The Outdoors Corporation, which sells camping and hiking equipment, had the following adjusted account balances on December 31, 2021. During 2021 the Outdoor Corporation sold its river tubing component of the business, the River Rafts Company. The Outdoors Corporation correctly accounted for the sale as a discontinued operation. Account Debit Credit $ 13,700 Accounts payable Accounts receivable Accumulated depreciation – equipment $ 43,000 30,500 87,000 Additional paid-in capital – common stock Advertising expense Allowance for doubtful accounts Bad debt expense 13,000 3,000 1,500 Cash 24,600 Common stock, $5 par Cost of goods sold Depreciation expense (60% selling, 40% administrative) Dividends 65,000 384,000 14,000 4,500 Dividend revenue 1,000 Equipment Held-to-maturity debt securities, due 5/31/24 Income tax expense Income tax payable Interest expense 143,600 38,000 ?? ?? 4,000 Interest revenue 2,300 Inventory Land held for future use Loss on sale of equipment Marketable equity securities Miscellaneous expense (70% selling, 30% administrative) Note payable – due May 31, 2027 Prepaid insurance Rent expense (80% selling, 20% administrative) Retained earnings, 1/1/21 Salaries expense (20% selling, 80% administrative) Sales revenue Sales commission expense 52,900 135,100 5,800 22,700 29,000 73,700 1,900 174,000 93,900 205,000 1,127,000 168,000 Sales returns and allowances 32,500 Trading debt securities Treasury stock Unearned sales revenue 22,000 9,000 3,000
The Outdoors Corporation, which sells camping and hiking equipment, had the following adjusted account balances on December 31, 2021. During 2021 the Outdoor Corporation sold its river tubing component of the business, the River Rafts Company. The Outdoors Corporation correctly accounted for the sale as a discontinued operation. Account Debit Credit $ 13,700 Accounts payable Accounts receivable Accumulated depreciation – equipment $ 43,000 30,500 87,000 Additional paid-in capital – common stock Advertising expense Allowance for doubtful accounts Bad debt expense 13,000 3,000 1,500 Cash 24,600 Common stock, $5 par Cost of goods sold Depreciation expense (60% selling, 40% administrative) Dividends 65,000 384,000 14,000 4,500 Dividend revenue 1,000 Equipment Held-to-maturity debt securities, due 5/31/24 Income tax expense Income tax payable Interest expense 143,600 38,000 ?? ?? 4,000 Interest revenue 2,300 Inventory Land held for future use Loss on sale of equipment Marketable equity securities Miscellaneous expense (70% selling, 30% administrative) Note payable – due May 31, 2027 Prepaid insurance Rent expense (80% selling, 20% administrative) Retained earnings, 1/1/21 Salaries expense (20% selling, 80% administrative) Sales revenue Sales commission expense 52,900 135,100 5,800 22,700 29,000 73,700 1,900 174,000 93,900 205,000 1,127,000 168,000 Sales returns and allowances 32,500 Trading debt securities Treasury stock Unearned sales revenue 22,000 9,000 3,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 21P
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