Examine the above Unadjusted- and Adjusted Trial Balances. Calculate and describe all Journal Entries that would underlie the 2020 Adjusting Entries that relate to the following two transactions:
Examine the above Unadjusted- and Adjusted Trial Balances. Calculate and describe all Journal Entries that would underlie the 2020 Adjusting Entries that relate to the following two transactions:
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
(c) Examine the above Unadjusted- and Adjusted
two transactions:
31 Dec 2020, ABC Puzzle company has not yet paid salaries for Dec 2020 in the
amount of €15,000
01 Aug 2020, the ABC company has issued a promissory note (part of notes payable)
for €15,000 with an annual interest rate of 10% (maturity date: 01 February 2021).
![31 Dec 2020
Unadjusted Trial Balance
Adjusting Entries
Adjusted Trial Balance
Accounts
Debit
Credit
Debit
Credit
Debit
Credit
Cash
€ 120,000
€ 120,000
Accounts Receivable
100,000
100,000
Notes Receivable
15,000
15,000
Interest Receivable
€ 1,500
1,500
Merchandise Inventory
130,000
130,000
Prepaid Insurance
2,000
€ 1,000
1,000
Land
70,000
70,000
Buildings & Equipment
350,000
350,000
Accumulated Depreciation
€ 115,000
45,000
€ 160,000
Accounts Payable
180,000
180,000
Notes payable
Salaries Payable
25,000
25,000
15,000
15,000
Interest Payable
Dividends Payable
1,200
1,200
20,000
20,000
Bond payables
100,000
100,000
Common stock
(=Ordinary Share Capital)
Additional Paid-in Capital
(=Share Premium)
180,000
180,000
30,000
30,000
Retained Earnings
40,000
40,000
Sales Revenue
600,000
600,000
Interest Revenue
1,500
1,500
Rent Revenue
10,000
10,000
Cost of Goods Sold
408,000
408,000
Advertising Expense
Salaries Expense
20,000
20,000
80,000
5,000
15,000
95,000
Interest Expense
1,200
6,200
Insurance Expense
1,000
1,000
Depreciation Expense
45,000
45,000
Totals
1,300,000
1,300,000
63,700
63,700
1,362,700
1,362,700](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc96049a5-4725-48b6-b566-7bbb1f3824a1%2Fb2e91ae6-7d4a-4b70-abfb-729efd625fbf%2F38l42fn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:31 Dec 2020
Unadjusted Trial Balance
Adjusting Entries
Adjusted Trial Balance
Accounts
Debit
Credit
Debit
Credit
Debit
Credit
Cash
€ 120,000
€ 120,000
Accounts Receivable
100,000
100,000
Notes Receivable
15,000
15,000
Interest Receivable
€ 1,500
1,500
Merchandise Inventory
130,000
130,000
Prepaid Insurance
2,000
€ 1,000
1,000
Land
70,000
70,000
Buildings & Equipment
350,000
350,000
Accumulated Depreciation
€ 115,000
45,000
€ 160,000
Accounts Payable
180,000
180,000
Notes payable
Salaries Payable
25,000
25,000
15,000
15,000
Interest Payable
Dividends Payable
1,200
1,200
20,000
20,000
Bond payables
100,000
100,000
Common stock
(=Ordinary Share Capital)
Additional Paid-in Capital
(=Share Premium)
180,000
180,000
30,000
30,000
Retained Earnings
40,000
40,000
Sales Revenue
600,000
600,000
Interest Revenue
1,500
1,500
Rent Revenue
10,000
10,000
Cost of Goods Sold
408,000
408,000
Advertising Expense
Salaries Expense
20,000
20,000
80,000
5,000
15,000
95,000
Interest Expense
1,200
6,200
Insurance Expense
1,000
1,000
Depreciation Expense
45,000
45,000
Totals
1,300,000
1,300,000
63,700
63,700
1,362,700
1,362,700
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