COLLEGE ACCOUNTING (LL)W/ACCESS>CUSTOM<
4th Edition
ISBN: 9781260255157
Author: Haddock
Publisher: MCG CUSTOM
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Textbook Question
Chapter 12, Problem 5PB
Whatnots is a retail seller of cards, novelty items, and business products. On December 31, 2019, the firm’s general ledger contained the following accounts and balances.
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 13.4B in Chapter 13.
ACCOUNTS AND BALANCES
ADJUSTMENTS
a.–b. Merchandise inventory on hand on December 31, 2019, is $15,840.
c. During 2019, the firm had net credit sales of $160,000. Past experience indicates that 0.8 percent of these sales should result in uncollectible accounts.
d. On December 31, 2019, an inventory of supplies showed that items costing $245 were on hand.
e. On July 1, 2019, the firm purchased a one-year insurance policy for $2,400.
f. On January 2, 2017, the firm purchased store equipment for $6,000. The equipment was estimated to have a five-year useful life and a salvage value of $1,000.
g. On January 4, 2017, the firm purchased store fixtures for $15,760. At the time of the purchase, the fixtures were assumed to have a useful life of seven years and a salvage value of $1,410.
h. On October 1, 2019, the firm issued a six-month, $4,000 note payable at 9 percent interest with a local bank.
i. At year-end (December 31, 2019), the firm owed salaries of $1,450 that will not be paid until January 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 $1,450 of accrued wages.
k. On December 31, 2019, the firm owed federal
Analyze: After all adjustments have been recorded, what is the net book value of the company’s assets?
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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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