Mackenzie Corp. is preparing the December 31, 2023, year-end financial statements. Following are selected unadjusted account balances: Estimated warranty liability Income tax expense Mortgage payable, 58 $ 6,480 120-day note payable, 48 121,000 Unearned revenues 444,000 Warranty expense $ 82,000 298,000 6,600 Additional information: a. $11,000 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 $128,040. 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 $142,000 given similar cases in the industry. c. During December, Mackenzie had sales of $712,000. 5% of sales typically require warranty work equal to 20% of the sales amount. d. Mortgage payments are made on the first day of each month. e. $111,700 of the Unearned Revenues remain unearned at December 31, 2023. f. The 120-day note payable was dated November 15, 2023. Required: 1. Prepare any required adjusting entries at December 31, 2023, 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, 2023, year-end financial statements. Following are selected unadjusted account balances: Estimated warranty liability Income tax expense Mortgage payable, 58 $ 6,480 120-day note payable, 48 121,000 Unearned revenues 444,000 Warranty expense $ 82,000 298,000 6,600 Additional information: a. $11,000 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 $128,040. 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 $142,000 given similar cases in the industry. c. During December, Mackenzie had sales of $712,000. 5% of sales typically require warranty work equal to 20% of the sales amount. d. Mortgage payments are made on the first day of each month. e. $111,700 of the Unearned Revenues remain unearned at December 31, 2023. f. The 120-day note payable was dated November 15, 2023. Required: 1. Prepare any required adjusting entries at December 31, 2023, 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
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Jj.82.
Transcribed Image Text:Mackenzie Corp. is preparing the December 31, 2023, year-end financial statements. Following are selected unadjusted account
balances:
Estimated warranty liability
Income tax expense
Mortgage payable, 5%
$ 6,480
121,000
444,000
120-day note payable, 48
Unearned revenues
Warranty expense
$ 82,000
298,000
6,600
Additional information:
a. $11,000 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 $128,040.
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 $142,000 given similar cases in the industry.
c. During December, Mackenzie had sales of $712,000. 5% of sales typically require warranty work equal to 20% of the sales amount.
d. Mortgage payments are made on the first day of each month.
e. $111,700 of the Unearned Revenues remain unearned at December 31, 2023.
f. The 120-day note payable was dated November 15, 2023.
Required:
1. Prepare any required adjusting entries at December 31, 2023, for each of the above. (Use 365 days a year. Do not round
intermediate calculations and round the final answers to 2 decimal places.)
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