ACCT.PRINCIPLES-WILEYPLUS NEXTGEN
14th Edition
ISBN: 9781119709954
Author: Weygandt
Publisher: WILEY
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Safety First Company completed all of its October 31,2020 adjustments in preparation for preparing its financial statements which resulted in the following trial balance
Other information:
All accounts have normal balances
$26,400 of the Notes payable balance is due by October 31, 2021
The final task in the year end process was to access the assets for impairment, which resulted in the following schedule
Required:
Prepare the entries to record any impairment losses at October 31, 2020. Assume the company recorded no impairment losses in the previous years
Prepare a classified balance sheet at October 31, 2020
What is the impact on the financial statements of an impairment loss?
You have been provided with the end of year, unadjusted trial balance for City Movers LTD and a list of balance day adjustments to be entered into the General Journal.
CITY MOVERS
UNADJUSTED TRIAL BALANCE AS AT 31st August 2021
Cash at bank
60080
Accounts Receivable
68250
Allowance for Doubtful Debts
1500
Prepaid Insurance
3600
Moving Van
45000
Acc. Depreciation- Van
9000
Capital – Gui Nash
102000
Drawings – Gui Nash
16,500
Fees Revenue
90930
Moving staff wages
10000
Total
203430
203430
Additional Information
The annual Insurance policy was paid on 1st June 2021.
An Accounts Receivable of $750 is uncollectable and is to be written off. The policy is to have the Allowance for Doubtful Debts equal to 2% of accounts receivable
Moving van is depreciated at 10% per annum straight line method.
Wages amounting to $ 950 had been incurred but not been paid as at 31st August 2021.
Required:…
REQUIRED
Record the adjustment journal entry in respect of rent income in the books of NT Stores as at 28
February 2022.
INFORMATION
The Rent Income account of NT Stores reflected a total of R276 000 on 28 February 2022, the end of
the accounting period. This was in respect of rent for an office occupied by a tenant for the entire
financial year. The monthly rental was increased by 10% with effect from 01 September 2021. The rent
for February 2022 was due to be received on 01 March 2022.
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