arranty payable is a current liability. mayable: wility $7,140 iability 3,360 pension liability is a long-term liability. wility $70,000 Пability 630,000 Kornett Company
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- Anderson Air is a customer of Handler Cleaning Operations. For Anderson Airs latest purchase on January 1, 2018, Handler Cleaning Operations issues a note with a principal amount of $1,255,000, 6% annual interest rate, and a 24-month maturity date on December 31, 2019. Record the journal entries for Handler Cleaning Operations for the following transactions. A. Entry for note issuance B. Subsequent interest entry on December 31, 2018 C. Honored note entry at maturity on December 31, 2019The balance in Ashwood Companys accounts payable account at December 31, 2019, was 1,200,000 before any necessary year-end adjustment relating to the following: Goods were in transit from a vendor to Ashwood on December 31, 2019. The invoice cost was 85,000, and the goods were shipped FOB shipping point on December 29, 2019. The goods were received on January 2, 2020. Goods shipped FOB shipping point on December 20, 2019, from a vendor to Ashwood were lost in transit. The invoice cost was 40,000. On January 5, 2020, Ashwood filed a 40,000 claim against the common carrier. Goods shipped FOB destination on December 22, 2019, from a vendor to Ashwood were received on January 6, 2020. The invoice cost was 20,000, What amount should Ashwood report as accounts payable on its December 31,2019, balance sheet? a. 1,260,000 b. 1,285,000 c. 1,325,000 d. 1,345,000SUTA taxes on July 31, 20--. WORKERS COMPENSATION INSURANCE AND ADJUSTMENT Columbia Industries estimated that its total payroll for the coming year would be 385,000. The workers compensation insurance premium rate is 0.2%. REQUIRED 1. Calculate the estimated workers compensation insurance premium and prepare the journal entry for the payment as of January 2, 20--. 2. Assume that Columbia Industries actual payroll for the year is 396,000. Calculate the total insurance premium owed and prepare a journal entry as of December 31, 20--, to record the adjustment for the underpayment. The actual payment of the additional premium will take place in January of the next year.
- Rasheed Company uses net method to record the sales made on credit. On June 30, 2019, it made sales of $45,000 with term 2/15, n/45. Prepare the required journal entries, if: On July 22 Rasheed company received full payment.Pedroni Enterprises issues a $260,000, 45 day 5 % note to Zorzi Industries for merchandise inventory Journalize Pedroni Enterprises entries to record: The issuance of the note The payment of the note at maturity Journalize Zorzi Industries entries to record: The receipt of the note Receipt of the payment of the note at maturity On July 31, 2019 the balances of the accounts appearing in the ledger of Pedroni Interiors company a furniture wholesales, are as follows. Accumulated Depreciation – Building $365,000 Ray Zorzi – Capital $530,000 Administrative Expenses 440,000 Ray Zorzi – Drawing 15,000 Building 810,000 Sales 1,437,000 Cash 78,000 Sales tax Payable 4,500 Cost of Merchandise Sold…On June 30, 2024, the Esquire Company sold some merchandise to a customer for $68,000. In payment, Esquire agreed to accept a 9% note requiring the payment of interest and principal on March 31, 2025. The 9% rate is appropriate in this situation. Required: Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods sold), the December 31, 2024 interest accrual, and the March 31, 2025 collection. If the December 31 adjusting entry for the interest accrual is not prepared, by how much will income before income taxes be over- or understated in 2024 and 2025?
- On November 1, 2019, Sherman Company sold $20,000 of merchandise inventory to a customer that originally cost $11,000. Sherman accepted a 90 day note receivable from the customer as payment for the inventory. The customer agreed to a 4% interest rate and will pay both principle and interest on January 31, 2020. Sherman Company closes their accounting records on December 31 and will need to prepare financial statements on that date. Required: Prepare journal entries for Sherman Company for: 1) November 1, 2019 – the date of sale 2) December 31, 2019 – adjustment (to recognize interest revenue) 3) January 31, 2020 – to record customer payment of principle and interestOn, November 1, 2025, Ashton, Inc. purchased merchandise inventory for $38,000 by signing a note payable. The note is for 6 months and bears interest at a rate of 9%. The journal entry to record the accrued interest expense on December, 31, 2025 would be:Med Labs has the following December 31 year-end unadjusted balances: Allowance for Sales Discounts, $0; and Accounts Receivable, $5,000. Of the $5,000 of receivables, $1,000 are within a 2% discount period, meaning that it expects buyers to take $20 in future-period discounts arising from this period’s sales. a. Prepare the December 31 year-end adjusting journal entry for future sales discounts. b. Assume the same facts above and that there is a $5 year-end unadjusted credit balance in Allowance for Sales Discounts. Prepare the December 31 year-end adjusting journal entry for future sales discounts. c. Is Allowance for Sales Discounts a contra asset or a contra liability account?
- On June 30, 2024, the Esquire Company sold some merchandise to a customer for $56,000. In payment, Esquire agreed to accept a 8% note requiring the payment of interest and principal on March 31, 2025. The 8% rate is appropriate in this situation. Required: Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods sold), the December 31, 2024 interest accrual, and the March 31, 2025 collection. If the December 31 adjusting entry for the interest accrual is not prepared, by how much will income before income taxes be over- or understated in 2024 and 2025? Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods sold), the December 31, 2024 interest accrual, and the March 31, 2025 collection.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. June…Douglas Corporation reports it sold merchandise on account for a total of $800,000 for the current year. The cost to Douglas for the merchandise was $300,000. To encourage early payment, Douglas offers its customers credit terms of 1/10, n/30. At year-end, there is $150,000 of sales on account still eligible for the 1 percent discount. Douglas believes that all customers will pay within the discount period to receive the discount. Prepare the adjusting journal entry needed for Douglas Corporation to comply with the new revenue recognition standard. Assume Douglas’s fiscal year-end is December 31.Make the corresponding journal entries to report short-term liabilities. Make the journal entries. Make the adjusting entries for each expense accrued at the end of the year. The cost of the product warranty is $7,000. a. Journalizes the remaining interest on the Home Depot account. Date Transaction 2 February Merchandise was purchased on credit for $310,000 with a term of n/45 at Pueblo Caribe. 4 March Air Caribe provided a 5% note for $120,000 to Pueblo Caribe with a term of 30 days on credit. 6 May Pueblo Caribe paid the amount of the March 4 note. 10 May Consoles were purchased from Aire al Mayor for $75,000 on a 90-day note with a 4% discount. With payments of 25,000 per month. 12 June Borrowed (short term note/note payable) 30 days at 3% for $240,000 from Bank City. 15 June The past due amount of the May 10 transaction was paid. A customer purchased $2,000 of merchandise in cash. 18 July The…