Can you help prepare the 2 attached journal entries for this example The management of Banciu Corporation provides you with comparative balance sheets at December 31, 20X1, and December 31, 20X0, appearing below. December 31, 20X120X0Assets Cash$174,000 $223,200 Accounts receivable 306,000 327,600 Allowance for uncollectible accounts (19,200) (20,400)Inventories 579,600 645,600 Machinery and equipment 1,112,400 776,400 Accumulated depreciation on machinery and equipment (499,200) (446,400)Leasehold improvements 104,400 104,400 Accumulated amortization on leasehold improvements (69,600) (58,800)Securities held for plant expansion 180,000 0 Patents 33,360 36,000 Totals$1,901,760 $1,587,600 Liabilities and stockholders’ equity Accounts payable$279,360 $126,000 Dividend payable 48,000 0 Current portion of 6% serial bonds payable 60,000 60,000 6% serial bonds payable—noncurrent portion 300,000 360,000 Preferred stock 108,000 120,000 Common stock 600,000 600,000 Retained earnings 506,400 321,600 Totals$1,901,760 $1,587,600 Supplemental Information:a. The following table presents a comparative analysis of retained earnings as of December 31, 20X1, and December 31, 20X0. December 31, 20X1 20X0Beginning balance$321,600 $157,200 Net income 234,000 206,400 555,600 363,600 Dividends declared (48,000) (42,000)Premium on repurchased preferred Stock (1,200) -0- Ending balance$506,400 $321,600 b. On December 10, 20X1, the board of directors declared a cash dividend of $0.24 per share, payable to holders of common stock on January 10, 20X2.c Purchased new machinery for $463,000. In addition, Banciu sold certain machinery it was no longer using for $57,600. The machinery cost $127,000 and had accumulated depreciation of $53,800 at the date of the sale. Banciu made no other entries in Machinery and equipment or related accounts other than for depreciation.d. Purchased 120 preferred shares, par value $100, at $110 and subsequently canceled the shares. Banciu debited the premium paid to Retained earnings.e. Paid $2,400 of legal costs in successful defense of a new patent, which it correctly debited to the Patents account. It recorded patent amortization amounting to $5,040 during the year ended December 31, 20X1.f. During 20X1, Banciu wrote off accounts receivable totaling $3,600 as uncollectible.g. During 20X1, Banciu purchased $180,000 of securities that are being held for future plant expansion. ### How to Record a Bad Debt Expense Adjustment in the General JournalWhen preparing the entry for bad debt expense adjustment to cash from operations, it is important to follow proper accounting procedures. Below is an illustrated example to aid in understanding.#### General Journal Entry Example:**Transaction:** Note: Enter debits before credits.| Transaction | General Journal | Debit | Credit ||-------------|-----------------|-------|--------|| **(f3)** | | | || | | | || | | | || | | | || | | | || | | | |##### Steps to Enter the Bad Debt Expense Adjustment:1. **Identify the Accounts Involved:** - **Debiting (Bad Debt Expense):** This account is used to record the estimated uncollectible debts for the period. - **Crediting (Allowance for Doubtful Accounts):** This is a contra-asset account that offsets the accounts receivable account.2. **Prepare the Journal Entry:** - **Date the entry** on the date it is being prepared. - **Debit the Bad Debt Expense account** for the amount of the estimated uncollectible receivables. - **Credit the Allowance for Doubtful Accounts** for the same amount to adjust the accounts receivable balance.##### Example Entry:Suppose the estimated uncollectible debts amount to $5,000. The journal entry would be:| Transaction | General Journal | Debit | Credit ||-------------|--------------------------|--------|---------|| **(f3)** | Bad Debt Expense | $5,000 | || | Allowance for Doubtful Accounts | | $5,000 |This entry records the estimated bad debt expense for the period and adjusts the Allowance for Doubtful Accounts accordingly.### Summary:Recording a bad debt expense adjustment involves debiting the Bad Debt Expense account and crediting the Allowance for Doubtful Accounts. By following these steps, you can ensure accurate financial reporting of potential losses due to uncollectible accounts receivables. ### Preparing Journal Entries for Security Purchases for Plant Expansion#### Instructions:1. **Transcription Overview:** - The task is to prepare a journal entry recording the purchase of securities intended for plant expansion.2. **Key Information:** - **Note:** Debits should be entered before credits.#### Steps and Table Explanation:1. **Transaction Table:** - **Column Headers:** - **Transaction:** Indicates the general transaction number, here labeled as "(g1)". - **General Journal:** Provides space for detailing the journal entry, including accounts and descriptions. - **Debit:** Column to enter the debit amounts. - **Credit:** Column to enter the credit amounts. 2. **Entry Process:** - Under the "General Journal" column, specify the accounts affected by the purchase. - Enter the corresponding amounts for the debits and credits in their respective columns.##### Example Table Layout:| **Transaction** | **General Journal** | **Debit** | **Credit** ||:---------------:|:-------------------:|:---------:|:----------:|| (g1) | | | || | | | || | | | || | | | || | | | || | | | |By following the above instructions, you can ensure accurate financial reporting and documentation for purchases related to plant expansion. Always remember to detail the accounts appropriately and verify the amounts to maintain balanced journal entries.

