Chapter 1, Problem 7E

Wishbone, Inc., is preparing its year-end balance sheet and needs to determine how much of its assets/liabilities are current or noncurrent. For the following transactions, determine the amount that needs to be included in the balance sheet for the period ending December 31, Year 7, as current or noncurrent. Wishbone paid $16,000 for insurance on October 1, Year 6. Insurance is $500 per month due on the last day of the month. Wishbone pays its employees the Wednesday following the close of the 2-week pay period. Wishbone has 15 employees who each work 40 hours per week for $10 per hour. In Year 7, December 31 is the second Friday of a 2-week pay period. Wishbone has a $10,000 deferred tax asset recorded on its books as of December 31, Year 7. Wishbone expects $3,000 to be reversed in Year 8. During Year 7, Wishbone invested $6,000 in trading securities. It expects to sell half in Year 8 and the remaining half in Year 9. Wishbone purchased new equipment for $15,000 on January 1, Year…

The trial balance for K and J Nursery, Inc., listed the following account balances at December 31, 2021, the end of its fiscal year: cash, $16,000; accounts receivable, $11,000; inventory, $25,000; equipment (net), $80,000; accounts payable, $14,000; salaries payable, $9,000; interest payable, $1,000; notes payable (due in 18 months), $30,000; common stock, $50,000. Calculate total current assets and total current liabilities that would appear in the company’s year-end balance sheet.

On December 1, 2020, Bonita Company had the following account balances.     Debit       Credit Cash   $17,300   Accumulated Depreciation—Equipment   $3,000 Notes Receivable   2,500   Accounts Payable   6,200 Accounts Receivable   7,700   Owner’s Capital   64,700 Inventory   15,900       $73,900 Prepaid Insurance   1,500         Equipment   29,000             $73,900         During December, the company completed the following transactions. Dec. 7   Received $3,600 cash from customers in payment of account (no discount allowed). 12   Purchased merchandise on account from Vance Co. $11,000, terms 1/10, n/30. 17   Sold merchandise on account $16,300, terms 2/10, n/30. The cost of the merchandise sold was $9,200. 19   Paid salaries $2,200. 22   Paid Vance Co. in full, less discount. 26   Received collections in full, less discounts, from customers billed on December 17. 31   Received $2,800 cash from customers in payment of account (no discount…

The accountant for Pili’s Gadgets Shop prepared the following list of account balances from the entity’s records for the year ended June 30, 2020: Sales Revenue $168,000   Cash $30,000 Accounts Receivable $14,500   Cost of Goods Sold $45,000 Equipment $48,000   Pili, Capital $27,000 Accounts Payable $17,000   Notes Payable $15,000 General & Admin Expense $50,000   Inventory $1,500 Selling Expense   $6,000   Accumulated Depreciation $12,000 Income Taxes Payable   $5,000   Income Taxes Expense $18,000 Interest Expense $3,000   Land $28,000   Additional Information: Last year’s ending inventory and accounts receivable balances were $3,500 and $10,000 respectively. Sales are on credit and the credit term is 21 days. Ms. Pili, the owner, praised the shop manager for successfully increased the sales level in the current year. Calculated ratios and the industry averages ratios in the related period are…

The trial balance for K and J Nursery, Inc., listed the following account balances at December 31, 2021, the end of its fiscal year: cash, $16,000; accounts receivable, $11,000; inventory, $25,000; equipment (net), $80,000; accounts payable, $14,000; salaries payable, $9,000; interest payable, $1,000; notes payable (due in 18 months), $30,000; common stock, $50,000.Prepare a classified balance sheet for K and J Nursery, Inc. The equipment originally cost $140,000. (Amounts to be deducted should be indicated by a minus sign.)

The following summarized transactions occurred in December 2020 in Syco Co.  Dec 1  Purchased plant and equipment for $515 in cash. 2  Borrowed $758 from a bank, signing a note payable. 5  Provided $37,522 in service to customers, with $27,250 on account and  the rest received in cash. 9  Paid $4,300 cash on accounts payable. 14  Purchased $30,449 inventory on account. 18  Paid salaries, $3,500. 22  Received $37,410 on account paid by customers. 26  Purchased and used fuel of $750 in delivery vehicles during the year  (paid for in cash). 31  Incurred $68 in utility usage during the year; paid $55 in cash and owed  the rest on account. Required:   Prepare journal entries for those transactions.

On January 1, 2019, Sharon Matthews established Tri-City Realty, which completed the following transactions during the month: Sharon Matthews transferred cash from a personal bank account to an account to be used for the business, $20,000. Paid rent on office and equipment for the month, $3,700. Purchased supplies on account, $1,090. Paid creditor on account, $400. Earned fees, receiving cash, $16,800. Paid automobile expenses (including rental charge) for month, $1,020, and miscellaneous expenses, $690. Paid office salaries, $2,150. Determined that the cost of supplies used was $600. Withdrew cash for personal use, $990. 2.  Prepare T accounts, using the account titles in (1). Post the journal entries to these T accounts, selecting the appropriate letter to the left of each amount to identify the transactions. Determine the account balances (when required), after all posting is complete, for all accounts having two or more debits or credits. 3.  Prepare an unadjusted trial balance…

The following transactions occurred during December 31, 2021, for the Falwell Company.  A three-year fire insurance policy was purchased on July 1, 2021, for $12,240. The company debited insurance expense for the entire amount. Depreciation on equipment totaled $12,250 for the year. Employee salaries of $16,500 for the month of December will be paid in early January 2022. On November 1, 2021, the company borrowed $190,000 from a bank. The note requires principal and interest at 12% to be paid on April 30, 2022. On December 1, 2021, the company received $6,000 in cash from another company that is renting office space in Falwell’s building. The payment, representing rent for December, January, and February was credited to deferred rent revenue. On December 1, 2021, the company received $6,000 in cash from another company that is renting office space in Falwell’s building. The payment, representing rent for December, January, and February was credited to rent revenue rather than deferred…

On December 1, 2022, Sheridan Distributing Company had the following account balances.     Debit       Credit Cash   $7,500   Accumulated Depreciation—Equipment   $2,640 Accounts Receivable   4,900   Accounts Payable   4,500 Inventory   12,200   Salaries and Wages Payable   1,000 Supplies   1,300   Owner’s Capital   44,160 Equipment   26,400             $52,300       $52,300 During December, the company completed the following summary transactions. Dec. 6   Paid $1,800 for salaries and wages due employees, of which $800 is for December and $1,000 is for November salaries and wages payable. 8   Received $1,900 cash from customers in payment of account (no discount allowed). 10   Sold merchandise for cash $6,500. The cost of the merchandise sold was $3,900. 13   Purchased merchandise on account from Boehm Co. $9,000, terms 2/10, n/30. 15   Purchased supplies for cash $1,600. 18   Sold merchandise on account $12,800, terms 3/10,…