Financial Accounting, Student Value Edition (5th Edition)
5th Edition
ISBN: 9780134728520
Author: Robert Kemp, Jeffrey Waybright
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 3, Problem 53BP
Preparing closing entries and a post-closing
The April 30,2018, adjusted trial balance of The Grind Finale, Inc., is shown below.
| The Grind Finale, Inc. Adjusted Trial Balance April 30, 2018 |
||||
| ACCOUNT | DEBIT | CREDIT | ||
| Cash | $ 5,600 | |||
| 700 | ||||
| Prepaid Rent | 2,300 | |||
| Supplies | 450 | |||
| Equipment | 35,000 | |||
| $ 2,700 | ||||
| Accounts Payable | 900 | |||
| Unearned Service Revenue | 300 | |||
| Salaries Payable | 525 | |||
| Notes Payable | 4,000 | |||
| Common Stock | 8,500 | |||
| 19,355 | ||||
| Dividends | 4,500 | |||
| Service Revenue | 41,300 | |||
| Interest Revenue | 185 | |||
| Salaries Expense | 21,900 | |||
| Rent Expense | 5,500 | |||
| Depreciation Expense, Equipment | 1,650 | |||
| Utilities Expense | 415 | |||
| Supplies Expense | 250 | |||
| Total | $78,265 | $78,265 | ||
Requirements
- 1. Prepare the April closing entries for The Grind Finale, Inc.
- 2. Calculate the ending balance in Retained Earnings.
- 3. Prepare a post-closing trial balance.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
E-LEARNING COST ACCOUNTING ASSIGNMENT
Answer all the THREE Questions.
1 Mr Gardens, the financial controller of Sugarland Ltd, accidentally tossed the company's cost
records into a wastebasket which had been light .On realising that mistake, he rushed to the
roaring blaze and managed to retrieve only a few of the records. From the salvaged records, he
managed to determine the following facts about the current year 2020:
(i) Sales totaled sh 1,000,000 during 2020.
(ii) The beginning inventories for the year were: work in progress sh 120,000;
Finished goods sh 60,000.
(iii) There were no closing inventories of raw materials.
(iv) Direct labor is equal to 25% of conversion cost; direct, labor is also equal to 40%
of prime cost.
(v) The work in progress inventory decreased by sh 20,000 during the year.
(vi)Gross margin during the year was 55% of sales.
(vii) Manufacturing overheads amounted to sh 240,000 in the year.
(iv) Administrative expenses for 2014 were twice as great as net income…
Strictly type-written
Required:
• Ledger
• Guide Questions
Learning Objective 3: Purchase inventory, accrue interest, and pay a short-termnote) On August 1, 2019, The Shoppes at Mill Lake, Inc., purchased inventory costing $40,000by signing a 6%, six-month, short-term note payable. The company will pay the entire note(principal and interest) on the note’s maturity date.Requirements1. Journalize the company’s purchase of inventory.2. Make the adjusting entry for accrual of interest on the note payable on December 31, 2019.3. At December 31, 2019, what is reported on the balance sheet related to this note payable?4. Record the payment of the note payable (principal and interest) on its maturity date
Chapter 3 Solutions
Financial Accounting, Student Value Edition (5th Edition)
Ch. 3 - If XYZ Consulting performs a consulting service,...Ch. 3 - Prob. 2DQCh. 3 - Prob. 3DQCh. 3 - Prob. 4DQCh. 3 - Prob. 5DQCh. 3 - Prob. 6DQCh. 3 - Prob. 7DQCh. 3 - Prob. 8DQCh. 3 - What kind of account is accumulated depreciation?...Ch. 3 - Prob. 10DQ
