Prepare the necessary adjusting entries for Digital Controls at the end of December 31, 2024, fiscal year-end for each of the following situations. No adjusting entries were recorded during the year. On March 31, 2024, the company lent $50,000 to another company. A note was signed with principal and interest at 6% payable on March 31, 2025. On September 30, 2024, the company paid its landlord $12,000 representing rent for the period September 30, 2024, to September 30, 2025. Digital Controls debited prepaid rent at the time the rent was paid. Supplies on hand at the end of 2023 (previous year) totaled $3,000. Additional supplies costing $5,000 were purchased during 2024 and debited to the supplies account. At the end of 2024, supplies costing $4,200 remain on hand. Vacation pays of $6,000 for the year that had been earned by employees were not paid or recorded. The company records vacation pays as salaries expense.

Prepare the necessary adjusting entries for Digital Controls at the end of December 31, 2024, fiscal year-end for each of the following situations. No adjusting entries were recorded during the year. On March 31, 2024, the company lent $50,000 to another company. A note was signed with principal and interest at 6% payable on March 31, 2025. On September 30, 2024, the company paid its landlord $12,000 representing rent for the period September 30, 2024, to September 30, 2025. Digital Controls debited prepaid rent at the time the rent was paid. Supplies on hand at the end of 2023 (previous year) totaled $3,000. Additional supplies costing $5,000 were purchased during 2024 and debited to the supplies account. At the end of 2024, supplies costing $4,200 remain on hand. Vacation pays of $6,000 for the year that had been earned by employees were not paid or recorded. The company records vacation pays as salaries expense.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

1. Lovely Corporation's current liabilities at December 31, 2013 totalled P1,500,000 before any necessary year-end adjustment relating to the following transactions: On December 23, 2013, a vendor authorized Lovely to return for full credit, merchandise shipped and billed at P45,000 on December 09, 2013. Lovely shipped the returned items on December 29, 2013. A P45,000 credit memo was received and recorded by Lovely on January 02, 2014. During December 2013, Lovely received P75,000 from Pretty, a customer, as an advance payment for a handicraft that Lovely will make to Pretty's specifications. From this transaction, Lovely has a P75,000 credit balance in its accounts receivable from Pretty at December 31, 20oio. What amount should Lovely report as total current liabilities in its December 31, 2013 balance sheet? a. P1,455,000 b. P1,470,000 C. P1,530,000 d. P1,575,000
Brooks Inc. issued a $220,000, six-month, 6% note to purchase equipment on August 1, 2022. Brooks Inc's fiscal year end is September 30. The journal entry to record unpaid, accrued interest as of September 30, 2022 is: Interest expense 6,600 Interest payable 6,600 Interest expense 13,200 Interest payable 13,200 Interest expense 2,200 Interest payable 2,200
LARA Company secured a bank loan of $ 90,000, on 1/4/2020. In return, it signed a 10 month, 6%, note payable. LARA Co. closes its accounts annually, on December 31 of every year. The loan and total interest are to be paid to the bank at the end of the loan term. Required: the adjusting entry on December 31, 2020, will show a credit to interest payable for.
On October 1, Dutta Incorporated borrowed $82 million and issued a nine-month promissory note. Interest was discounted at issuance at a 13% discount rate. Prepare the journal entry for the issuance of the note and the appropriate adjusting entry for the note at December 31, the end of the reporting period. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.
Wolfpack Inc.’s trial balance indicates the following select account balances at the end of 2022 before the year-end adjustment to record bad debts: Account Debit Credit Account Receivable 700000 Allowance of Doubtful Accounts 8000 Sales Revenue 9000000 A) At the end of 2022, Wolfpack’s management estimates that 3% of its ending gross Accounts Receivable account balance will be uncollectible. How do you prepare the 12/31/22 journal entry to record bad debts expense for 2022? What is the Net Realizable Value? B) Assume that on February 4 of the following year, Wolfpack specifically writes off the receivable balance for one of its customers. The customer owes Wolfpack $4,000. Prepare the specific write-off journal entry to record this uncollectible account.