Journal Entry: Method of recording financial transactions in the book of original entry by debiting…

an you help prepare the 2 attached journal entries for this example The management of Banciu Corporation provides you with comparative balance sheets at December 31, 20X1, and December 31, 20X0, appearing below. December 31, 20X1 20X0 Assets Cash $ 174,000 $ 223,200 Accounts receivable 306,000 327,600 Allowance for uncollectible accounts (19,200 ) (20,400 ) Inventories 579,600 645,600 Machinery and equipment 1,112,400 776,400 Accumulated depreciation on machinery and equipment (499,200 ) (446,400 ) Leasehold improvements 104,400 104,400 Accumulated amortization on leasehold improvements (69,600 ) (58,800 ) Securities held for plant expansion 180,000 0 Patents 33,360 36,000 Totals $ 1,901,760 $ 1,587,600 Liabilities and stockholders’ equity Accounts payable $ 279,360 $ 126,000 Dividend payable 48,000 0 Current portion of 6% serial bonds payable 60,000 60,000 6% serial bonds payable—noncurrent portion 300,000 360,000 Preferred stock 108,000 120,000 Common stock 600,000 600,000 Retained earnings 506,400 321,600 Totals $ 1,901,760 $ 1,587,600 Supplemental Information: a. The following table presents a comparative analysis of retained earnings as of December 31, 20X1, and December 31, 20X0. December 31, 20X1 20X0 Beginning balance $ 321,600 $ 157,200 Net income 234,000 206,400 555,600 363,600 Dividends declared (48,000 ) (42,000 ) Premium on repurchased preferred Stock (1,200 ) -0- Ending balance $ 506,400 $ 321,600 b. On December 10, 20X1, the board of directors declared a cash dividend of $0.24 per share, payable to holders of common stock on January 10, 20X2. c Purchased new machinery for $463,000. In addition, Banciu sold certain machinery it was no longer using for $57,600. The machinery cost $127,000 and had accumulated depreciation of $53,800 at the date of the sale. Banciu made no other entries in Machinery and equipment or related accounts other than for depreciation. d. Purchased 120 preferred shares, par value $100, at $110 and subsequently canceled the shares. Banciu debited the premium paid to Retained earnings. e. Paid $2,400 of legal costs in successful defense of a new patent, which it correctly debited to the Patents account. It recorded patent amortization amounting to $5,040 during the year ended December 31, 20X1. f. During 20X1, Banciu wrote off accounts receivable totaling $3,600 as uncollectible. g. During 20X1, Banciu purchased $180,000 of securities that are being held for future plant expansion.

an you help prepare the 2 attached journal entries for this example The management of Banciu Corporation provides you with comparative balance sheets at December 31, 20X1, and December 31, 20X0, appearing below. December 31, 20X1 20X0 Assets Cash $ 174,000 $ 223,200 Accounts receivable 306,000 327,600 Allowance for uncollectible accounts (19,200 ) (20,400 ) Inventories 579,600 645,600 Machinery and equipment 1,112,400 776,400 Accumulated depreciation on machinery and equipment (499,200 ) (446,400 ) Leasehold improvements 104,400 104,400 Accumulated amortization on leasehold improvements (69,600 ) (58,800 ) Securities held for plant expansion 180,000 0 Patents 33,360 36,000 Totals $ 1,901,760 $ 1,587,600 Liabilities and stockholders’ equity Accounts payable $ 279,360 $ 126,000 Dividend payable 48,000 0 Current portion of 6% serial bonds payable 60,000 60,000 6% serial bonds payable—noncurrent portion 300,000 360,000 Preferred stock 108,000 120,000 Common stock 600,000 600,000 Retained earnings 506,400 321,600 Totals $ 1,901,760 $ 1,587,600 Supplemental Information: a. The following table presents a comparative analysis of retained earnings as of December 31, 20X1, and December 31, 20X0. December 31, 20X1 20X0 Beginning balance $ 321,600 $ 157,200 Net income 234,000 206,400 555,600 363,600 Dividends declared (48,000 ) (42,000 ) Premium on repurchased preferred Stock (1,200 ) -0- Ending balance $ 506,400 $ 321,600 b. On December 10, 20X1, the board of directors declared a cash dividend of $0.24 per share, payable to holders of common stock on January 10, 20X2. c Purchased new machinery for $463,000. In addition, Banciu sold certain machinery it was no longer using for $57,600. The machinery cost $127,000 and had accumulated depreciation of $53,800 at the date of the sale. Banciu made no other entries in Machinery and equipment or related accounts other than for depreciation. d. Purchased 120 preferred shares, par value $100, at $110 and subsequently canceled the shares. Banciu debited the premium paid to Retained earnings. e. Paid $2,400 of legal costs in successful defense of a new patent, which it correctly debited to the Patents account. It recorded patent amortization amounting to $5,040 during the year ended December 31, 20X1. f. During 20X1, Banciu wrote off accounts receivable totaling $3,600 as uncollectible. g. During 20X1, Banciu purchased $180,000 of securities that are being held for future plant expansion.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter9: Auditing The Revenue Cycle.

Section: Chapter Questions

Problem 30RQSC

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	December 31,
	20X1	20X0
Assets
Cash	$	174,000		$	223,200
Accounts receivable		306,000			327,600
Allowance for uncollectible accounts		(19,200	)		(20,400	)
Inventories		579,600			645,600
Machinery and equipment		1,112,400			776,400
Accumulated depreciation on machinery and equipment		(499,200	)		(446,400	)
Leasehold improvements		104,400			104,400
Accumulated amortization on leasehold improvements		(69,600	)		(58,800	)
Securities held for plant expansion		180,000			0
Patents		33,360			36,000
Totals	$	1,901,760		$	1,587,600
Liabilities and stockholders’ equity
Accounts payable	$	279,360		$	126,000
Dividend payable		48,000			0
Current portion of 6% serial bonds payable		60,000			60,000
6% serial bonds payable—noncurrent portion		300,000			360,000
Preferred stock		108,000			120,000
Common stock		600,000			600,000
Retained earnings		506,400			321,600
Totals	$	1,901,760		$	1,587,600