Following is the unadjusted trial balance for Sun Energy Co. on December 31, 2017. Sun Energy Co. Unadjusted Trial Balance Year Ended December 31, 2017 Account Debit Credit Cash $5,000 Accounts Receivable 3,300 Merchandise Inventory 4,500 Buildings 2,400 Equipment 3,200 Accounts Payable $5,700 Salaries Payable 3,500 Common Stock 2,500 Dividends Sales Revenue 14,000 COGS 3,800 Salaries Expense 3,500 Totals $25,700 $25,700 You are also given the following supplemental information: • A pending lawsuit, claiming $2,500 in damages, is considered likely to favor the plaintiff and can be reasonably estimated. Sun Energy Co. believes a customer may win a lawsuit for $3,500 in damages, but the outcome is only reasonably possible to occur. Sun Energy calculated warranty expense estimates of $210.
Following is the unadjusted trial balance for Sun Energy Co. on December 31, 2017. Sun Energy Co. Unadjusted Trial Balance Year Ended December 31, 2017 Account Debit Credit Cash $5,000 Accounts Receivable 3,300 Merchandise Inventory 4,500 Buildings 2,400 Equipment 3,200 Accounts Payable $5,700 Salaries Payable 3,500 Common Stock 2,500 Dividends Sales Revenue 14,000 COGS 3,800 Salaries Expense 3,500 Totals $25,700 $25,700 You are also given the following supplemental information: • A pending lawsuit, claiming $2,500 in damages, is considered likely to favor the plaintiff and can be reasonably estimated. Sun Energy Co. believes a customer may win a lawsuit for $3,500 in damages, but the outcome is only reasonably possible to occur. Sun Energy calculated warranty expense estimates of $210.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 50E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
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![Following is the unadjusted trial balance for Sun Energy Co. on December 31, 2017.
Sun Energy Co.
Unadjusted Trial Balance
Year Ended December 31, 2017
Account
Debit
Credit
Cash
$5,000
Accounts Receivable
3,300
Merchandise Inventory
4,500
Buildings
2,400
Equipment
3,200
Accounts Payable
$5,700
Salaries Payable
3,500
Common Stock
2,500
Dividends
Sales Revenue
14,000
COGS
3,800
Salaries Expense
3,500
Totals
$25,700
$25,700
You are also given the following supplemental information:
• A pending lawsuit, claiming $2,500 in damages, is considered likely to favor the plaintiff and can be reasonably estimated. Sun Energy Co. believes a customer may win a lawsuit for $3,500 in
damages, but the outcome is only reasonably possible to occur. Sun Energy calculated warranty expense estimates of $210.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fff5e6a50-45d0-43a3-8daf-559d4373adfe%2F14ce89dd-fad0-41cd-ae53-d2feabaa7415%2Fkg32ht.png&w=3840&q=75)
Transcribed Image Text:Following is the unadjusted trial balance for Sun Energy Co. on December 31, 2017.
Sun Energy Co.
Unadjusted Trial Balance
Year Ended December 31, 2017
Account
Debit
Credit
Cash
$5,000
Accounts Receivable
3,300
Merchandise Inventory
4,500
Buildings
2,400
Equipment
3,200
Accounts Payable
$5,700
Salaries Payable
3,500
Common Stock
2,500
Dividends
Sales Revenue
14,000
COGS
3,800
Salaries Expense
3,500
Totals
$25,700
$25,700
You are also given the following supplemental information:
• A pending lawsuit, claiming $2,500 in damages, is considered likely to favor the plaintiff and can be reasonably estimated. Sun Energy Co. believes a customer may win a lawsuit for $3,500 in
damages, but the outcome is only reasonably possible to occur. Sun Energy calculated warranty expense estimates of $210.
![](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fff5e6a50-45d0-43a3-8daf-559d4373adfe%2F14ce89dd-fad0-41cd-ae53-d2feabaa7415%2F5xyh3jb.png&w=3840&q=75)
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