Furniture Refinishers, Inc. Trial Balance on January 1, 2020 Account Titles Debit Credit Cash 5,000 Accounts receivable 4,000 Supplies 2,000 Small tools 6,000 Equipment Accumulated depreciation (on equipment) Other assets (not detailed to simplify) 9,000 Accounts payable 7,000 Dividends payable Notes payable Wages payable Interest payable Income taxes payable Unearned revenue Common stock (60,000 shares, $0.10 par value) Additional paid-in capital Retained earnings Service revenue Depreciation expense Wages expense Interest expense Income tax expense Miscellaneous expenses Totals Transactions during 2020 follow: 6,000 9,000 4,000 26,000 26,000 a. Borrowed $20,000 cash on July 1, 2020, signing a one-year, 10 percent note payable. b. Purchased equipment for $18,000 cash on July 1, 2020. c. Sold 10,000 additional shares of capital stock for cash at $0.50 market value per share at the beginning of the year. d. Earned $70,000 in revenues for 2020, including $14,000 on credit and the rest in cash. e. Incurred $27,000 in wages expense and $8,000 in miscellaneous expenses for 2020, with $7,000 on credit and the rest paid with cash. Note: Wages are paid in cash. f. Purchased additional small tools, $3,000 cash. g. Collected accounts receivable, $8,000. h. Paid accounts payable, $11,000. i. Purchased $10,000 of supplies on account. j. Received a $3,000 deposit on work to start January 15, 2021. k. Declared a cash dividend on December 1, $10,000; paid on December 31. Data for adjusting entries: 1. Supplies of $4,000 and small tools of $8,000 were counted on December 31, 2020 (debit Miscellaneous Expenses). m. Depreciation for 2020, $2,000. n. Interest accrued on notes payable (to be computed). o. Wages earned since the December 24 payroll but not yet paid, $3,000. p. Income tax expense was $4,000, payable in 2021.
Furniture Refinishers, Inc. Trial Balance on January 1, 2020 Account Titles Debit Credit Cash 5,000 Accounts receivable 4,000 Supplies 2,000 Small tools 6,000 Equipment Accumulated depreciation (on equipment) Other assets (not detailed to simplify) 9,000 Accounts payable 7,000 Dividends payable Notes payable Wages payable Interest payable Income taxes payable Unearned revenue Common stock (60,000 shares, $0.10 par value) Additional paid-in capital Retained earnings Service revenue Depreciation expense Wages expense Interest expense Income tax expense Miscellaneous expenses Totals Transactions during 2020 follow: 6,000 9,000 4,000 26,000 26,000 a. Borrowed $20,000 cash on July 1, 2020, signing a one-year, 10 percent note payable. b. Purchased equipment for $18,000 cash on July 1, 2020. c. Sold 10,000 additional shares of capital stock for cash at $0.50 market value per share at the beginning of the year. d. Earned $70,000 in revenues for 2020, including $14,000 on credit and the rest in cash. e. Incurred $27,000 in wages expense and $8,000 in miscellaneous expenses for 2020, with $7,000 on credit and the rest paid with cash. Note: Wages are paid in cash. f. Purchased additional small tools, $3,000 cash. g. Collected accounts receivable, $8,000. h. Paid accounts payable, $11,000. i. Purchased $10,000 of supplies on account. j. Received a $3,000 deposit on work to start January 15, 2021. k. Declared a cash dividend on December 1, $10,000; paid on December 31. Data for adjusting entries: 1. Supplies of $4,000 and small tools of $8,000 were counted on December 31, 2020 (debit Miscellaneous Expenses). m. Depreciation for 2020, $2,000. n. Interest accrued on notes payable (to be computed). o. Wages earned since the December 24 payroll but not yet paid, $3,000. p. Income tax expense was $4,000, payable in 2021.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Furniture Refinishers, Inc.
Trial Balance on January 1, 2020
Account Titles
Debit
Credit
Cash
5,000
Accounts receivable
4,000
Supplies
2,000
Small tools
6,000
Equipment
Accumulated depreciation (on equipment)
Other assets (not detailed to simplify)
9,000
Accounts payable
7,000
Dividends payable
Notes payable
Wages payable
Interest payable
Income taxes payable
Unearned revenue
Common stock (60,000 shares, $0.10 par value)
Additional paid-in capital
Retained earnings
Service revenue
Depreciation expense
Wages expense
Interest expense
Income tax expense
Miscellaneous expenses
Totals
Transactions during 2020 follow:
6,000
9,000
4,000
26,000
26,000
a. Borrowed $20,000 cash on July 1, 2020, signing a one-year, 10 percent note payable.
b. Purchased equipment for $18,000 cash on July 1, 2020.
c. Sold 10,000 additional shares of capital stock for cash at $0.50 market value per share at the beginning of the year.
d. Earned $70,000 in revenues for 2020, including $14,000 on credit and the rest in cash.
e. Incurred $27,000 in wages expense and $8,000 in miscellaneous expenses for 2020, with $7,000 on credit and the rest
paid with cash. Note: Wages are paid in cash.
f. Purchased additional small tools, $3,000 cash.
g. Collected accounts receivable, $8,000.
h. Paid accounts payable, $11,000.
i. Purchased $10,000 of supplies on account.
j. Received a $3,000 deposit on work to start January 15, 2021.
k. Declared a cash dividend on December 1, $10,000; paid on December 31.
Data for adjusting entries:
1. Supplies of $4,000 and small tools of $8,000 were counted on December 31, 2020 (debit Miscellaneous Expenses).
m. Depreciation for 2020, $2,000.
n. Interest accrued on notes payable (to be computed).
o. Wages earned since the December 24 payroll but not yet paid, $3,000.
p. Income tax expense was $4,000, payable in 2021.
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