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a) Journalize the unrecorded transactions listed above using a perpetual inventory system (OMIT Explanations). b)Prepare an adjusted trial balance as at December 31, 2019. c)From the adjusted Trial Balance, prepare an Income Statement and a Retained Earnings Statement for the year ended December 31, 2019.

a) Journalize the unrecorded transactions listed above using a perpetual inventory system (OMIT Explanations). b)Prepare an adjusted trial balance as at December 31, 2019. c)From the adjusted Trial Balance, prepare an Income Statement and a Retained Earnings Statement for the year ended December 31, 2019.

Intermediate Accounting: Reporting And Analysis
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
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 9RE: Refer to RE6-8. On April 23, 2020, McKinncy Co. receives a check, from Mangold Corporation for...
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a) Journalize the unrecorded transactions listed above using a perpetual inventory system (OMIT Explanations).

b)Prepare an adjusted trial balance as at December 31, 2019.

c)From the adjusted Trial Balance, prepare an Income Statement and a Retained Earnings Statement for the year ended December 31, 2019.

Packard Company has hired you to review and update their financials as at December 31, 2019. The below unadjusted trial balance template at December 31, 2019, was provided to you. DEBIT 23,000 CREDIT Cash Accounts Receivable 51,000 Supplies Inventory 3,200 19,500 65,000 Land Buildings Equipment Motor Vehicle/Delivery Truck 95,000 40,000 5,000 Allowance for Doubtful Debts 450 Accumulated Depreciation-Buildings Accumulated Depreciation-Motor Vehicle/Del Truck Accumulated Depreciation-Equipment Accounts Payable Salaries and Wages Payable 30,000 2,250 14,400 19,300 Unearned Rent Revenue 8,000 6,000 Notes Payable (due in 2020) Interest Payable Notes Payable (due after 2020) Share Capital-Ordinary Retained Earnings 30,000 54,400 75,500 Dividends 9,200 Sales Revenue 570,000 Rent Revenue Gain/(Loss) on Disposal of Plant Assets Cost of Goods Sold 400,000 Sales Discount Bad Debt Expense Depreciation Expense Supplies Expense Interest Expense Other Operating Expenses Salaries and Wages Expense 2,500 31,000 65,000 ТОTAL 809,850 809,850
Transcribed Image Text:Packard Company has hired you to review and update their financials as at December 31, 2019. The below unadjusted trial balance template at December 31, 2019, was provided to you. DEBIT 23,000 CREDIT Cash Accounts Receivable 51,000 Supplies Inventory 3,200 19,500 65,000 Land Buildings Equipment Motor Vehicle/Delivery Truck 95,000 40,000 5,000 Allowance for Doubtful Debts 450 Accumulated Depreciation-Buildings Accumulated Depreciation-Motor Vehicle/Del Truck Accumulated Depreciation-Equipment Accounts Payable Salaries and Wages Payable 30,000 2,250 14,400 19,300 Unearned Rent Revenue 8,000 6,000 Notes Payable (due in 2020) Interest Payable Notes Payable (due after 2020) Share Capital-Ordinary Retained Earnings 30,000 54,400 75,500 Dividends 9,200 Sales Revenue 570,000 Rent Revenue Gain/(Loss) on Disposal of Plant Assets Cost of Goods Sold 400,000 Sales Discount Bad Debt Expense Depreciation Expense Supplies Expense Interest Expense Other Operating Expenses Salaries and Wages Expense 2,500 31,000 65,000 ТОTAL 809,850 809,850
Upon review, you identified the following transactions which were never recorded: 1. The Building is being depreciated using the straight-line method over 30 years. The salvage value is $5,000. 2. The Equipment is being depreciated using the straight-line method over 10 years. The salvage value is $4,000. 3. The Delivery Truck in the trial balance was sold for $3,500 cash during the year. No entry to record the gain or loss on sale was recorded. 4. On April 1, 2019, Packard purchased a new delivery truck for $24,000, with a useful life of 5 years, fully paid in cash. It is being depreciated using the double-declining method. 