Following are accounts and year-end adjusted balances of Cruz Company as of December 31. Number Account Title 101 Cash 126 128 167 168 Accumulated depreciation-Equipment 301 A. Cruz, Capital 302 A. Cruz, Withdrawals 403 Services revenue 612 Supplies Prepaid insurance Equipment 622 Salaries expense 637 Insurance expense 640 652 Depreciation expense-Equipment Required 1 Rent expense Supplies expense Totals < Required 2 View transaction list 1. Prepare the December 31 closing entries. The account number for Income Summary is 901. 2. Prepare the December 31 post-closing trial balance. Note: The A. Cruz, Capital account balance was $42,707 on December 31 of the prior year. Journal entry worksheet Complete this questions by entering your answers in the tabs below. 1 Debit $ 18,000 11,600 2,000 23,000 2 6,000 2,000 28,392 Prepare the December 31 closing entries. The account number for Income Summary is 901. 3 Credit 4 $6,500 42,707 48,700 2,045 3,263 1,607 $ 97,907 $ 97,907

Following are accounts and year-end adjusted balances of Cruz Company as of December 31. Number Account Title 101 Cash 126 128 167 168 Accumulated depreciation-Equipment 301 A. Cruz, Capital 302 A. Cruz, Withdrawals 403 Services revenue 612 Supplies Prepaid insurance Equipment 622 Salaries expense 637 Insurance expense 640 652 Depreciation expense-Equipment Required 1 Rent expense Supplies expense Totals < Required 2 View transaction list 1. Prepare the December 31 closing entries. The account number for Income Summary is 901. 2. Prepare the December 31 post-closing trial balance. Note: The A. Cruz, Capital account balance was $42,707 on December 31 of the prior year. Journal entry worksheet Complete this questions by entering your answers in the tabs below. 1 Debit $ 18,000 11,600 2,000 23,000 2 6,000 2,000 28,392 Prepare the December 31 closing entries. The account number for Income Summary is 901. 3 Credit 4 $6,500 42,707 48,700 2,045 3,263 1,607 $ 97,907 $ 97,907

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Adjusting Entries The bookkeeper for Joe’s Hardware Co. records all revenue and expense items in nominal accounts during the period. The following balances, among others, are listed on the trial balance at the end of the fiscal period, December 31, 2013, before accounts have been adjusted: Dr. (Cr.) Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $123,000 Allowance for Bad Debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,700) Interest Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,200 Discount on Notes Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300 Prepaid Real Estate and Personal Property Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .…
The ledger of Ivanhoe Company contains the following balances: Owner’s Capital $31,500, Owner’s Drawings $2,800, Service Revenue $49,000, Salaries and Wages Expense $27,600, and Supplies Expense $6,800.Prepare the closing entries at December 31.
Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar year-end December 31 follow. Debit Credit a. Interest revenue $ 15,900 b. Depreciation expense—Equipment $ 35,900 c. Loss on sale of equipment 27,750 d. Accounts payable 45,900 e. Other operating expenses 108,300 f. Accumulated depreciation—Equipment 73,500 g. Gain from settlement of lawsuit 45,900 h. Accumulated depreciation—Buildings 178,300 i. Loss from operating a discontinued segment (pretax) 20,150 j. Gain on insurance recovery of tornado damage 31,020 k. Net sales 1,017,500 l. Depreciation expense—Buildings 53,900 m. Correction of overstatement of prior year’s sales (pretax) 17,900 n. Gain on sale of discontinued segment’s assets (pretax) 43,500 o. Loss from settlement of lawsuit 25,650 p. Income…
Appendix: Completing an End-of-Period Spreadsheet Alert Security Services Co. offers security services to business clients. Complete the following end-of-period spreadsheet for Alert Security Services Co.: If an amount box does not require an entry, leave it blank. Alert Security Services Co. End-of-Period Spreadsheet (Work Sheet) For the Year Ended October 31, 20Y7 Account Title AdjustedTrial BalanceDebit AdjustedTrial BalanceCredit Income StatementDebit Income StatementCredit Balance SheetDebit Balance SheetCredit Cash 12 fill in the blank 1 fill in the blank 2 fill in the blank 3 fill in the blank 4 Accounts Receivable 103 fill in the blank 5 fill in the blank 6 fill in the blank 7 fill in the blank 8 Supplies 4 fill in the blank 9 fill in the blank 10 fill in the blank 11 fill in the blank 12 Prepaid Insurance 2 fill in the blank 13 fill in the blank 14 fill in the blank 15 fill in the blank 16 Land 190 fill in the blank 17 fill in the blank 18 fill…