On September 1, 2021, Allied Moving Corp. borrows $110,000 cash from First National Bank. Allied signs a six-month, 5% note payable. Interest is payable at maturity. Allied's year-end is December 31. 1., 2. & 3. Record the following transactions for the note payable by Allied Moving Corp. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your answers to nearest dollar amount.) View transaction list Journal entry worksheet < 1. 2 Record the issuance of notes payable. Date Sep 01, 2021 3 Note: Enter debits before credits. Record entry General Journal Clear entry Debit Credit View general jour
A company's accounts payable dated December 31, 2021, totaled P1.000,000 before any necessary year end adjustments relating to the following transactions and information: • On December 27, 2021. the company wrote and issued checks to creditors totaling P350.000. The issuance of the checks was recorded on January 3, 2022. • On December 28. 2021, the company purchased and received goods for P150.000, terms 2/10. n/30. The company records purchases and accounts payable at net amounts. The invoice was recorded and paid on January 3. 2022 • Goods shipped FOB Destination on December 20, 2021. from a vendor to the company were received on January 2. 2022. The invoice cost was P65,000. The purchase was recorded on January 2, 2022. • Goods costing P120.000 were purchased from supplier with terms FOB shipping point on December 28, 2021. The company received the goods and the invoice on January 4, 2022. • The P1.000,000 ledger balance of accounts payable is net of P80.000 debit balance in one…
Splish Corporation borrowed $58,500 on November 1, 2020, by signing a $60,000, 3-month, zero-interest-bearing note. Prepare Splish's November 1, 2020, entry; the December 31, 2020, annual adjusting entry; and the February 1, 2021, entry. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record interest) (To pay note)
Cool Corporation’s accounts payable at December 31, 2020 amounted to P5,400,000 before any necessary year-end adjustmentsrelating to the following transactions:➢ On December 28, 2020, Cool wrote and recorded checks to creditors totaling P2,000,000 causing an overdraft of P500,000 inCool’s bank account at December 31, 2020. The checks were mailed on January 11, 2021.➢ On December 29, 2020, Cool purchased and received goods for P750,000, terms 2/10, n/30. Cool records purchasesusing the net method. The invoice was recorded and paid on January 5, 2021.➢ Goods shipped FOB destination on December 21, 2020 from a vendor to Cool was received on January 3, 2021. The invoicecost was P325,000.At December 31, 2020, what amount should Cool report as total accounts payable?
Clark's Chemical Company received customer deposits on returnable containers in the amount of OMR 17,000 during 2019. Deposits are forfeited if containers are not returned within 12 months. Containers at January 1, 2019, represent deposit of OMR 4,000. In 2019, OMR 15,000 was refunded and deposits forfeited were OMR 2,000. The liability for refundable deposits to be reported on the December 31, 2019 would be: Select one: A. 4,000 B. 2,000 C. 9,000 D. 11,000
Spring Garden Flowers had the following balances at December 31, 2024, before the year-end adjustments: E (Click the icon to view the balances.) The aging of accounts receivable yields the following data: E (Click the icon to view the accounts receivable aging schedule.) Requirements Journalize Spring's entry to record bad debts expense for 2024 using the aging-of-receivables method. 1. 2. Prepare a T-account to compute the ending balance of Allowance for Bad Debts. Requirement 1. Journalize Spring's entry to record bad debts expense for 2024 using the aging-of-receivables method. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts Debit Credit Dec. 31 Data Table Accounts Receivable Allowance for Bad Debts 66,000 1,615 Requirement 2. Prepare a T-account to compute the ending balance of Allowance for Bad Debts. Allowance for Bad Debts Print Done Data Table Age of Accounts Receivable 0-60 Days Over 60 Days Total…
johnson company calculates its allowance for uncollectible accounts as 10% of its ending balance in gross accounts receivable. The allowance for uncollectable accounts had a credit balance of $12000 at the begining of 2024. no previously written off accounts recievable were reinstated during 2024. at 12/31/2024, gross accounts recievable totaled $200,100, and prior to recording the adjusting entry to recognize bad debt expenses for 2024, the allowance for uncollectable accounts had a debit balance of $22000. required 1. what was the balance in gross accounts recievable as of 12/31/2023? 2. what journal entry should johnson record to recognize bad debt expense for 2024? 3. assume johnson made no other adjustments of the allowance for uncollectable accounts during 2024. Determine the amount of accounts recievable written off during 2024. 4. if johnson instead used the direct write off method, what would bad debt expense be for 2024?