Ch. 3 - Prob. 1SCCh. 3 - Adjusting the accounts is the process of a....Ch. 3 - Which of the following terms describes the types...Ch. 3 - Assume the weekly payroll of ASR, Inc., is 4,500....Ch. 3 - Prob. 5SCCh. 3 - Prob. 6SCCh. 3 - Prob. 7SCCh. 3 - What do closing entries accomplish? a. Bring the...Ch. 3 - Prob. 9SCCh. 3 - Which correctly represents the flow of information...Ch. 3 - Prob. 11SCCh. 3 - Prob. 12SCCh. 3 - Prob. 1SECh. 3 - Prob. 2SECh. 3 - Prob. 3SECh. 3 - Adjusting journal entryprepaid rent (Learning...Ch. 3 - Prob. 5SECh. 3 - Prob. 6SECh. 3 - Prob. 7SECh. 3 - Adjusting journal entrysalaries, accrued revenue,...Ch. 3 - Prob. 9SECh. 3 - Closing entries (Learning Objective 4) 5-10 min....Ch. 3 - Prob. 11SECh. 3 - Prob. 12SECh. 3 - Preparing a post-closing trial balance (Learning...Ch. 3 - Exercises (Group A) E3-14A. Adjusting journal...Ch. 3 - Adjusting journal entry-prepaid insurance...Ch. 3 - Common adjusting journal entries (Learning...Ch. 3 - Prob. 17AECh. 3 - Common adjusting journal entries (Learning...Ch. 3 - Prob. 19AECh. 3 - Prob. 20AECh. 3 - Prob. 21AECh. 3 - Prob. 22AECh. 3 - Preparing a financial statement (Learning...Ch. 3 - Prob. 24AECh. 3 - Prob. 25AECh. 3 - Prob. 26AECh. 3 - Prob. 27AECh. 3 - Prob. 28BECh. 3 - Prob. 29BECh. 3 - Prob. 30BECh. 3 - Analyzing errors (Learning Objective 2) 10-15 min....Ch. 3 - Common adjusting journal entries (Learning...Ch. 3 - Prob. 33BECh. 3 - Prob. 34BECh. 3 - Prob. 35BECh. 3 - Prob. 36BECh. 3 - Prob. 37BECh. 3 - Prob. 38BECh. 3 - Prob. 39BECh. 3 - Prob. 40BECh. 3 - Preparing closing entries (Learning Objective 4)...Ch. 3 - Problems (Group A) Common adjusting journal...Ch. 3 - Prob. 43APCh. 3 - Prob. 44APCh. 3 - Prob. 45APCh. 3 - Prob. 46APCh. 3 - Prob. 47APCh. 3 - Problems (Group B) Common adjusting journal...Ch. 3 - Re-creating adjusting journal entries from a trial...Ch. 3 - Preparing adjusting journal entries and an...Ch. 3 - Effects of adjusting journal entries on income...Ch. 3 - Preparing financial statements (Learning Objective...Ch. 3 - Preparing closing entries and a post-closing trial...Ch. 3 - This exercise continues the accounting process for...Ch. 3 - This problem continues the accounting process for...Ch. 3 - Prob. 1CFSAPCh. 3 - Prob. 1EIACh. 3 - Case 2. Brent Robertson and his banker were...Ch. 3 - Prob. 1FACh. 3 - Prob. 1IACh. 3 - Prob. 1SBACh. 3 - Written Communication You have received a letter...Ch. 3 - Journalizing, Posting, Adjusting, Preparing, and...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Learning Task 2: Journalizing using Periodic Inventory System Prepare necessary adjusting entries on September 2020. Masaya Merchandising sells facsimile, copers and other types of office equipment. The transaction during the month:arrow_forwardDigital Learning * CengageNOwv2 | Online teachir * Cengage Learning + Assignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false A eBook Show Me How Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $555,000; Allowance for Doubtful Accounts has a credit balance of $5,000; and sales for the year total $2,500,000. Bad debt expense is estimated at 1/4 of 1% of sales. a. Determine the amount of the adjusting entry for uncollectible accounts. b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable 24 Allowance for Doubtful Accounts Bad Debt Expense %24 c. Determine the net realizable value of accounts receivable. Feedback Check My Work a. Remember that since accounts receivable are created by credit sales, uncollectible accounts çan be estimated as a percent of credit sales. If the portion of credit sales to sales id relatively constant, the…arrow_forwardSubject: acountingarrow_forward
