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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
please do the general entries and
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
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.
Transcribed Image Text:Majestic Trucking Inc. (Majestic) is a small trucking company that carries freight between centres in central
Canada and the northeastern United States. The Mozart family of Cobourg owns Majestic, but
professional managers manage it. One member of the Mozart family serves as the chair of the board of
directors. 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 uses
its financial statements for tax purposes, to show to the holders of the long-term notes that the company
issued to finance the purchase of some of its trucks, and to provide information to the shareholders.
Majestic Trucking Inc.
Balance Sheet
As of December 31, 2016
Assets
Liabilities and Shareholders' Equity
Cash
$ 77,340
Accounts payable
$ 42,220
Accounts receivable
81,500
Taxes payable
15,000
Prepaid insurance
18,000
Wages payable
10,000
Current assets
176,840
Customer deposits
27,000
Capital assets
465,000
Interest payable
11,900
Accumulated depreciation
(201,700)
Current liabilities
106,120
Long-term notes payable
140,000
Common shares
80,000
Retained earnings
114,020
$440,140
$440,140
It is now January 2018. Majestic needs to prepare its financial statements for the year ended December
31, 2017. You have obtained the following information about the fiscal year just ended:
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