The following trial balance before adjustments is for Cullumber Ltd. on December 31, 2024: Cash Inventory Advances to employees Supplies Equipment Accumulated depreciation, equipment Deferred revenue Bank loan payable Common shares Retained earnings Sales revenue Cost of goods sold Wages expense Repairs and maintenance expense Rent expense Miscellaneous expense Dividends declared Totals Data for adjusting entries: Debits $8,400 17,740 1,680 2,520 56,000 109,200 28,560 21,000 5,500 12,600 3,400 $266,600 Credits $4,000 5,040 16,800 40,000 7,560 193,200 $266,600 1. As at December 31, 2024, 80% of the wages that had been paid in advance to the salespeople had been earned. 2. A count of the supplies at year end revealed that $600 of supplies were still on hand. 3. Depreciation on the equipment for 2024 was $1,000. 4. The deferred revenue was advance receipts for future deliveries of goods. By December 31, 2024, two-thirds of these deliveries
The following trial balance before adjustments is for Cullumber Ltd. on December 31, 2024: Cash Inventory Advances to employees Supplies Equipment Accumulated depreciation, equipment Deferred revenue Bank loan payable Common shares Retained earnings Sales revenue Cost of goods sold Wages expense Repairs and maintenance expense Rent expense Miscellaneous expense Dividends declared Totals Data for adjusting entries: Debits $8,400 17,740 1,680 2,520 56,000 109,200 28,560 21,000 5,500 12,600 3,400 $266,600 Credits $4,000 5,040 16,800 40,000 7,560 193,200 $266,600 1. As at December 31, 2024, 80% of the wages that had been paid in advance to the salespeople had been earned. 2. A count of the supplies at year end revealed that $600 of supplies were still on hand. 3. Depreciation on the equipment for 2024 was $1,000. 4. The deferred revenue was advance receipts for future deliveries of goods. By December 31, 2024, two-thirds of these deliveries
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:4. The deferred revenue was advance receipts for future deliveries of goods. By December 31, 2024, two-thirds of these deliveries
had been made.
5. The bank loan was a six-month loan taken out on October 1, 2024. The interest rate on the loan is 8%, but the interest is not due
to be paid until the note is repaid on April 1, 2025.
6.
Wages owed at year end and not yet recorded were $500.
7. The rent expense figure includes $500 paid in advance for January 2025.
8.
Income tax for the year should be calculated using a tax rate of 25%. (Hint: After you finish the other adjusting entries,
determine the income before income tax and then calculate the tax as 25% of this amount.)
Prepare the adjusting entries for the year 2024. (List all debit entries before credit entries. Credit account titles are automatically indented
when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.
Round answers to the nearest whole dollar, e.g. 5,275.)
No. Account Titles and Explanation
1
2.
3.
4.
5.
6.
7.
8.
Debit
Credit
Transcribed Image Text:The following trial balance before adjustments is for Cullumber Ltd. on December 31, 2024:
Cash
Inventory
Advances to employees
Supplies
Equipment
Accumulated depreciation, equipment
Deferred revenue
Bank loan payable
Common shares
Retained earnings
Sales revenue
Cost of goods sold
Wages expense
Repairs and maintenance expense
Rent expense
Miscellaneous expense
Dividends declared
Totals
Data for adjusting entries:
Debits
$8,400
17,740
1,680
2.520
56,000
109,200
28,560
21,000
5,500
12,600
3,400
$266,600
Credits
$4,000
5,040
16,800
40,000
7,560
193,200
$266,600
1. As at December 31, 2024, 80% of the wages that had been paid in advance to the salespeople had been earned.
2. A count of the supplies at year end revealed that $600 of supplies were still on hand.
3.
Depreciation on the equipment for 2024 was $1,000.
4. The deferred revenue was advance receipts for future deliveries of goods. By December 31, 2024, two-thirds of these deliveries
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