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The company from last week has prepared all of the necessary entries and now has a trial balance that balances. Before the final year-end financial statements are prepared, adjusting entries are needed. The following information is available regarding adjusting entries: Assume a December 31 year-end 1. The company estimates that 5% of accounts receivable will become uncollectible. 2. A count of the supplies shows that only $200 of supplies remains as of the end of the year. 3. The company purchased the insurance policy on April 1. It was a two-year policy. 4. The company estimates that the equipment purchased on January 1 will last ten years The company uses straight line depreciation with no estimated salvage

The company from last week has prepared all of the necessary entries and now has a trial balance that balances. Before the final year-end financial statements are prepared, adjusting entries are needed. The following information is available regarding adjusting entries: Assume a December 31 year-end 1. The company estimates that 5% of accounts receivable will become uncollectible. 2. A count of the supplies shows that only $200 of supplies remains as of the end of the year. 3. The company purchased the insurance policy on April 1. It was a two-year policy. 4. The company estimates that the equipment purchased on January 1 will last ten years The company uses straight line depreciation with no estimated salvage

FINANCIAL ACCOUNTING
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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I need help with:

·      Entering adjustments on the spreadsheet provided.

·      Using the new and adjusted totals, calculate the totals on the financial statements in the spaces provided.

Prepaid Accum Int Common Cost of Goods Cash A/R AFDA Inv Payable Supplies Insurance Equipment Depreciation 1,000 A/P N/P Stock Revenue Sold Expenses 5,000 Pre-Adjustment Balances Adjust A/R Adjust Supplies Adjust Insurance Adjust Depreciation Adjust Interest 264,000 65,000 20,000 6,000 40,000 21,000 30,000 300,000 120,000 70,000 Totals 264,000 65,000 20,000 1,000 6,000 40,000 21,000 30,000 300,000 120,000 70,000 5,000 Revenue Expenses Net Income Total Assets Total Liabilities Common Stock Ending Retained Earnings Total Equity Balance Sheet Balances YES
Transcribed Image Text:Prepaid Accum Int Common Cost of Goods Cash A/R AFDA Inv Payable Supplies Insurance Equipment Depreciation 1,000 A/P N/P Stock Revenue Sold Expenses 5,000 Pre-Adjustment Balances Adjust A/R Adjust Supplies Adjust Insurance Adjust Depreciation Adjust Interest 264,000 65,000 20,000 6,000 40,000 21,000 30,000 300,000 120,000 70,000 Totals 264,000 65,000 20,000 1,000 6,000 40,000 21,000 30,000 300,000 120,000 70,000 5,000 Revenue Expenses Net Income Total Assets Total Liabilities Common Stock Ending Retained Earnings Total Equity Balance Sheet Balances YES
The company from last week has prepared all of the necessary entries and now has a trial balance that balances. Before the final year-end financial statements are prepared, adjusting entries are needed. The following information is available regarding adjusting entries: Assume a December 31 year-end 1. The company estimates that 5% of accounts receivable will become uncollectible. 2. A count of the supplies shows that only $200 of supplies remains as of the end of the year. 3. The company purchased the insurance policy on April 1. It was a two-year policy. 4. The company estimates that the equipment purchased on January 1 will last ten years. The company uses straight line depreciation with no estimated salvage value. 5. The company borrowed the note payable on July 1 with an interest rate of 6%. No payments have been made. Required Enter the adjustments on the spreadsheet provided. Using the new and adjusted totals, calculate the totals on the financial statements in the spaces provided.
Transcribed Image Text:The company from last week has prepared all of the necessary entries and now has a trial balance that balances. Before the final year-end financial statements are prepared, adjusting entries are needed. The following information is available regarding adjusting entries: Assume a December 31 year-end 1. The company estimates that 5% of accounts receivable will become uncollectible. 2. A count of the supplies shows that only $200 of supplies remains as of the end of the year. 3. The company purchased the insurance policy on April 1. It was a two-year policy. 4. The company estimates that the equipment purchased on January 1 will last ten years. The company uses straight line depreciation with no estimated salvage value. 5. The company borrowed the note payable on July 1 with an interest rate of 6%. No payments have been made. Required Enter the adjustments on the spreadsheet provided. Using the new and adjusted totals, calculate the totals on the financial statements in the spaces provided.
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