The unadjusted trial balance of the Manufacturing Equitable at December 31, 2021, the end of its fiscal year, included the following account balances. Manufacturing's 2021 financial statements were issued on April 1, 2022. Accounts receivable $ Accounts payable 15% notes, payable to bank Mortgage note payable 90,000 46,600 654,000 1,253,000 Other information: a. The bank notes, issued August 1, 2021, are due on July 31, 2022, and pay interest at a rate of 15%, payable at maturity. b. The mortgage note is due on March 1, 2022. Interest at 14% has been paid up to December 31 (assume 14% is a realistic rate). Manufacturing intended at December 31, 2021, to refinance the note on its due date with a new 10-year mortgage note. In fact, on March 1, Manufacturing paid $252,000 in cash on the principal balance and refinanced the remaining $1,001,000. c. Included in the accounts receivable balance at December 31, 2021, were two subsidiary accounts that had been overpaid and had credit balances totaling $15,350. The accounts were of two major customers who were expected to order more merchandise from Manufacturing and apply the overpayments to those future purchases. d. On November 1, 2021, Manufacturing rented a portion of its factory to a tenant for $31,800 per year, payable in advance. The payment for the 12 months ended October 31, 2022, was received as required and was credited to rent revenue. Required: 1. Prepare any necessary adjusting journal entries at December 31, 2021, pertaining to each item of other information (a-d). 2. Prepare the current and long-term liability sections of the December 31, 2021, balance sheet. Complete this question by entering your answers in the tabs below. Required 1 Required 2
The unadjusted trial balance of the Manufacturing Equitable at December 31, 2021, the end of its fiscal year, included the following account balances. Manufacturing's 2021 financial statements were issued on April 1, 2022. Accounts receivable $ Accounts payable 15% notes, payable to bank Mortgage note payable 90,000 46,600 654,000 1,253,000 Other information: a. The bank notes, issued August 1, 2021, are due on July 31, 2022, and pay interest at a rate of 15%, payable at maturity. b. The mortgage note is due on March 1, 2022. Interest at 14% has been paid up to December 31 (assume 14% is a realistic rate). Manufacturing intended at December 31, 2021, to refinance the note on its due date with a new 10-year mortgage note. In fact, on March 1, Manufacturing paid $252,000 in cash on the principal balance and refinanced the remaining $1,001,000. c. Included in the accounts receivable balance at December 31, 2021, were two subsidiary accounts that had been overpaid and had credit balances totaling $15,350. The accounts were of two major customers who were expected to order more merchandise from Manufacturing and apply the overpayments to those future purchases. d. On November 1, 2021, Manufacturing rented a portion of its factory to a tenant for $31,800 per year, payable in advance. The payment for the 12 months ended October 31, 2022, was received as required and was credited to rent revenue. Required: 1. Prepare any necessary adjusting journal entries at December 31, 2021, pertaining to each item of other information (a-d). 2. Prepare the current and long-term liability sections of the December 31, 2021, balance sheet. Complete this question by entering your answers in the tabs below. Required 1 Required 2
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter8: Inventories: Special Valuation Issues
Section: Chapter Questions
Problem 18E: Errors During the course of your examination of the financial statements of Burnett Co., a new...
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The unadjusted trial balance of the Manufacturing Equitable at December 31, 2021,
the end of its fiscal year, included the following account balances. Manufacturing's
2021 financial statements were issued on April 1, 2022.
Accounts receivable
2$
Accounts payable
15% notes, payable to bank
Mortgage note payable
90,000
46,600
654,000
1,253,000
k
Other information:
a. The bank notes, issued August 1, 2021, are due on July 31, 2022, and pay interest
at a rate of 15%, payable at maturity.
b. The mortgage note is due on March 1, 2022. Interest at 14% has been paid up to
December 31 (assume 14% is a realistic rate). Manufacturing intended at December
31, 2021, to refinance the note on its due date with a new 1O-year mortgage note.
In fact, on March 1, Manufacturing paid $252,000 in cash on the principal balance
and refinanced the remaining $1,001,000.
c. Included in the accounts receivable balance at December 31, 2021, were two
subsidiary accounts that had been overpaid and had credit balances totaling
$15.350. The accounts were of two major customers who were expected to order
more merchandise from Manufacturing and apply the overpayments to those
nces
future purchases.
d. On November 1, 2021, Manufacturing rented a portion of its factory to a tenant for
$31,800 per year, payable in advance. The payment for the 12 months ended
October 31, 2022, was received as required and was credited to rent revenue.
Required:
1. Prepare any necessary adjusting journal entries at December 31, 2021, pertaining
to each item of other information (a-d).
2. Prepare the current and long-term liability sections of the December 31, 2021,
balance sheet.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
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The unadjusted trial balance of the Manufacturing Equitable at December 31, 2021,
the end of its fiscal year, included the following account balances. Manufacturing's
2021 financial statements were issued on April 1, 2022.
Accounts receivable
2$
Accounts payable
15% notes, payable to bank
Mortgage note payable
90,000
46,600
654,000
1,253,000
k
Other information:
a. The bank notes, issued August 1, 2021, are due on July 31, 2022, and pay interest
at a rate of 15%, payable at maturity.
b. The mortgage note is due on March 1, 2022. Interest at 14% has been paid up to
December 31 (assume 14% is a realistic rate). Manufacturing intended at December
31, 2021, to refinance the note on its due date with a new 1O-year mortgage note.
In fact, on March 1, Manufacturing paid $252,000 in cash on the principal balance
and refinanced the remaining $1,001,000.
c. Included in the accounts receivable balance at December 31, 2021, were two
subsidiary accounts that had been overpaid and had credit balances totaling
$15.350. The accounts were of two major customers who were expected to order
more merchandise from Manufacturing and apply the overpayments to those
nces
future purchases.
d. On November 1, 2021, Manufacturing rented a portion of its factory to a tenant for
$31,800 per year, payable in advance. The payment for the 12 months ended
October 31, 2022, was received as required and was credited to rent revenue.
Required:
1. Prepare any necessary adjusting journal entries at December 31, 2021, pertaining
to each item of other information (a-d).
2. Prepare the current and long-term liability sections of the December 31, 2021,
balance sheet.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
( Prev
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