Mackenzie Corp. is preparing the December 31, 2023, year-end financial statements. Following are selected unadjusted accountbalances:Estimated warranty liabilityIncome tax expenseMortgage payable, 6%$ 6,590133,100480,000120-day note payable, 5%Unearned revenuesWarranty expense$ 93,000309,0007,700Additional information:a. $12,100 of income tax was accrued monthly from January through to November inclusive and paid on the 15th day of the followingmonth. The actual amount of tax expense for the year is determined to be $139,040.b. A customer is suing the company. Legal advisers believe it is probable that the company will have to pay damages, the amount ofwhich will approximate $153,000 given similar cases in the industry.c. During December, Mackenzie had sales of $723,000. 6% of sales typically require warranty work equal to 15% of the sales amount.d. Mortgage payments are made on the first day of each month.e. $112,800 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 roundintermediate calculations and round the final answers to 2 decimal places.)

Adjusting Entries :— It is the journal entry made at the end of the accounting period to adjust the…

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, 6% Additional information: 5 $12.100 $ 6,590 133,100 480,000 120-day note payable, 5% Unearned revenues Warranty expense $ 93,000 309,000 7,700

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, 6% Additional information: 5 $12.100 $ 6,590 133,100 480,000 120-day note payable, 5% Unearned revenues Warranty expense $ 93,000 309,000 7,700

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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