Highland Cove Resort - Page 137 P3-7AThey have an August 31 year end do adjustments on a month basis. August AJEs have not been done. Complete the required AJEs and then prepare an updated TB.Then prepare the IS and BS. HIGHLAND COVE RESORTTrial BalanceAugust 31, 2014CreditDebit$ 17,520CashPrepaid insuranceSuppliesLandBuildingsAccumulated depreciation-buildings4,24099535,000150,000$ 47,750Furniture33,000Accumulated depreciation-furnitureAccounts payableUnearned revenueMortgage payableK. MacPhail, capitalK. MacPhail, drawings12,9258,50015,00096,00085,00042,735Rent revenue246,150Depreciation expenseInsurance expense5,7756,890Interest expenseRepairs expenseSalaries expenseSupplies expenseUtilities expense5,72014,400153,0004,45037,600$511,325$511,325Additional information:1. The company pays $6,360 for its annual insurance policy on March 31 of each year.2. A count shows $560 of supplies on hand on August 31, 2014.3. The buildings have an estimated useful life of 50 years.4. The furniture has an estimated useful life of 10 years.5. Customers must pay a $100 deposit if they want to book a room during peak times. An analysis ofthese bookings indicates that 150 deposits were received (all credited to Unearned Revenue) andonly 40 of the deposits have not yet been earned by August 31, 2014.6. The mortgage interest rate is 6.5% per year. Interest has been paid to August 1, 2014.7. Salaries accrued to the end of August were $1,450.8. The August utility bill of $3,420 is unrecorded and unpaid.9. On August 31, Highland Cove has earned $1,350 of rent revenue from customers who are currentlyrenting rooms but will not pay the amount owing until they check out in September. This amountis in addition to any deposits earned in item (5) above.

Financial statements consists of the following:- Statement of Financial position; Income Statement;…

Highland Cove Resort - Page 137 P3-7A They have an August 31 year end do adjustments on a month basis. August AJEs have not been done. Complete the required AJEs and then prepare an updated TB. Then prepare the IS and BS.

Highland Cove Resort - Page 137 P3-7A They have an August 31 year end do adjustments on a month basis. August AJEs have not been done. Complete the required AJEs and then prepare an updated TB. Then prepare the IS and BS.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Your staff person has provided you with the following journal entry for January 20x1 depreciation. The monthly deprecation is supposed to be $100.00. What is wrong with this entry?
Boilermaker Unlimited specializes in building new homes and remodeling existing homes. Remodeling projects include adding game rooms, changing kitchen cabinets and countertops, and updating bathrooms. Below is the year-end adjusted trial balance of Boilermaker Unlimited.BOILERMAKER UNLIMITEDAdjusted Trial Balance December 31, 2021Accounts Debits CreditsCash $ 16,000Accounts Receivable 25,000Supplies 32,000Prepaid Insurance 7,000Equipment 625,000Accumulated Depreciation $ 200,000Accounts Payable 31,000Salaries Payable 28,000Utilities Payable 5,000Notes Payable (due in 5 years) 150,000Common Stock 200,000Retained Earnings 31,000Dividends…
Larkspur Leasing Company signs a lease agreement on January 1, 2025, to lease electronic equipment to Crane Company. The term of the non-cancelable lease is 2 years, and payments are required at the end of each year. The following information relates to this agreement. 1. Crane has the option to purchase the equipment for $27,000 upon termination of the lease. It is not reasonably certain that Crane will exercise this option. 2. The equipment has a cost of $330, 000 and fair value of $368,000 to Larkspur Leasing. The useful economic life is 2 years, with a residual value of $27,000. 3. Larkspur Leasing desires to earn a return of 6% on its investment. 4. Collectibility of the payments by Larkspur Leasing is probable. Prepare the journal entries on the books of Larkspur Leasing to record the payments received under the lease and to recognize income for the years 2025 and 2026. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is…
Crane Leasing Company signs an agreement on January 1, 2025, to lease equipment to Cullumber Company. The following information relates to this agreement. 1. 2. 3. 4. 5. The term of the non-cancelable lease is 6 years with no renewal option. The equipment has an estimated economic life of 6 years. The cost of the asset to the lessor is $230,000. The fair value of the asset at January 1, 2025, is $230,000. The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $24,339, none of which is gu guaranteed. The agreement requires equal annual rental payments, beginning on January 1, 2025. Collectibility of the lease payments by Crane is probable.
Dr Erica chan MD owns EC health clinic she prepares annual financial statements and has a December 31 2023 year end A. On October 1, 2023 de chan prepaid 8200 for four months of rent B. On November 1, 2023 dr chan prepaid 156 to renew the clinic magazine subscription. The subscription is for 1 year C. On December 1, 2023 dr chan pays 2025 for supplies at the end of the year 1350 of supplies had not been used Required For the above transactions, records the initial journal entry and the adjusting entry required on December 31,2023
Do not give answer in image
Carla Vista Corporation has the following selected transactions during the year ended December 31, 2024: Jan. 1 Purchased a copyright for $117.480 cash. The copyright has a useful life of six years and a remaining legal life of 30 years. Mar. 1 Sept. 1 Dec. 31 Acquired a franchise with a contract period of nine years for $500,850; the expiration date is March 1, 2033, Paid cash of $38,820 and borrowed the remainder from the bank. Purchased a trademark with an indefinite life for $73,190 cash. As the purchase was being finalized, spent $33.150 cash in legal fees to successfully defend the trademark in court. Purchased an advertising agency for $640,000 cash. The agency's only assets reported on its statement of financial position immediately before the purchase were accounts receivable of $58,000, furniture of $170,000, and leasehold improvements of $320,000. Carla Vista hired an independent appraiser who estimated that the fair value of these assets was accounts receivable $58,000,…
I see the end portion. But it doesn't provide how they came up with that answer. Like the journal entries for each year showing all the purchases, adjustments, end of year, etc. Could you break it down by year showing how each one was obtained?
Prepare any adjusting entries required at June 30th,2025. Be sure to include calculations and explanations on how you got your answer.
Can I ask if the entry date is correct? how did you calculate the 15000, where did you reverse the adjusting entry of 3000 for the two months of 2022? can you list the computation ? Why being paid of 10 months are reversed instead of the two months of 2022? Thank you Nov 2022 Prepaid Rent Dr 15,000 Rent expense Cr 15,000 (Being rent paid for 8 months is reversed) (18,000 x 10/12)
I need help with: · Entering adjustments on the spreadsheet provided. · Using the new and adjusted totals, calculate the totals on the financial statements in the spaces provided.
Please help with the requirements. Thank you