Homework Help is Here – Start Your Trial Now!
Business
Finance
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
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
See similar textbooks
icon
Related questions
Question

(c) 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:
 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
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
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting Changes and Error Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS