Homework Help is Here – Start Your Trial Now!
Business
Accounting
The unadjusted trial balance of Pronghorn Ltd., a public company following IFRS, at December 31, 2023, is as follows: Cash Accounts receivable Allowance for doubtful accounts DVENT. Debit $10,750 58,300 Credit $745

The unadjusted trial balance of Pronghorn Ltd., a public company following IFRS, at December 31, 2023, is as follows: Cash Accounts receivable Allowance for doubtful accounts DVENT. Debit $10,750 58,300 Credit $745

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Topic Video
Question
Additional information: 1. 2. 8. 3. (a) 4. 9. 10. 5. 6. 7. 8. 9. On November 1, 2023, Pronghorn received $10,260 rent from its lessee for a 12-month lease beginning on that date. This was credited to Rent Revenue. 1. Pronghorn estimates that 6% of the final Accounts Receivable balance on December 31, 2023, will be uncollectible. On December 28, 2023, the bookkeeper incorrectly credited Sales Revenue for a receipt of $1,000 on account. This error had not yet been corrected on December 31. After a physical count, inventory on hand at December 31, 2023, was $80,000. Prepaid insurance contains the premium costs of two policies: Policy A, cost of $1,320, two-year term, taken out on April 1, 2023; Policy B, cost of $1,656, three-year term, taken out on September 1, 2023. 2. The regular rate of depreciation is 10% of cost per year. Acquisitions and retirements during a year are depreciated at half this rate. There were no retirements during the year. On December 31, 2022, the balance of Equipment was $89,500. On April 1, 2023, Pronghorn issued at par value 60 $1,000, 10% bonds maturing on April 1, 2024. Interest is paid on April 1 and October 1. On August 1, 2023, Pronghorn purchased at par value 18 $1,000, 10% Larkspur, Inc. bonds, maturing on July 31, 2025. Interest is paid on July 31 and January 31. On May 30, 2023, Pronghorn rented a warehouse for $1.030 per month and debited Prepaid Rent for an advance payment of $12.360. Pronghorn's FV-NI investments consist of shares with total market value of $9,280 as at December 31, 2023. Prepare the year-end adjusting and correcting entries for December 31, 2023, using the information given. Record the adjusting entry for inventory using a Cost of Goods Sold account. (List all debit entries before credit entries. 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 O for the amounts.) On May 30, 2023, Pronghorn rented a warehouse for $1,030 per month and debited Prepaid Rent for an advance payment of $12,360. Pronghorn's FV-NI investments consist of shares with total market value of $9,280 as at December 31, 2023. The FV-OCI investment is an investment of 470 shares in Yop Inc., with current market value of $20 per share as at December 31, 2023. No. Account Titles and Explanation Debit Credit
Transcribed Image Text:Additional information: 1. 2. 8. 3. (a) 4. 9. 10. 5. 6. 7. 8. 9. On November 1, 2023, Pronghorn received $10,260 rent from its lessee for a 12-month lease beginning on that date. This was credited to Rent Revenue. 1. Pronghorn estimates that 6% of the final Accounts Receivable balance on December 31, 2023, will be uncollectible. On December 28, 2023, the bookkeeper incorrectly credited Sales Revenue for a receipt of $1,000 on account. This error had not yet been corrected on December 31. After a physical count, inventory on hand at December 31, 2023, was $80,000. Prepaid insurance contains the premium costs of two policies: Policy A, cost of $1,320, two-year term, taken out on April 1, 2023; Policy B, cost of $1,656, three-year term, taken out on September 1, 2023. 2. The regular rate of depreciation is 10% of cost per year. Acquisitions and retirements during a year are depreciated at half this rate. There were no retirements during the year. On December 31, 2022, the balance of Equipment was $89,500. On April 1, 2023, Pronghorn issued at par value 60 $1,000, 10% bonds maturing on April 1, 2024. Interest is paid on April 1 and October 1. On August 1, 2023, Pronghorn purchased at par value 18 $1,000, 10% Larkspur, Inc. bonds, maturing on July 31, 2025. Interest is paid on July 31 and January 31. On May 30, 2023, Pronghorn rented a warehouse for $1.030 per month and debited Prepaid Rent for an advance payment of $12.360. Pronghorn's FV-NI investments consist of shares with total market value of $9,280 as at December 31, 2023. Prepare the year-end adjusting and correcting entries for December 31, 2023, using the information given. Record the adjusting entry for inventory using a Cost of Goods Sold account. (List all debit entries before credit entries. 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 O for the amounts.) On May 30, 2023, Pronghorn rented a warehouse for $1,030 per month and debited Prepaid Rent for an advance payment of $12,360. Pronghorn's FV-NI investments consist of shares with total market value of $9,280 as at December 31, 2023. The FV-OCI investment is an investment of 470 shares in Yop Inc., with current market value of $20 per share as at December 31, 2023. No. Account Titles and Explanation Debit Credit
The unadjusted trial balance of Pronghorn Ltd., a public company following IFRS, at December 31, 2023, is as follows: Cash Accounts receivable Allowance for doubtful accounts FV-NI investments Inventory Prepaid insurance Prepaid rent FV-OCI investments Bond investment at amortized cost Land Equipment Accumulated depreciation-enuinment Purchases Purchase discounts Freight out Freight in Salaries and wages expense Interest expense Debit $10,750 Miscellaneous expense 58,300 8,300 57,400 2,976 11,200 14,750 18,000 Accumulated depreciation-equipment Accounts payable Bonds payable Common shares Retained earnings Sales revenue Rent revenue 10,400 102,500 Credit $745 17600 168,500 8,550 3,450 27,000 5,400 805 17,600 8,200 60,000 101,100 86,676 220,900 10,260 2,800 $508,281 $508,281
Transcribed Image Text:The unadjusted trial balance of Pronghorn Ltd., a public company following IFRS, at December 31, 2023, is as follows: Cash Accounts receivable Allowance for doubtful accounts FV-NI investments Inventory Prepaid insurance Prepaid rent FV-OCI investments Bond investment at amortized cost Land Equipment Accumulated depreciation-enuinment Purchases Purchase discounts Freight out Freight in Salaries and wages expense Interest expense Debit $10,750 Miscellaneous expense 58,300 8,300 57,400 2,976 11,200 14,750 18,000 Accumulated depreciation-equipment Accounts payable Bonds payable Common shares Retained earnings Sales revenue Rent revenue 10,400 102,500 Credit $745 17600 168,500 8,550 3,450 27,000 5,400 805 17,600 8,200 60,000 101,100 86,676 220,900 10,260 2,800 $508,281 $508,281
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Depreciation Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS