Comprehensive Accounting Cycle Review 9-1 (Part Level Submission) Pina Colada Corp.’s unadjusted trial balance at December 1, 2017, is presented below. Debit Credit Cash $25,900 Accounts Receivable 35,100 Notes Receivable 8,400 Interest Receivable 0 Inventory 36,280 Prepaid Insurance 3,600 Land 21,800 Buildings 140,100 Equipment 60,500 Patent 9,630 Allowance for Doubtful Accounts $600 Accumulated Depreciation—Buildings 46,700 Accumulated Depreciation—Equipment 24,200 Accounts Payable 28,100 Salaries and Wages Payable 0 Notes Payable (due April 30, 2018) 12,900 Income Taxes Payable 0 Interest Payable 0 Notes Payable (due in 2023) 36,000 Common Stock 56,400 Retained Earnings 24,410 Dividends 13,500 Sales Revenue 923,500 Interest Revenue 0 Gain on Disposal of Plant Assets 0 Bad Debt Expense 0 Cost of Goods Sold 631,500 Depreciation Expense 0 Income Tax Expense 0 Insurance Expense 0 Interest Expense 0 Other Operating Expenses 61,000 Amortization Expense 0 Salaries and Wages Expense 105,500 Total $1,152,810 $1,152,810 The following transactions occurred during December. Dec. 2 Purchased equipment for $16,200, plus sales taxes of $1,800 (paid in cash). 2 Pina 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 Pina sold for $5,450 on account inventory that cost $3,280. 23 Salaries and wages of $6,370 were paid. Adjustment data: 1. Pina estimates that uncollectible accounts receivable at year-end are $4,190. 2. The note receivable is a one-year, 8% note dated April 1, 2017. No interest has been recorded. 3. The balance in prepaid insurance represents payment of a $3,600, 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 $2,340. 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 $2,070. 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 $12,000. It was unpaid at December 31. (a) 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 0 for the amounts. Record journal entries in the order presented in the problem.)

Comprehensive Accounting Cycle Review 9-1 (Part Level Submission) Pina Colada Corp.’s unadjusted trial balance at December 1, 2017, is presented below. Debit Credit Cash $25,900 Accounts Receivable 35,100 Notes Receivable 8,400 Interest Receivable 0 Inventory 36,280 Prepaid Insurance 3,600 Land 21,800 Buildings 140,100 Equipment 60,500 Patent 9,630 Allowance for Doubtful Accounts $600 Accumulated Depreciation—Buildings 46,700 Accumulated Depreciation—Equipment 24,200 Accounts Payable 28,100 Salaries and Wages Payable 0 Notes Payable (due April 30, 2018) 12,900 Income Taxes Payable 0 Interest Payable 0 Notes Payable (due in 2023) 36,000 Common Stock 56,400 Retained Earnings 24,410 Dividends 13,500 Sales Revenue 923,500 Interest Revenue 0 Gain on Disposal of Plant Assets 0 Bad Debt Expense 0 Cost of Goods Sold 631,500 Depreciation Expense 0 Income Tax Expense 0 Insurance Expense 0 Interest Expense 0 Other Operating Expenses 61,000 Amortization Expense 0 Salaries and Wages Expense 105,500 Total $1,152,810 $1,152,810 The following transactions occurred during December. Dec. 2 Purchased equipment for $16,200, plus sales taxes of $1,800 (paid in cash). 2 Pina 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 Pina sold for $5,450 on account inventory that cost $3,280. 23 Salaries and wages of $6,370 were paid. Adjustment data: 1. Pina estimates that uncollectible accounts receivable at year-end are $4,190. 2. The note receivable is a one-year, 8% note dated April 1, 2017. No interest has been recorded. 3. The balance in prepaid insurance represents payment of a $3,600, 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 $2,340. 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 $2,070. 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 $12,000. It was unpaid at December 31. (a) 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 0 for the amounts. Record journal entries in the order presented in the problem.)

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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Comprehensive Accounting Cycle Review 9-1 (Part Level Submission)

Pina Colada Corp.’s unadjusted trial balance at December 1, 2017, is presented below.

	Debit	Credit
Cash	$25,900
Accounts Receivable	35,100
Notes Receivable	8,400
Interest Receivable	0
Inventory	36,280
Prepaid Insurance	3,600
Land	21,800
Buildings	140,100
Equipment	60,500
Patent	9,630
Allowance for Doubtful Accounts		$600
Accumulated Depreciation—Buildings		46,700
Accumulated Depreciation—Equipment		24,200
Accounts Payable		28,100
Salaries and Wages Payable		0
Notes Payable (due April 30, 2018)		12,900
Income Taxes Payable		0
Interest Payable		0
Notes Payable (due in 2023)		36,000
Common Stock		56,400
Retained Earnings		24,410
Dividends	13,500
Sales Revenue		923,500
Interest Revenue		0
Gain on Disposal of Plant Assets		0
Bad Debt Expense	0
Cost of Goods Sold	631,500
Depreciation Expense	0
Income Tax Expense	0
Insurance Expense	0
Interest Expense	0
Other Operating Expenses	61,000
Amortization Expense	0
Salaries and Wages Expense	105,500
Total	$1,152,810	$1,152,810

The following transactions occurred during December.

Dec. 2		Purchased equipment for $16,200, plus sales taxes of $1,800 (paid in cash).
2		Pina 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		Pina sold for $5,450 on account inventory that cost $3,280.
23		Salaries and wages of $6,370 were paid.

Adjustment data:

1.		Pina estimates that uncollectible accounts receivable at year-end are $4,190.
2.		The note receivable is a one-year, 8% note dated April 1, 2017. No interest has been recorded.
3.		The balance in prepaid insurance represents payment of a $3,600, 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 $2,340.
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 $2,070.
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 $12,000. It was unpaid at December 31.

(a)

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 0 for the amounts. Record journal entries in the order presented in the problem.)

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