Prepare journal entries for the transactions listed above and adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) Marigold Corp.'s unadjusted trial balance at December 1, 2017, is presented below. Date Account Titles and Explanation Debit Credit Debit Credit Dec. 2 Cash $27,500 Accounts Receivable 37,000 Dec. 15 v Notes Receivable 9,700 Interest Receivable (To record depreciation expense on equipment.) Inventory 36,300 Prepaid Insurance 3,900 Land 20,600 Buildings 162,900 (To record sale of equipment.) Dec. 23 Equipment 62,000 Patent 9,360 (To record sales revenue.) $500 Allowance for Doubtful Accounts 54,300 Accumulated Depreciation-Buildings (To record cost of goods sold.) 24,800 Accumulated Depreciation-Equipment Dec. 31 Accounts Payable 28,400 Salaries and Wages Payable Dec. 31 1. Notes Payable (due April 30, 2018) 12,200 Income Taxes Payable 2. Interest Payable 3. Notes Payable (due in 2023) 35,300 Common Stock 59,600 4. Retained Earnings 64,660 Dividends 13,500 5. Sales Revenue 905,000 0. 6. Interest Revenue Gain on Disposal of Plant Assets 7. Bad Debt Expense Cost of Goods Sold 636,000 8. Depreciation Expense Income Tax Expense 9. Insurance Expense 10. Interest Expense Other Operating Expenses 61,000 Amortization Expense eTextbook and Media Salaries and Wages Expense 105,000 Total $1,184,760 $1,184,760 The following transactions occurred during December. Dec. Purchased equipment for $16,200, plus sales taxes of $600 (paid in cash). 2 Marigold sold for $3,550 equipment which originally cost $4,800. Accumulated depreciation on this equipment at January 1, 2017, was $1,850; 2017 depreciation prior to the sale of equipment was $480. 15 Marigold sold for $5,150 on account inventory that cost $3,460. 23 Salaries and wages of $6,630 were paid. Adjustment data: 1. Marigold estimates that uncollectible accounts receivable at year-end are $3,950. 2. The ntereceivable is a one-year, 8% note dated April 1, 2017. No intercst has been recorded. 3. The balance in prepaid insurance represents payment of a $3,900, 6-month premium on September 1, 2017. 4. The building is being depreciated using the straight-line method over 30 years. The salvage value is $30,600. 5. The equipment owned prior to this year is being depreciated using the straight-line method over 5 years. The salvage value is 10% of cost. 6. The equipment purchased on December 2, 2017, is being depreciated using the straight-line method over 5 years, with a salvage value of $1,920. 7. The patent was acquired on January 1, 2017, and has a useful life of 9 years from that date. 8. Unpaid salaries at December 31, 2017, total $2,140. 9. Both the short-term and long term notes payable are dated January 1, 2017, and carry a 10% interest rate. All interest is payable in the next 12 months. 10 Income tax expense was $12,200. It was unpaid at December 31.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
Prepare journal entries for the transactions listed above and adjusting entries. (Credit account titles are automatically indented
when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the
amounts. Record journal entries in the order presented in the problem.)
Marigold Corp.'s unadjusted trial balance at December 1, 2017, is presented below.
Date
Account Titles and Explanation
Debit
Credit
Debit
Credit
Dec. 2
Cash
$27,500
Accounts Receivable
37,000
Dec. 15 v
Notes Receivable
9,700
Interest Receivable
(To record depreciation expense on equipment.)
Inventory
36,300
Prepaid Insurance
3,900
Land
20,600
Buildings
162,900
(To record sale of equipment.)
Dec. 23
Equipment
62,000
Patent
9,360
(To record sales revenue.)
$500
Allowance for Doubtful Accounts
54,300
Accumulated Depreciation-Buildings
(To record cost of goods sold.)
24,800
Accumulated Depreciation-Equipment
Dec. 31
Accounts Payable
28,400
Salaries and Wages Payable
Dec. 31
1.
Notes Payable (due April 30, 2018)
12,200
Income Taxes Payable
2.
Interest Payable
3.
Notes Payable (due in 2023)
35,300
Common Stock
59,600
4.
Retained Earnings
64,660
Dividends
13,500
5.
Sales Revenue
905,000
0.
6.
Interest Revenue
Gain on Disposal of Plant Assets
7.
Bad Debt Expense
Cost of Goods Sold
636,000
8.
Depreciation Expense
Income Tax Expense
9.
Insurance Expense
10.