The following selected accounts and normal balances existed at year-end. Record the journal entries required to close the books
PROBLEM 1: The transactions of Dragon Company for December 2020 are shown below. Requirements: (a) Journalize each transaction and prepare the necessary adjusting entries; and (b) Prepare the current liabilities section of the balance sheet for the month ended December 31, 2020. Dec 1 Purchased P1,250,000 inventory on account. Received P200,000 from a lessee as an advance payment for rent over five months starting December 2020. Billed a customer who bought 400 units at P4,500 each. It is expected that 6% of the units will be defective and that repair costs will average P1,350 per unit Dec 3 Dec 9 Dec 15 Borrowed P900,000 from a bank by signing a 9-month, 10%, interest-bearing note. Dec 21 Paid P820,000 on account for inventory purchased on December 1. Dec 27 Sued by a disgruntied employee. Legal counsel believes that it is possible that the company will have to pay P80,000 in damages next year. Dec 30 Purchased new equipment for P650,000, paying P200,000 cash and signing a 3-year, 7%…
REQUIRED Prepare the Statement of Comprehensive Income of Dundee Traders for the year ended 28 February 2023. INFORMATION The pre-adjustment trial balance and additional information given below were extracted from the accounting records of Dundee Traders on 28 February 2023, the end of the financial year. DUNDEE TRADERS PRE-ADJUSTMENT TRIAL BALANCE AS AT 28 FEBRUARY 2023 Debit (R) Credit (R) Balance sheet accounts section Capital 750 000 Drawings 325 000 Vehicles at cost 1 000 000 Equipment at cost 600 000 Accumulated depreciation on vehicles 455 000 Accumulated depreciation on equipment 195 000 Trading inventory 320 000 Debtors control 165 000 Provision for bad debts 5 000 Bank 70 000 Cash float 10 000 Creditors control 200 000 Loan: Leo Bank (15% p.a.) 400 000 Nominal accounts section Sales 2 500 000 Cost of sales 1 100 000 Sales returns 50 000 Salaries and wages 450 000 Bad debts 20 000 Consumable stores 10 000 Rent expense 195 000 Motor expenses 65 000 Bad debts recovered 5 000…
At the end of the current year, $59,500 of fees have been earned but have not been billed to clients. Required: A. Journalize the adjusting entry to record the accrued fees on December 31. Refer to the Chart of Accounts for exact wording of account titles. B. If the cash basis rather than the accrual basis had been used, would an adjusting entry have been necessary? CHART OF ACCOUNTSGeneral Ledger ASSETS 11 Cash 12 Accounts Receivable 13 Supplies 14 Prepaid Insurance 15 Land 16 Equipment 17 Accumulated Depreciation-Equipment LIABILITIES 21 Accounts Payable 22 Unearned Fees 23 Salaries Payable 24 Taxes Payable EQUITY 31 Common Stock 32 Retained Earnings 33 Dividends REVENUE 41 Fees Earned EXPENSES 51 Advertising Expense 52 Insurance Expense 53 Rent Expense 54 Salary Expense 55 Supplies Expense 56 Utilities Expense 57 Depreciation Expense 59 Miscellaneous Expense
The following adjusted trial balance contains the accounts and year-end balances of Cruz Company as of December 31. (1) Prepare the December 31 closing entries for Cruz Company. Assume the account number for Income Summary is 901. (2) Prepare the December 31 post-closing trial balance for Cruz Company. Note: The A. Cruz, Capital account balance was $47,600 on December 31 of the prior year.
Current Attempt in Progress The ledger of Kingbird, Inc. at the end of the current year shows Accounts Receable $112,000; Sales Revenue $833,000; and Sales Returns and Allowances $20,000. (a) (b) (c) If Kingbird, uses the direct write-off method to account for uncollectib accounts, journalize the adjusting entry at December 31, assuming Kingbird, determines that L. Dole's $1,800 balance is uncollectible. (a) (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (b) If Allowance for Doubtful Accounts has a credit balance of $2,200 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 11% of accounts receivable. No. Account Titles and Explanation If Allowance for Doubtful Accounts has a debit balance of $199 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 8% of accounts receivable. (c) Debit Credit
Use the following selected accounts and amounts with normal balances from Juan Company's adjusted trial balance to prepare its classified balance sheet at December 31. Wages payable Building Cash Interest payable L. Juan, Capital $ 1,160 Accounts receivable 116,000 Accumulated depreciation-Building 20,880 Notes payable (due in 5 years) 2,320 Notes receivable (due in 14 years) 58,000 Accounts payable JUAN COMPANY Balance Sheet December 31 $ 8,120 34,800 59,160 23,200 12,760