- Q E-F:5-22 Journalizing purchase transactions (Learning Objective 2) Howie Jewelers had the following purchase transactions. Journalize all necessary transactions. Explanations are not required. W Jun. 20 20 Jul. 4 14 & 16 18 Received a $300 allowance from Southboro Diamonds for damaged but usable goods. 24 Paid Southboro Diamonds, less allowance and discount. 4- Purchased inventory of $5,100 on account from Sanders Diamonds, a jewelry importer. Terms were 2/15, n/45, FOB shipping point. Paid freight charges, $400. Returned $600 of inventory to Sanders. 7 Paid Sanders Diamonds, less return. Purchased inventory of $3,500 on account from Southboro Diamonds, a jewelry importer. Terms were 2/10, n/EOM, FOB destination. 4+ 8 144 ( F5-56 A B insert ← prt sc backspace 9:28 PM 9/21/2022 delete homarrow_forwardlorato’s trial balance as at 31st December 2020 Dr Cr Pula Pula Sales 800,000 Sales Returns 17,000 Purchases 400,000 Purchases Returns 21,000 Land and Buildings 320,000 Machinery 275,000 Motor vehicle 130,000 Furniture 65,000 Opening inventory 50,000 Accounts receivable 220,000 Accounts payable 276,000 Capital 650,000 Cash at Bank 30,000 DIPLOMA Sessional Structured Timed Assignment January - June BPA612 Principles of Accounting ©BOU 2023 Page 5 of 11 Cash in hand 3,000 Telephone 12,000 Electricity 15,000 Salaries and wages 170,000 Discounts receivable 3,500 Discounts Allowed 2,000 Interest receivable 9,000 Interest payable 12,000 General expenses 28,000 Insurance 6,000 Bad debts 1,000 Provision for bad and doubtful debts 4,500 Carriage outwards 3,000 Carriage inwards 5,000 1,764,000.0 1,764,000 Additional information a. Closing inventory P40,000 b. Motor vehicles purchased P10, 000 was included in Purchases by mistake. c. Electricity P1, 000 was owing at the end of the financial year.…arrow_forwardand learning resource from Cengage еВook Preparing and Analyzing Closing Entries At December 31, the ledger of Aulani Company includes the following accounts, all having normal balances: Sales Revenue, $72,300; Cost of Goods Sold, $38,000; Retained Earnings, $20,000; Interest Expense, $3,200; Dividends (declared and paid), $5,000; Wages Expense, $8,000, and Interest Payable, $2,100. Required: 1. Prepare the closing entries for Aulani at December 31. If an amount box does not require an entry, leave it blank. Dec. 31 Sales Revenue v Retained Earnings v Dec. 31 Retained Earnings v Cost of Goods Sold v Interest Expense Wages Expense Retained Earnings Dec. 31 Dividends v Feedback Check My Work 1. The closing process is designed to transfer the balances in the temporary accounts (revenues, expenses, and dividends) to retained earnings and to prep the temporary accounts for the next period. Previc Check My Work Submit Assignment: Save and Exit Email Instructorarrow_forward
- gage Learning * CengageNOWv2 | Online teachin x Cengage Learning ignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false eBook Show Me How Estimating Allowance for Doubtful Accounts Evers Industries has a past history of uncollectible accounts, as follows. Age Class Percent Uncollectible Not past due 1 % 1-30 days past due 31-60 days past due 12 61-90 days past due 30 Over 90 days past due 75 Estimate the allowance for doubtful accounts, based on the aging of receivables information provided in the chart below. Evers Industries Estimate of Allowance for Doubtful Accounts Not Past Days Past Days Past Days Past Days Past Due 1-30 Due 31-60 Due 61-90 Due Over 90 Balance Due Total receivables 1,124,500 607,400 233,000 121,600 96,500 66,000 1% 3% 12% 30% 75% Percentage uncollectible Allowance for doubtful accounts Check My Work All work saved. Email Instructor Save and Exit Suarrow_forwardPears X P W Chapter: Recording Business TraNSACTIONS Sep. 1 hed:course:7710589/products/79c3fa4c-a84f-42ba-b87a-e36a400bca00/pages/urn:pe 6 7 Proble X P-F:2-30A. Journalizing transactions, posting journal entries to T- accounts, and preparing a trial balance (Learning Objectives 3, 4) 15 G New Ann Simpson started her practice as a design consultant on September 1, 2024. During the first month of operations, the business completed the following transactions: 3. Prepare the trial balance of Vince York, M.D., as of July 31, 2024. 