Mackenzie Corp. is preparing the December 31, 2020, year-end financial statements, Following are selected unadjusted account balances: 120 day note payable, 5% Estimated warranty liability Income tax expense Mortgage payable, 6% $ 6,510 124, 300 Unearned revenues 456,000 Marranty expense $85,000 301,000 6,900 Additional information: a. $11,300 of income tax was accrucd monthly from January through to November inclusive and paid on the 15th day of the following month. The actual amount of tax expense for the year is determined to be $131.040. b. A customer is suing the company. Legal advisers believe it is probable that the company will have to pay damages, the amount of which will approximate $145,000 given similar cases in the industry. c. During December, Mackenzie had sales of $715,000, 4% of sales typically require warranty work equal to 25% of the sales amount d. Mortgage payments are made on the first day of each month. e. $112,000 of the Unearned Revenues remain unearned at December 31, 2020. 1. The 120-day note payable was dated November 15, 2020. Required: 1. Prepare any required adjusting entries at December 31, 2020, for each of the above. (Use 365 days a year. Do not round Intermediate calculations and round the final answers to 2 decimal places.)
Mackenzie Corp. is preparing the December 31, 2020, year-end financial statements, Following are selected unadjusted account balances: 120 day note payable, 5% Estimated warranty liability Income tax expense Mortgage payable, 6% $ 6,510 124, 300 Unearned revenues 456,000 Marranty expense $85,000 301,000 6,900 Additional information: a. $11,300 of income tax was accrucd monthly from January through to November inclusive and paid on the 15th day of the following month. The actual amount of tax expense for the year is determined to be $131.040. b. A customer is suing the company. Legal advisers believe it is probable that the company will have to pay damages, the amount of which will approximate $145,000 given similar cases in the industry. c. During December, Mackenzie had sales of $715,000, 4% of sales typically require warranty work equal to 25% of the sales amount d. Mortgage payments are made on the first day of each month. e. $112,000 of the Unearned Revenues remain unearned at December 31, 2020. 1. The 120-day note payable was dated November 15, 2020. Required: 1. Prepare any required adjusting entries at December 31, 2020, for each of the above. (Use 365 days a year. Do not round Intermediate calculations and round the final answers to 2 decimal places.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Mackenzie Corp. is preparing the December 31, 2020, year-end financial statements, Following are selected unadjusted account
balances:
Estimated warranty liability
Income tax expense
$ 6,510
120 day note payable, 5%
Unearned revenues
S 85, 000
301,000
6,900
124, 300
Mortgage payable, 6%
456,000
Narranty expense
Additional information:
a. $11.300 of income tax was accrued monthly from January through to November inclusive and paid on the 15th day of the following
month. The actual amount of tax expense for the year is determined to be $131,040.
b. A customer is suing the company. Legal advisers believe it is probable that the company will have to pay damages, the amount of
which will approximate $145,000 given similar cases in the industry.
c. During December, Mackenzie had sales of $715,000. 4% of sales typically require warranty work equal to 25% of the sales amount
d. Mortgage payments are made on the first day of each month.
e. $112,000 of the Unearned Revenues remain unearned at December 31, 2020.
f. The 120-day note payable was dated November 15, 2020.
Required:
1. Prepare any required adjusting entries at December 31, 2020, for each of the above. (Use 365 days a year. Do not round
intermediate calculations and round the final answers to 2 decimal places.)
View transaction list
Journal entry worksheet
2
3 4 5
6
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education