please do the general entries and adjusting entries thanks.vii. During the year, Majestic paid the taxes it owed at the end of 2016. It also paid $11,000 in instalments on its 2017 income taxes. It’s estimated that Majestic owes an additional $12,000 in income taxes for 2017.viii. The deposits reported on the 2016 balance sheet pertained to customers who were perceived to be high risk to whom Majestic wasn’t prepared to offer credit. These customers were required to give deposits against shipping to be done during 2017. These customers used shipping services during 2017 in excess of the amount of the deposits. Majestic decided in 2017 to offer credit to these customers. The deposits are not included in the other revenue recognized in the year.ix. Members of the Mozart family sometimes used Majestic employees for personal work at their homes and cottages. Usually, the work was done on weekends and the employees were paid at overtime rates. Majestic pays the employees’ wages for the work done for the family members and accounts for the cost as a wage expense. The wages paid for work done on behalf of Mozart family members was $11,000. Majestic Trucking Inc. (Majestic) is a small trucking company that carries freight between centres in centralCanada and the northeastern United States. The Mozart family of Cobourg owns Majestic, butprofessional managers manage it. One member of the Mozart family serves as the chair of the board ofdirectors. No other family members are actively involved with Majestic.Majestic's balance sheet for December 31, 2016, the company's year-end, is shown below. Majestic usesits financial statements for tax purposes, to show to the holders of the long-term notes that the companyissued to finance the purchase of some of its trucks, and to provide information to the shareholders.Majestic Trucking Inc.Balance SheetAs of December 31, 2016AssetsLiabilities and Shareholders' EquityCash$ 77,340Accounts payable$ 42,220Accounts receivable81,500Taxes payable15,000Prepaid insurance18,000Wages payable10,000Current assets176,840Customer deposits27,000Capital assets465,000Interest payable11,900Accumulated depreciation(201,700)Current liabilities106,120Long-term notes payable140,000Common shares80,000Retained earnings114,020$440,140$440,140It is now January 2018. Majestic needs to prepare its financial statements for the year ended December31, 2017. You have obtained the following information about the fiscal year just ended:

In the given question we are provided with the Balance sheet of Majestic trucking Inc. (Majestic)…

Answered: please do the general entries and…

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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please do the general entries and adjusting entries thanks.

vii. During the year, Majestic paid the taxes it owed at the end of 2016. It also paid $11,000 in instalments on its 2017 income taxes. It’s estimated that Majestic owes an additional $12,000 in income taxes for 2017.

viii. The deposits reported on the 2016 balance sheet pertained to customers who were perceived to be high risk to whom Majestic wasn’t prepared to offer credit. These customers were required to give deposits against shipping to be done during 2017. These customers used shipping services during 2017 in excess of the amount of the deposits. Majestic decided in 2017 to offer credit to these customers. The deposits are not included in the other revenue recognized in the year.

ix. Members of the Mozart family sometimes used Majestic employees for personal work at their homes and cottages. Usually, the work was done on weekends and the employees were paid at overtime rates. Majestic pays the employees’ wages for the work done for the family members and accounts for the cost as a wage expense. The wages paid for work done on behalf of Mozart family members was $11,000.