Company information: Above is the unadjusted trial balance for Rock Bottom Harbor Clothing Corporation. They are a calendar year corporation. They close their books on December 31st of every year.  A. Prepare adjusting journal entries for the following.                            1. Equipment is depreciated based on a 8-year life. The equipment has no salvage value. It was purchased on January 1, 2015.            2. The bad debt expense is estimated to be $1,450. They use the percentage of sales method allowed by GAAP.                3. The insurance was prepaid on January 1, 2018. It covers the period from January 1, 2018 thru December 31, 2019.                4. The sales team worked the last week in December, but will not be paid until January 5th.  They earned $2,750 for the 5 days of work.          5. The note payable is due next July (short term). The interest that has accrued on the loan is $1,850, but has not been paid or recorded as of December 21, 2018.      6. Advertising was paid in advance on November 1, 2018. The amount was $1,100. The company plans to do a large spread, magazine advertisement on January 15, 2019.           A new staff account inadvertantly charged the full amount to expense.                         7. Office supplies on hand totaled $900. That same inexperienced staff accountant had charged the full $4,200 to expense even though all of the supplies had not been used at December 31.       8. After an inventory count at year end, the staff accountant noted that the inventory market value was lower than what was on the books (cost). Market value is $68,250 on December 31.      9.  The rent was paid in advance, for the full year, on January 1, 2018.                      Trial Balance  December 31, 2018                   Debit   Credit     Cash    $   22,500         Accounts Receivable         17,350         Allowance for Doubtful Accounts        $         600     Inventory, December 31         70,350         Prepaid Insurance            5,200         Prepaid Rent         15,000         Equipment         60,000         Accumulated Depreciation- Eqpuipment         22,500     Accounts Payable             17,000     Notes Payable             25,000     Common Stock             10,000     Retained Earnings             92,450     Sales Revenue           397,300     Cost of Goods Sold       207,400         Salaries Expense (sales)         59,850         Advertising Expense         26,700         Salaries Expense (administration)         76,300         Supplies Expense            4,200            Total    $ 564,850    $ 564,850

Metlock, Inc., spent $48,600 in attorney fees while developing the trade name of its new product, the Mean Bean Machine. Prepare the journal entries to record the $48,600 expenditure and the first year's amortization, using an 6-year life. Use the account title "Trade Names". (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit (To record expenditure of trade names) (To record amortization expense)

Shi Company is going through a Chapter 7 bankruptcy. All assets have been liquidated, and the company retains only $26,600 in free cash. The following debts, totaling $45,050, remain: Government claims to unpaid taxes Salary during last month owed to Mr. Key (not an officer) Administrative expenses Salary during last month owed to Ms. Rankin (not an officer) Unsecured accounts payable $ 7,400 19,225 3,850 Indicate how much money will be paid to the creditor associated with each debt. Types of Debts Administrative expenses Salary during last month owed to Mr. Key and Ms. Rankin 6,625 7,950 Answer is complete but not entirely correct. Amounts 3,850 $12.850 $ 3,716 $26,600 Government claims to unpaid taxes

Pastina Company manufactures and sells various types of pasta to grocery chains as private label brands. The company’s fiscal year-end is December 31. The unadjusted trial balance as of December 31, 2011, appears below:     The equipment is being depreciated using the straight-line method over an eight-year useful life with $10,000 salvage value. The company estimates that 4% of all year-end accounts receivable probably will not be collected. Employee wages are paid twice a month, on the 22nd wages earned for the 1st through the 15th , and on the 7th of the following month for wages earned from the 16th through the end of month. Wages earned from December 16 through December 31, 2011, were $1,565. On October 1, 2011, Pastina borrowed $50,800 from a local bank and signed a note. The note requires interest to be paid annually on September 30 at 10%. The principal is due in 10 years. On April 1, 2011, the company lent a supplier $28,000 and a note was signed requiring principal and…

On January 1, year 1, Wardags Co. purchased a P6,000,000 machine, with a five-year useful life and no salvage value. The machine was depreciated by an accelerated method for book and tax purposes. The machine’s carrying amount was P2,400,000 on December 31, year 2. On January 1, year 3, Wardags changed to the straight-line method for financial reporting purposes. Wardags can justify the change. Wardags’s income tax rate is 30%. In its year 3 income statement,   1. What amount should Warren report as the cumulative effect of this change? 2. On January 1, year 3, what amount should Warren report as deferred income tax liability as a result of the change?

Tamarisk Cole Inc. acquired the following assets in January of 2018. Equipment, estimated service life, 5 years; salvage value, $15,500   $546,500 Building, estimated service life, 30 years; no salvage value   $639,000 The equipment has been depreciated using the sum-of-the-years’-digits method for the first 3 years for financial reporting purposes. In 2021, the company decided to change the method of computing depreciation to the straight-line method for the equipment, but no change was made in the estimated service life or salvage value. It was also decided to change the total estimated service life of the building from 30 years to 40 years, with no change in the estimated salvage value. The building is depreciated on the straight-line method. (a)   Prepare the general journal entry to record depreciation expense for the equipment in 2021. (b)   Prepare the journal entry to record depreciation expense for the building in 2021. (Round answers to 0 decimal places,…

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Muscat Bakery LLC bought a Toyota Hiace Van for its business in July 2018. The cost of the Van is RO 12000 and the useful life is 5 years. The depreciated was provided in the accounts using Declining Balance method. The company sells the van on 31 Dec 2020 for RO 6000. The amount of Profit /loss to the transferred to the Income statement will be a. RO 120 Loss b. RO 1728 Profit c. RO 912 Profit d. RO 912 Loss

On April 1, 2013 ABC purchased equipment that cost $80,000. The expected useful life is 4 years and the estimated salvage value at the end of its life is $20,000. The company uses Straight-Line depreciation method. The accounting period ends Dec. 31 each year.What is the impact on Assets, Liabilities, SE and NI if ABC neglects to enter the adjusting entry?