30 Received $48,000 cash and issued common stock to Simpson. Purchased office supplies, $1,200, and furniture, $1,300, on account. Performed services for a law firm and received $1,900 cash. X Paid $18,000 cash to acquire land to be used in operations. Performed services for a hotel and received its promise to pay the $1,200 within one week. Paid for the furniture purchased on September 4 on account. Paid assistant's semimonthly salary, $1,500. Received cash on…arrow_forward(Learning Objective 5: Construct and use a trial balance) The accounts of Specialty Deck Service, Inc., follow with their normal balances at April 30, 2018. The accounts arelisted in no particular order.Account BalanceDividends..........................Utilities expense ................Accounts receivable...........Delivery expense ...............$ 3,1002,3005,300700Retained earnings.............. 7,800Salary expense................... 8,400AccountCommon stock..................Accounts payable ..............Service revenue..................Equipment.........................Note payable.....................Cash..................................Balance$ 16,2004,30020,50030,80021,00019,200Requirements1. Prepare the company’s trial balance at April 30, 2018, listing accounts in proper sequence,as illustrated in the chapter. For example, Accounts Receivable comes before Equipment.List the expense with the largest balance first, the expense with the next largest balancesecond, and so on.2.…arrow_forward
- (Learning Objective 3: Adjust the accounts) Answer the following questions aboutprepaid expenses:a. On March 1, Meadow Tree Service prepaid $7,200 for six months’ rent. Give theadjusting entry to record rent expense at March 31. Include the date of the entry and anexplanation. Then post all amounts to the two accounts involved, and show their balancesat March 31. Meadow adjusts the accounts only at March 31, the end of its fiscal year.b. On March 1, Meadow Tree Service paid $1,050 for supplies. At March 31, Meadow has$400 of supplies on hand. Make the required journal entry at March 31. Then post allamounts to the accounts and show their balances at March 31. Assume no beginningbalance in suppliesarrow_forwardHelparrow_forwardd Learn 1 Question 4 - Week 8 homework X C Raintree Cosmetic Company Sel X G EI Gato Painting Company maint X https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser30&launchUrl=https%... mework i Saved Johnson Company calculates its allowance for uncollectible accounts as 10% of its ending balance in gross accounts receivable. The allowance for uncollectible accounts had a credit balance of $12,000 at the beginning of 2021 No previously written-off accounts receivable were reinstated during 2021. At 12/31/2021, gross accounts receivable totaled $200,000, and prior to recording the adjusting entry to recognize bad debts expense for 2021, the allowance for uncollectible accounts had a debit balance of 22,000. Required: 1. What was the balance in gross accounts receivable as of 12/31/2020? 2. What journal entry should Johnson record to recognize bad debt expense for 2021? 3. Assume Johnson made no other adjustment of the allowance for uncollectible accounts during 2021.…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Financial AccountingAccountingISBN:9781305088436Author:Carl Warren, Jim Reeve, Jonathan DuchacPublisher:Cengage Learning
Financial Accounting
Accounting
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Cengage Learning
The KEY to Understanding Financial Statements; Author: Accounting Stuff;https://www.youtube.com/watch?v=_F6a0ddbjtI;License: Standard Youtube License