Question Description Prepare the adjusting journal entries for the following situations and submit in an excel Spreadsheet. Please provide a brief explaining as to your response. Situation A At the end of Fiscal 2019, the accountants find an invoice for the purchase of a product that was shipped to a customer that was not fully recorded. The sale amount was $60,000 and the cost of the inventory was $30,000. The sale was recorded correctly. What is the adjusting entry for the cost of the transaction? Situation B In it now the end of the fiscal and the Bookkeeper noted that the water bill for the month of November 2019 was not received, hence the expense was not recorded. He called the city of Ottawa and after speaking with an associate, he was informed that the amount owing was approximately $600. What is the adjusting entry for this invoice? Situation C As the accountant of Safety Works, management have informed you (the Accountant) that the following estimates will be used for following information: Fixed Assets Cost Useful Life Salvage value Machines $40,000 10 years $5,000 Tools $ 5,000 5 years $500

Question Description Prepare the adjusting journal entries for the following situations and submit in an excel Spreadsheet. Please provide a brief explaining as to your response. Situation A At the end of Fiscal 2019, the accountants find an invoice for the purchase of a product that was shipped to a customer that was not fully recorded. The sale amount was $60,000 and the cost of the inventory was $30,000. The sale was recorded correctly. What is the adjusting entry for the cost of the transaction? Situation B In it now the end of the fiscal and the Bookkeeper noted that the water bill for the month of November 2019 was not received, hence the expense was not recorded. He called the city of Ottawa and after speaking with an associate, he was informed that the amount owing was approximately $600. What is the adjusting entry for this invoice? Situation C As the accountant of Safety Works, management have informed you (the Accountant) that the following estimates will be used for following information: Fixed Assets Cost Useful Life Salvage value Machines $40,000 10 years $5,000 Tools $ 5,000 5 years $500

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter6: Accounting For Merchandising Businesses

Section: Chapter Questions

Problem 9PB: On June 30, 2019, the balances of the accounts appearing in the ledger of Simkins Company are as...

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On June 30, 2019, the balances of the accounts appearing in the ledger of Simkins Company are as follows: Instructions 1. Does Simkins Company use a periodic or perpetual inventory system? Explain. 2. Prepare a multiple-step income statement for Simkins Company for the year ended June 30, 2019. The merchandise inventory as of June 30, 2019, was 508,000. The adjustment for estimated returns inventory for sales for the year ending December 31, 2019, was 33,000. 3. Prepare the closing entries for Simkins Company as of June 30, 2019. 4. What would the net income have been if the perpetual inventory system had been used?
On December 31, 2019, the balances of the accounts appearing in the ledger of Wyman Company are as follows: Instructions 1. Does Wyman Company use a periodic or perpetual inventory system? Explain. 2. Prepare a multiple-step income statement for Wyman Company for the year ended December 31, 2019. The merchandise inventory as of December 31, 2019, was 305,000. The adjustment for estimated returns inventory for sales for the year ending December 31, 2019, was 30,000. 3. Prepare the closing entries for Wyman Company as of December 31, 2019. 4. What would the net income have been if the perpetual inventory system had been used?
Grimstad Company uses FIFO for internal reporting purposes and LIFO for financial reporting and income tax purposes. At the end of 2019, the following information was obtained from the inventory records: Required: 1. Prepare the necessary adjusting journal entry assuming that Grimstad converts the accounts to LIFO at the end of 2019. 2. Indicate how Grimstad would disclose the inventory value on its comparative balance sheets prepared at the end of 2019. 3. Next Level By how much would Grimstads cost of goods sold differ in 2019 if it used FIFO for external reporting?
On December 5, 2019, Super Circuit Store sold gift certificates totalling $12,000. By December 31, 2019, all but $2,125 worth of these certificates had been redeemed for merchandise. Outstanding certificates were then redeemed by January 15, 2020. Required: 1. Prepare journal entries on Super Circuit’s books to reflect the preceding transactions. 2. How would the gift certificates be reported on Super Circuit’s balance sheet on December 31, 2019?
In November 2019, Yammy Fun Inc. purchased advertising for $1,000 that ran in the local November newspaper. All purchases and services are made on credit. The bookkeeper, PatrickFitz, recorded the advertising by crediting Supplies Inventory (asset) and debiting accounts payable. In 2020 (the following year), the new bookkeeper, Tua, saw this entry and asked you to help him analyze the entry. What is the correcting entry for 2020? Debit Supplies Inventory and credit Advertising Expense for 1,000.Debit Supplies Inventory and credit Retained Earnings for 1,000Debit Retained Earnings for 1,000 and credit Accounts Payable for 1,000.Debit Advertising Expense for 1,000, debit Supplies Inventory for 1,000, and credit Accounts Payable for2,000Debit Retained Earnings for 1,000, debit Supplies Inventory for 1,000, and credit Accounts Payable for2,000
Please solve this question Financial data for Safety Hire as of 30 June 2019 are: Data Prepare an income statement for the month of June and a balance sheet in account format for Safety Hire as at 30 June 2019. Data available in the image thnkx
Prepare the January 1, 2020 opening trial balance. Prepare the journal entries for the first six months of 2020. The owners would like to know the current (as of 6/30/20) cash and inventory They would like you to provide a “T” account showing the activity in each account.
Record in journal form the following transaction: Bought goods on credit for $4,500 from Andrew 23 December 2019, terms 10/10, n/30. Paid for them 31 December 2019.
What are the adjusting entries?
At December 31, 2020, Grouper Company has outstanding noncancelable purchase commitments for 39.500 gallons, at $4.02 per gallon, of raw material to be used in its manufacturing process. The company prices its raw material inventory at cost or market, whichever is lower. Your answer is partially correct. Assuming that the market price as of December 31, 2020, is $3.62, record the journal entry. (Credit account titles are automatically Indented when amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles and enter 0 for the amounts. Round answers to O decimal places, eg. 6,225) Date Account Titles and Explanation Credit Estimated Liability on Purchase Cont