 40 Salaries expense 150 Dividends 25 Salaries payable 17 Equipment 500 Supplies 31 Income taxes payable 3 Supplies expense 275 Miscellaneous expense 84 Unearned revenue 20 Calculate Net Income for the year ending 6/30/21.arrow_forwardYou observe a company with the following items on the balance sheet (in thousands): Cash and equivalents 2018: $22 Cash and equivalents 2017: $23 Inventory 2018: $26 Inventory 2017: $21 Accounts receivable 2018: $144 Accounts receivable 2017: $129 Property, Plant, and Equipment 2018: $1,584 Property, Plant, and Equipment 2017: $1,663 Current Liabilities 2018: $247 Current Liabilities 2017: $291 Long-term debt 2018: $857 Long-term debt 2017: $1,494 What is the change in net working capital for the firm for these years. Answer in thousands (the same as how the numbers are presented).arrow_forward
- Renegade Landscaping's general ledger includes the following account balances on December 31, 2018 Accounts Payable Interest Payable Salaries Payable Notes Payable, Current Portion Notes Payable, Long-Term Portion $19,560 a) Calculate current liabilities. Required Do not enter dollar signs or commas in the input boxes. Total Current Liabilities: $ $11,570 $520 b) Calculate long-term liabilities. Total Long-Term Liabilities: $ $14,220 $19,560arrow_forwardBoat yard inc. repairs, cleans, and stores boats for customers. They are preparing monthly financial statements for November 30, 2018 using accrual accounting. On November 30, the Boat yard cleaned three boats but did not record the service fees of $33,300, paid $2,400 cash for a radio ad to air in January 2019, the inventory count showed usage of $18,900 in boat supplies, and wage expenses were $4,000. 1.)what is the adjusting entry to accrued revenues earned? 2.)Prepare an income statement for Boat yard inc for the month ended November 30, 2018.arrow_forwardGwynn Incorporated had the following transactions involving current assets and current liabilities during February 2017 Additional information: As of February 1, 2017, current assets were $120,000 and current liabilities were $40,000. Instructions Compute the current ratio as of the beginning of the month and after each transactionarrow_forward
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education