Adjusting entry: When stationery supplies for Design Thinking Ltd arepurchased, they are recorded as an asset. An end of period stock-take(count) revealed a closing balance of $10,000. There was an openingbalance of $15,000 and during the period a total of $35,000 of supplieswere purchased.Instructions: Record the adjusting entry for the year ending 31 August2021 by selecting the correct amounts that are debited and credited.General JournalAugust[ Select ][ Select ]31.[ Select ]><>

Supplies used = Opening supplies + supplies purchased - ending supplies = 15000+35000-10000 =…

Answered: Adjusting entry: When stationery…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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7
PROBLEM 1: The transactions of Dragon Company for December 2020 are shown below. Requirements: (a) Journalize each transaction and prepare the necessary adjusting entries; and (b) Prepare the current liabilities section of the balance sheet for the month ended December 31, 2020. Dec 1 Purchased P1,250,000 inventory on account. Received P200,000 from a lessee as an advance payment for rent over five months starting December 2020. Billed a customer who bought 400 units at P4,500 each. It is expected that 6% of the units will be defective and that repair costs will average P1,350 per unit Dec 3 Dec 9 Dec 15 Borrowed P900,000 from a bank by signing a 9-month, 10%, interest-bearing note. Dec 21 Paid P820,000 on account for inventory purchased on December 1. Dec 27 Sued by a disgruntied employee. Legal counsel believes that it is possible that the company will have to pay P80,000 in damages next year. Dec 30 Purchased new equipment for P650,000, paying P200,000 cash and signing a 3-year, 7%…
Create and Adjusting Journal Entry
View Policies Current Attempt in Progress On July 1, 2022, Blossom Co. pays $12.000 to Nash's Insurance Co. for a 4-year insurance contract. Both companies have fiscal years ending December 31. For Blossom Co. journalize and post the entry on July 1 and the annual adjusting entry on December 31. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem) Debit Credit Date Account Titles and Explanation 100
journal entries needed for march 31, sept 30, and dec 31
Prepare an adjusted trial balance and income statement. Cash 26400 Accounts Payable 12100 Inventory 27060 Interest Payable 220 Prepaid Insurance 6280 Notes Payable 44000 Equipment 33440 Owner's Capital 36860 93180 93180 During January 2022, the following transactions occurred. (Sheridan Company uses the perpetual inventory system.) 1. Hydra paid $320 interest on the note payable on January 1, 2022. The note is due December 31, 2023. 2. Hydra purchased $229,768 of inventory on account. 3. Hydra sold for $387,200 cash, inventory which cost $233,200. Hydra also collected $25,168 in sales taxes. 4. Hydra paid $202,400 in accounts payable. 5. Hydra paid $14,960 in sales taxes to the state. 6. Paid other operating expenses of $26,400. 7. On January 31, 2022, the payroll for the month consists of salaries and wages of $56,000. All salaries and wages are subject to 7.65% FICA taxes. A total of $7,840 federal income taxes are withheld.…
Current Attempt in Progress The following transactions occurred in Wendell Corporation, which has a December 31 year end. 1 2. 3. 4. 5. 6. 7 8. 10. Wendell has received $9,000 from customers in advance (on deposit) for inventory that will be shipped to those customers next year. Wendell signed a five-year, 7%, $200,000 note payable on July 1. The note requires annual instalment payments of $48,778 principal and interest on June 30 each of the next five years. Wendell purchased inventory for $120,000 on December 23 on account, terms n/30, FOB shipping point. The inventory was shipped on December 28 and received by Wendell on January 2. Wendell received $10,000 from customers on December 21 for services to be performed in January. On December 31, Wendell sold inventory for $8,000, plus 13% HST. The cost of goods sold was $5,000. The company uses a perpetual inventory system. Weekly salaries of $18,000 are paid every Friday for a five-day workweek (Monday to Friday). This year, December…
Do a journal entry based on this transections, round interest amounts to the nearest dollar,
Please prepare Journal Entries & T Accts for: 2019 December Adjusting Entries Amount o. One month of the prepaid insurance has expired. $170 p. The December portion of the rent paid on December 1 has expired. $900 q. Counted supplies and found this amount still on hand (recorded the amount used as an expense) $100 r. The amount collected in transaction m is unearned at December 31. $2,000 s. Three days of wages for December 29, 30, and 31 are unpaid. These will be paid in January. $2,900 t. One month of depreciation needs to be recorded. Estimated useful life of truck in years is: 361.111 3 u. Income taxes expense to be paid in the next fiscal year. $100
Journalizing and posting an adjusting entry for accrued interest expense Resort Travel borrowed $33,000 on September 1, 2018, by signing a one-year note payable to State One Bank. Resorts' interest expense on the note payable for the remainder of the fiscal year (September through November) is $355. Requirements Record the adjusting entry to accrue interest expense at November 30, 2018. Post the adjusting entry to the T-accounts of the two accounts affected by the adjustment.

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