Homework Help is Here – Start Your Trial Now!
Business
Accounting
Shamrock Corporation Balance Sheet December 31, 2024 Cash $75,000 Accounts payable $34,375 Inventory 76,875 Interest payable 6,250 Prepaid insurance 14,000 Bonds payable 125,000 Equipment 95,000 Common stock 62,500 Retained earnings $32,750 $260,875 $260,875 During 2025, the following transactions occurred. Shamrock uses a perpetual inventory system. 1. Shamrock paid $6,250 interest on the bonds on January 1, 2025. 2. Shamrock purchased $602,750 of inventory on account. 3. Shamrock sold for $1,200,000 cash inventory which cost $660,000. Shamrock also collected $72,000 sales taxes. 4. Shamrock paid $575,000 on accounts payable. 5. Shamrock paid $6,250 interest on the bonds on July 1, 2025. 6. The prepaid insurance ($14,000) expired on July 31 7. On August 1, Shamrock paid $24.480 for insurance coverage from August 1, 2025, through July 31, 2026. 8. Shamrock paid $42,500 sales taxes to the state. 9. Paid other operating expenses, $227.500. 10. 11 Redeemed the bonds on December 31, 2025, by paying $120,000 plus $6,250 interest. Issued $225,000 of 8%, 10-year bonds on December 31, 2025, at 103. The bonds pay interest every June 30 and December 31. Adjustment data: 2 3. Recorded the insurance expired from item 7. The equipment was acquired on December 31, 2024, and will be depreciated on a straight-line basis over 5 years with a $7,600 salvage value. The income tax rate is 30%. (Hint Prepare the income statement up to income before taxes and multiply by 30% to compute the amount.) Prepare journal entries for the transactions listed above and adjusting entries. (List all debit entries before credit entries. 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 0 for the amounts.)

Shamrock Corporation Balance Sheet December 31, 2024 Cash $75,000 Accounts payable $34,375 Inventory 76,875 Interest payable 6,250 Prepaid insurance 14,000 Bonds payable 125,000 Equipment 95,000 Common stock 62,500 Retained earnings $32,750 $260,875 $260,875 During 2025, the following transactions occurred. Shamrock uses a perpetual inventory system. 1. Shamrock paid $6,250 interest on the bonds on January 1, 2025. 2. Shamrock purchased $602,750 of inventory on account. 3. Shamrock sold for $1,200,000 cash inventory which cost $660,000. Shamrock also collected $72,000 sales taxes. 4. Shamrock paid $575,000 on accounts payable. 5. Shamrock paid $6,250 interest on the bonds on July 1, 2025. 6. The prepaid insurance ($14,000) expired on July 31 7. On August 1, Shamrock paid $24.480 for insurance coverage from August 1, 2025, through July 31, 2026. 8. Shamrock paid $42,500 sales taxes to the state. 9. Paid other operating expenses, $227.500. 10. 11 Redeemed the bonds on December 31, 2025, by paying $120,000 plus $6,250 interest. Issued $225,000 of 8%, 10-year bonds on December 31, 2025, at 103. The bonds pay interest every June 30 and December 31. Adjustment data: 2 3. Recorded the insurance expired from item 7. The equipment was acquired on December 31, 2024, and will be depreciated on a straight-line basis over 5 years with a $7,600 salvage value. The income tax rate is 30%. (Hint Prepare the income statement up to income before taxes and multiply by 30% to compute the amount.) Prepare journal entries for the transactions listed above and adjusting entries. (List all debit entries before credit entries. 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 0 for the amounts.)

Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter8: Liabilities And Stockholders' Equity
Section: Chapter Questions
Problem 8.1.2MBA
See similar textbooks
icon
Related questions
Question

Give me correct answer with explanation.vi

Shamrock Corporation Balance Sheet December 31, 2024 Cash $75,000 Accounts payable $34,375 Inventory 76,875 Interest payable 6,250 Prepaid insurance 14,000 Bonds payable 125,000 Equipment 95,000 Common stock 62,500 Retained earnings $32,750 $260,875 $260,875 During 2025, the following transactions occurred. Shamrock uses a perpetual inventory system. 1. Shamrock paid $6,250 interest on the bonds on January 1, 2025. 2. Shamrock purchased $602,750 of inventory on account. 3. Shamrock sold for $1,200,000 cash inventory which cost $660,000. Shamrock also collected $72,000 sales taxes. 4. Shamrock paid $575,000 on accounts payable. 5. Shamrock paid $6,250 interest on the bonds on July 1, 2025. 6. The prepaid insurance ($14,000) expired on July 31 7. On August 1, Shamrock paid $24.480 for insurance coverage from August 1, 2025, through July 31, 2026. 8. Shamrock paid $42,500 sales taxes to the state. 9. Paid other operating expenses, $227.500. 10. 11 Redeemed the bonds on December 31, 2025, by paying $120,000 plus $6,250 interest. Issued $225,000 of 8%, 10-year bonds on December 31, 2025, at 103. The bonds pay interest every June 30 and December 31. Adjustment data: 2 3. Recorded the insurance expired from item 7. The equipment was acquired on December 31, 2024, and will be depreciated on a straight-line basis over 5 years with a $7,600 salvage value. The income tax rate is 30%. (Hint Prepare the income statement up to income before taxes and multiply by 30% to compute the amount.) Prepare journal entries for the transactions listed above and adjusting entries. (List all debit entries before credit entries. 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 0 for the amounts.)
Transcribed Image Text:Shamrock Corporation Balance Sheet December 31, 2024 Cash $75,000 Accounts payable $34,375 Inventory 76,875 Interest payable 6,250 Prepaid insurance 14,000 Bonds payable 125,000 Equipment 95,000 Common stock 62,500 Retained earnings $32,750 $260,875 $260,875 During 2025, the following transactions occurred. Shamrock uses a perpetual inventory system. 1. Shamrock paid $6,250 interest on the bonds on January 1, 2025. 2. Shamrock purchased $602,750 of inventory on account. 3. Shamrock sold for $1,200,000 cash inventory which cost $660,000. Shamrock also collected $72,000 sales taxes. 4. Shamrock paid $575,000 on accounts payable. 5. Shamrock paid $6,250 interest on the bonds on July 1, 2025. 6. The prepaid insurance ($14,000) expired on July 31 7. On August 1, Shamrock paid $24.480 for insurance coverage from August 1, 2025, through July 31, 2026. 8. Shamrock paid $42,500 sales taxes to the state. 9. Paid other operating expenses, $227.500. 10. 11 Redeemed the bonds on December 31, 2025, by paying $120,000 plus $6,250 interest. Issued $225,000 of 8%, 10-year bonds on December 31, 2025, at 103. The bonds pay interest every June 30 and December 31. Adjustment data: 2 3. Recorded the insurance expired from item 7. The equipment was acquired on December 31, 2024, and will be depreciated on a straight-line basis over 5 years with a $7,600 salvage value. The income tax rate is 30%. (Hint Prepare the income statement up to income before taxes and multiply by 30% to compute the amount.) Prepare journal entries for the transactions listed above and adjusting entries. (List all debit entries before credit entries. 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 0 for the amounts.)
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Financial Reporting, Financial Statement Analysis…
Financial Reporting, Financial Statement Analysis…
Finance
ISBN:
9781285190907
Author:
James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS