COLLEGE ACCOUNTING (LL)W/ACCESS>CUSTOM<
4th Edition
ISBN: 9781260255157
Author: Haddock
Publisher: MCG CUSTOM
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Textbook Question
Chapter 12, Problem 5PA
Healthy Eating Foods Company is a distributor of nutritious snack foods such as granola bars. On December 31, 2019, the firm’s general ledger contained the accounts and balances that follow.
INSTRUCTIONS
- 1. Prepare the
Trial Balance section of a 10-column worksheet. The worksheet covers the year ended December 31, 2019. - 2. Enter the adjustments in the Adjustments section of the worksheet. Identify each adjustment with the appropriate letter.
- 3. Complete the worksheet.
Note: This problem will be required to complete Problem 13.4A in Chapter 13.
ACCOUNTS AND BALANCES
ADJUSTMENTS
a.–b. Merchandise inventory on December 31, 2019, is $78,000.
c. During 2019, the firm had net credit sales of $560,000; past experience indicates that 0.5 percent of these sales should result in uncollectible accounts.
d. On December 31, 2019, an inventory of supplies showed that items costing $1,180 were on hand.
e. On May 1, 2019, the firm purchased a one-year insurance policy for $5,400.
f. On January 2, 2017, the firm purchased office equipment for $8,300. At that time, the equipment was estimated to have a useful life of six years and a salvage value of $350.
g. On January 2, 2017, the firm purchased warehouse equipment for $28,000. At that time, the equipment was estimated to have a useful life of five years and a salvage value of $4,000.
h. On November 1, 2019, the firm issued a four-month, 12 percent note for $32,000.
i. On December 31, 2019, the firm owed salaries of $5,000 that will not be paid until 2020.
j. On December 31, 2019, the firm owed the employer’s social security tax (assume 6.2 percent) and Medicare tax (assume 1.45 percent) on the entire $5,000 of accrued wages.
k. On December 31, 2019, the firm owed the federal
Analyze: When the financial statements for Healthy Eating Foods Company are prepared, what net income will be reported for the period ended December 31, 2019?
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Chapter 12 Solutions
COLLEGE ACCOUNTING (LL)W/ACCESS>CUSTOM<
Ch. 12 - Why is a 10-column worksheet used as part of the...Ch. 12 - Prob. 1.2SRQCh. 12 - Prob. 1.3SRQCh. 12 - Prob. 1.4SRECh. 12 - Prob. 1.5SRECh. 12 - Your company prepares financial statements each...Ch. 12 - Prob. 2.1SRQCh. 12 - Prob. 2.2SRQCh. 12 - The trial balance in the first two columns of the...Ch. 12 - Prob. 2.4SRE
Ch. 12 - Prob. 2.5SRECh. 12 - Explain why an error in the amount of an adjusting...Ch. 12 - Why is the accrual basis of accounting favored?Ch. 12 - Prob. 2CSRCh. 12 - How, if at all, does accrued income differ from...Ch. 12 - Prob. 4CSRCh. 12 - Prob. 5CSRCh. 12 - On July 1, 2019, a landlord received 36,000 cash...Ch. 12 - Prob. 1DQCh. 12 - Prob. 2DQCh. 12 - Income Summary amounts are extended to which...Ch. 12 - Prob. 4DQCh. 12 - What types of assets are subject to depreciation?...Ch. 12 - Prob. 6DQCh. 12 - What adjustment is made for depreciation on office...Ch. 12 - What is an accrued expense? Give three examples of...Ch. 12 - Prob. 9DQCh. 12 - What is a prepaid expense? Give three examples of...Ch. 12 - Prob. 11DQCh. 12 - What adjustment is made to record expired...Ch. 12 - What is the alternative method of handling prepaid...Ch. 12 - What is accrued income? Give an example of an item...Ch. 12 - Prob. 15DQCh. 12 - Prob. 16DQCh. 12 - Prob. 17DQCh. 12 - Prob. 18DQCh. 12 - Prob. 19DQCh. 12 - Prob. 20DQCh. 12 - How does the worksheet help the accountant to...Ch. 12 - The beginning inventory of Norcal Wholesalers was...Ch. 12 - Prob. 2ECh. 12 - Prob. 3ECh. 12 - Prob. 4ECh. 12 - Prob. 5ECh. 12 - Prob. 6ECh. 12 - For each of the following independent situations,...Ch. 12 - Prob. 1PACh. 12 - Prob. 2PACh. 12 - Prob. 3PACh. 12 - The Green Thumb Gardener is a retail store that...Ch. 12 - Healthy Eating Foods Company is a distributor of...Ch. 12 - The Artisan Wines is a retail store selling...Ch. 12 - Prob. 1PBCh. 12 - On June 1, 2019, Raquel Ramirez established her...Ch. 12 - Prob. 3PBCh. 12 - Fun Depot is a retail store that sells toys,...Ch. 12 - Whatnots is a retail seller of cards, novelty...Ch. 12 - The Game Place is a retail store that sells...Ch. 12 - The unadjusted trial balance of Bens Jewelers on...Ch. 12 - Prob. 2CTPCh. 12 - The president of Murray Stainless Steel...Ch. 12 - Prob. 1FSA
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