5. On December 12, 2019, Purchased 3,000 units of merchandise on account at $4.00 per unit terms 1/10, n/30. The merchandise was paid for in full on December 22, 2019, less discount. 6. On December 17, 2019, Sold 2,500 units of merchandise on account at $6.40 each, terms 2/10, n/30. The cost price of the merchandise sold was $4.00 per unit. 7. On December 26, 2019 Received collections in full, less discounts, from customers billed on December 17. 8. Packard estimates Allowance for Doubtful Debt to be 1% of Sales Revenue at year-end. 9. Unpaid salaries and wages at December 31, 2019, total $18,000. 10. Supplies on hand $1,700. 11. Interest expense is payable for the year for both the short-term and long-term notes payable at a 10% interest rate. 12. On December 1, 2019, three-quarter of unearned rent was received. Additional Information: Packard company banks with Flint State Bank. The bank statement on December 31, 2019 showed the following balance: FLINT STATE BANK Check and Debits Deposits and Credits Daily Cash Balance XXX XXX 12/31 $ 8,225 A comparison of the cash balance per bank in the bank statement with the cash balance per books (after recording the unrecorded transactions) revealed the following facts: 1. Checks totalling $2,225 written during the year, have not been presented as at Dec 31. 2. Deposits in transit were $2,100. 3. Included with cancelled checks was a check issued by Parr Company to Henry Ford for $900 that was incorrectly charged to Packard Company by the bank. 4. A salary cheque to an employee for $6,300 was recorded by the bank for $3,600. 2018 Data Accounts Receivable $31,800 Inventory $32,500 Total Assets $290,540
Transcribed Image Text:Upon review, you identified the following transactions which were never recorded: 1. The Building is being depreciated using the straight-line method over 30 years. The salvage value is $5,000. 2. The Equipment is being depreciated using the straight-line method over 10 years. The salvage value is $4,000. 3. The Delivery Truck in the trial balance was sold for $3,500 cash during the year. No entry to record the gain or loss on sale was recorded. 4. On April 1, 2019, Packard purchased a new delivery truck for $24,000, with a useful life of 5 years, fully paid in cash. It is being depreciated using the double-declining method. 5. On December 12, 2019, Purchased 3,000 units of merchandise on account at $4.00 per unit terms 1/10, n/30. The merchandise was paid for in full on December 22, 2019, less discount. 6. On December 17, 2019, Sold 2,500 units of merchandise on account at $6.40 each, terms 2/10, n/30. The cost price of the merchandise sold was $4.00 per unit. 7. On December 26, 2019 Received collections in full, less discounts, from customers billed on December 17. 8. Packard estimates Allowance for Doubtful Debt to be 1% of Sales Revenue at year-end. 9. Unpaid salaries and wages at December 31, 2019, total $18,000. 10. Supplies on hand $1,700. 11. Interest expense is payable for the year for both the short-term and long-term notes payable at a 10% interest rate. 12. On December 1, 2019, three-quarter of unearned rent was received. Additional Information: Packard company banks with Flint State Bank. The bank statement on December 31, 2019 showed the following balance: FLINT STATE BANK Check and Debits Deposits and Credits Daily Cash Balance XXX XXX 12/31 $ 8,225 A comparison of the cash balance per bank in the bank statement with the cash balance per books (after recording the unrecorded transactions) revealed the following facts: 1. Checks totalling $2,225 written during the year, have not been presented as at Dec 31. 2. Deposits in transit were $2,100. 3. Included with cancelled checks was a check issued by Parr Company to Henry Ford for $900 that was incorrectly charged to Packard Company by the bank. 4. A salary cheque to an employee for $6,300 was recorded by the bank for $3,600. 2018 Data Accounts Receivable $31,800 Inventory $32,500 Total Assets $290,540
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