Interest Expense
Other Operating Expenses
61,000
Amortization Expense
eTextbook and Media
Salaries and Wages Expense
105,000
Total
$1,184,760
$1,184,760
The following transactions occurred during December.
Dec.
Purchased equipment for $16,200, plus sales taxes of $600 (paid in cash).
2
Marigold sold for $3,550 equipment which originally cost $4,800. Accumulated depreciation on this equipment at
January 1, 2017, was $1,850; 2017 depreciation prior to the sale of equipment was $480.
15
Marigold sold for $5,150 on account inventory that cost $3,460.
23
Salaries and wages of $6,630 were paid.
Adjustment data:
1.
Marigold estimates that uncollectible accounts receivable at year-end are $3,950.
2.
The ntereceivable is a one-year, 8% note dated April 1, 2017. No intercst has been recorded.
3.
The balance in prepaid insurance represents payment of a $3,900, 6-month premium on September 1, 2017.
4.
The building is being depreciated using the straight-line method over 30 years. The salvage value is $30,600.
5.
The equipment owned prior to this year is being depreciated using the straight-line method over 5 years. The salvage
value is 10% of cost.
6.
The equipment purchased on December 2, 2017, is being depreciated using the straight-line method over 5 years, with a
salvage value of $1,920.
7.
The patent was acquired on January 1, 2017, and has a useful life of 9 years from that date.
8.
Unpaid salaries at December 31, 2017, total $2,140.
9.
Both the short-term and long term notes payable are dated January 1, 2017, and carry a 10% interest rate. All interest is
payable in the next 12 months.
10
Income tax expense was $12,200. It was unpaid at December 31.
Transcribed Image Text:Prepare journal entries for the transactions listed above and adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) Marigold Corp.'s unadjusted trial balance at December 1, 2017, is presented below. Date Account Titles and Explanation Debit Credit Debit Credit Dec. 2 Cash $27,500 Accounts Receivable 37,000 Dec. 15 v Notes Receivable 9,700 Interest Receivable (To record depreciation expense on equipment.) Inventory 36,300 Prepaid Insurance 3,900 Land 20,600 Buildings 162,900 (To record sale of equipment.) Dec. 23 Equipment 62,000 Patent 9,360 (To record sales revenue.) $500 Allowance for Doubtful Accounts 54,300 Accumulated Depreciation-Buildings (To record cost of goods sold.) 24,800 Accumulated Depreciation-Equipment Dec. 31 Accounts Payable 28,400 Salaries and Wages Payable Dec. 31 1. Notes Payable (due April 30, 2018) 12,200 Income Taxes Payable 2. Interest Payable 3. Notes Payable (due in 2023) 35,300 Common Stock 59,600 4. Retained Earnings 64,660 Dividends 13,500 5. Sales Revenue 905,000 0. 6. Interest Revenue Gain on Disposal of Plant Assets 7. Bad Debt Expense Cost of Goods Sold 636,000 8. Depreciation Expense Income Tax Expense 9. Insurance Expense 10. Interest Expense Other Operating Expenses 61,000 Amortization Expense eTextbook and Media Salaries and Wages Expense 105,000 Total $1,184,760 $1,184,760 The following transactions occurred during December. Dec. Purchased equipment for $16,200, plus sales taxes of $600 (paid in cash). 2 Marigold sold for $3,550 equipment which originally cost $4,800. Accumulated depreciation on this equipment at January 1, 2017, was $1,850; 2017 depreciation prior to the sale of equipment was $480. 15 Marigold sold for $5,150 on account inventory that cost $3,460. 23 Salaries and wages of $6,630 were paid. Adjustment data: 1. Marigold estimates that uncollectible accounts receivable at year-end are $3,950. 2. The ntereceivable is a one-year, 8% note dated April 1, 2017. No intercst has been recorded. 3. The balance in prepaid insurance represents payment of a $3,900, 6-month premium on September 1, 2017. 4. The building is being depreciated using the straight-line method over 30 years. The salvage value is $30,600. 5. The equipment owned prior to this year is being depreciated using the straight-line method over 5 years. The salvage value is 10% of cost. 6. The equipment purchased on December 2, 2017, is being depreciated using the straight-line method over 5 years, with a salvage value of $1,920. 7. The patent was acquired on January 1, 2017, and has a useful life of 9 years from that date. 8. Unpaid salaries at December 31, 2017, total $2,140. 9. Both the short-term and long term notes payable are dated January 1, 2017, and carry a 10% interest rate. All interest is payable in the next 12 months. 10 Income tax expense was $12,200. It was unpaid at December 31.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 6 images

Blurred answer
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education