2. The following trial balance and additional data are related to Wen Teng Distributing Company. Wen Teng Company Trial Balance as at December 31, 1993 Cash Accounts Receivable Inventory Supplies Prepaid Rent Furniture and fixtures Accumulated Depreciation Accounts Payable Dr $ 5,670 37 100 60,500 Cr $ 3,930 6,000 26,500 21,200 46,340 Salary Payable Interest Payable Unearned Sales Revenue 3,500 Note Payable, Long Term 35,000 Wen Teng. Capital 23,680 Wen Teng, Withdrawals 48,000 Sales Revenue 346,700 Sales Discounts 10,300 Sales Returns and Allowances 8.200 Cost of Goods Sold 171,770 Salary Expense 82.750 Rent Expense 7,000 Depreciation expense Utilities Expense 5,800 Supplies Expense Interest Expense Total 2,900 476,420 476.420 Additional Data at December 31, 1993: a) Supplies used during the year $2 580. b) Prepaid rent in force, $1 000 c) Unearned sales revenue still not earned, $2 400. The company expects to earn this amount during the next few months. d) Depreciation. The furniture and fixtures' estimated useful life is 10 years, and they are expected to be worthless when they are retired from service. e) Accrued salaries, $1 300. f) Accrued interest expense, $600. g) Inventory on hand, $65 800. Required: i) Adjusting journal entries ii) Accounting worksheet. iii) A multi-step income statement, statement of owner's equity and a balance sheet. iv) Prepare the necessary closing entries.
2. The following trial balance and additional data are related to Wen Teng Distributing Company. Wen Teng Company Trial Balance as at December 31, 1993 Cash Accounts Receivable Inventory Supplies Prepaid Rent Furniture and fixtures Accumulated Depreciation Accounts Payable Dr $ 5,670 37 100 60,500 Cr $ 3,930 6,000 26,500 21,200 46,340 Salary Payable Interest Payable Unearned Sales Revenue 3,500 Note Payable, Long Term 35,000 Wen Teng. Capital 23,680 Wen Teng, Withdrawals 48,000 Sales Revenue 346,700 Sales Discounts 10,300 Sales Returns and Allowances 8.200 Cost of Goods Sold 171,770 Salary Expense 82.750 Rent Expense 7,000 Depreciation expense Utilities Expense 5,800 Supplies Expense Interest Expense Total 2,900 476,420 476.420 Additional Data at December 31, 1993: a) Supplies used during the year $2 580. b) Prepaid rent in force, $1 000 c) Unearned sales revenue still not earned, $2 400. The company expects to earn this amount during the next few months. d) Depreciation. The furniture and fixtures' estimated useful life is 10 years, and they are expected to be worthless when they are retired from service. e) Accrued salaries, $1 300. f) Accrued interest expense, $600. g) Inventory on hand, $65 800. Required: i) Adjusting journal entries ii) Accounting worksheet. iii) A multi-step income statement, statement of owner's equity and a balance sheet. iv) Prepare the necessary closing entries.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 17RE: Using the information provided in RE17-16, prepare the journal entries to record Year 1s (a)...
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Transcribed Image Text:2. The following trial balance and additional data are related to Wen Teng Distributing Company.
Wen Teng Company
Trial Balance as at December 31, 1993
Cash
Accounts Receivable
Inventory
Supplies
Prepaid Rent
Furniture and fixtures
Accumulated Depreciation
Accounts Payable
Dr
$
5,670
37 100
60,500
Cr
$
3,930
6,000
26,500
21,200
46,340
Salary Payable
Interest Payable
Unearned Sales Revenue
3,500
Note Payable, Long Term
35,000
Wen Teng. Capital
23,680
Wen Teng, Withdrawals
48,000
Sales Revenue
346,700
Sales Discounts
10,300
Sales Returns and Allowances
8.200
Cost of Goods Sold
171,770
Salary Expense
82.750
Rent Expense
7,000
Depreciation expense
Utilities Expense
5,800
Supplies Expense
Interest Expense
Total
2,900
476,420
476.420
Transcribed Image Text:Additional Data at December 31, 1993:
a) Supplies used during the year $2 580.
b) Prepaid rent in force, $1 000
c) Unearned sales revenue still not earned, $2 400. The company expects to earn this amount during the
next few months.
d) Depreciation. The furniture and fixtures' estimated useful life is 10 years, and they are expected to
be worthless when they are retired from service.
e) Accrued salaries, $1 300.
f) Accrued interest expense, $600.
g) Inventory on hand, $65 800.
Required:
i) Adjusting journal entries
ii) Accounting worksheet.
iii) A multi-step income statement, statement of owner's equity and a balance sheet.
iv) Prepare the necessary closing entries.
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