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The unadjusted trial balance of the Manufacturing Equitable at December 31, 2024, the end of its fiscal year, included the following account balances. Manufacturing's 2024 financial statements were issued on April 1, 2025. Accounts receivable Accounts payable 10% notes, payable to bank Mortgage note payable $ 92,500 35,000 600,000 1,200,000 Other information: a. The bank notes, issued August 1, 2024, are due on July 31, 2025, and pay interest at a rate of 10%, payable at maturity. b. The mortgage note is due on March 1, 2025. Interest at 9% has been paid up to December 31 (assume 9% is a realistic rate). Manufacturing intended at December 31, 2024, to refinance the note on its due date with a new 10-year mortgage note. In fact, on March 1, Manufacturing paid $250,000 in cash on the principal balance and refinanced the remaining $950,000. c. Included in the accounts receivable balance at December 31, 2024, were two subsidiary accounts that had been overpaid and had credit balances totaling $18,000. 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, 2024, Manufacturing rented a portion of its factory to a tenant for $30,000 per year, payable in advance. The payment for the 12 months ended October 31, 2025, was received as required and was credited to deferred revenue. Required: 1. Prepare any necessary adjusting journal entries at December 31, 2024, pertaining to each item of other information (a-d). 2. Prepare the current and long-term liability sections of the December 31, 2024, balance sheet.

The unadjusted trial balance of the Manufacturing Equitable at December 31, 2024, the end of its fiscal year, included the following account balances. Manufacturing's 2024 financial statements were issued on April 1, 2025. Accounts receivable Accounts payable 10% notes, payable to bank Mortgage note payable $ 92,500 35,000 600,000 1,200,000 Other information: a. The bank notes, issued August 1, 2024, are due on July 31, 2025, and pay interest at a rate of 10%, payable at maturity. b. The mortgage note is due on March 1, 2025. Interest at 9% has been paid up to December 31 (assume 9% is a realistic rate). Manufacturing intended at December 31, 2024, to refinance the note on its due date with a new 10-year mortgage note. In fact, on March 1, Manufacturing paid $250,000 in cash on the principal balance and refinanced the remaining $950,000. c. Included in the accounts receivable balance at December 31, 2024, were two subsidiary accounts that had been overpaid and had credit balances totaling $18,000. 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, 2024, Manufacturing rented a portion of its factory to a tenant for $30,000 per year, payable in advance. The payment for the 12 months ended October 31, 2025, was received as required and was credited to deferred revenue. Required: 1. Prepare any necessary adjusting journal entries at December 31, 2024, pertaining to each item of other information (a-d). 2. Prepare the current and long-term liability sections of the December 31, 2024, balance sheet.

Intermediate Accounting: Reporting And Analysis
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
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 12E: Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120...
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Prepare any necessary adjusting journal entries at December 31, 2024, pertaining to each item of other information (a-d). Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 2 3 4 The Bank notes, issued August 1, 2024, are due on July 31, 2025, and pay interest at a rate of 10%, payable at maturity. Note: Enter debits before credits. Transaction a Record entry Show Transcribed Text General Journal Required 1 Required 2 Current liabilities: Clear entry Total current liabilities Long-term liabilities: Prepare the current and long-term liability sections of the December 31, 2024, balance sheet. Manufacturing Equitable Balance Sheet (partial) At December 31, 2024 Debit Total Long-term Liabilities Total Liabilities Credit View general journal
Transcribed Image Text:Prepare any necessary adjusting journal entries at December 31, 2024, pertaining to each item of other information (a-d). Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 2 3 4 The Bank notes, issued August 1, 2024, are due on July 31, 2025, and pay interest at a rate of 10%, payable at maturity. Note: Enter debits before credits. Transaction a Record entry Show Transcribed Text General Journal Required 1 Required 2 Current liabilities: Clear entry Total current liabilities Long-term liabilities: Prepare the current and long-term liability sections of the December 31, 2024, balance sheet. Manufacturing Equitable Balance Sheet (partial) At December 31, 2024 Debit Total Long-term Liabilities Total Liabilities Credit View general journal
The unadjusted trial balance of the Manufacturing Equitable at December 31, 2024, the end of its fiscal year, included the following account balances. Manufacturing's 2024 financial statements were issued on April 1, 2025. Accounts receivable Accounts payable 10% notes, payable to bank Mortgage note payable $ 92,500 35,000 600,000 1,200,000 Other information: a. The bank notes, issued August 1, 2024, are due on July 31, 2025, and pay interest at a rate of 10%, payable at maturity. b. The mortgage note is due on March 1, 2025. Interest at 9% has been paid up to December 31 (assume 9% is a realistic rate). Manufacturing intended at December 31, 2024, to refinance the note on its due date with a new 10-year mortgage note. In fact, on March 1, Manufacturing paid $250,000 in cash on the principal balance and refinanced the remaining $950,000. c. Included in the accounts receivable balance at December 31, 2024, were two subsidiary accounts that had been overpaid and had credit balances totaling $18,000. 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, 2024, Manufacturing rented a portion of its factory to a tenant for $30,000 per year, payable in advance. The payment for the 12 months ended October 31, 2025, was received as required and was credited to deferred revenue. Required: 1. Prepare any necessary adjusting journal entries at December 31, 2024, pertaining to each item of other information (a-d). 2. Prepare the current and long-term liability sections of the December 31, 2024, balance sheet.
Transcribed Image Text:The unadjusted trial balance of the Manufacturing Equitable at December 31, 2024, the end of its fiscal year, included the following account balances. Manufacturing's 2024 financial statements were issued on April 1, 2025. Accounts receivable Accounts payable 10% notes, payable to bank Mortgage note payable $ 92,500 35,000 600,000 1,200,000 Other information: a. The bank notes, issued August 1, 2024, are due on July 31, 2025, and pay interest at a rate of 10%, payable at maturity. b. The mortgage note is due on March 1, 2025. Interest at 9% has been paid up to December 31 (assume 9% is a realistic rate). Manufacturing intended at December 31, 2024, to refinance the note on its due date with a new 10-year mortgage note. In fact, on March 1, Manufacturing paid $250,000 in cash on the principal balance and refinanced the remaining $950,000. c. Included in the accounts receivable balance at December 31, 2024, were two subsidiary accounts that had been overpaid and had credit balances totaling $18,000. 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, 2024, Manufacturing rented a portion of its factory to a tenant for $30,000 per year, payable in advance. The payment for the 12 months ended October 31, 2025, was received as required and was credited to deferred revenue. Required: 1. Prepare any necessary adjusting journal entries at December 31, 2024, pertaining to each item of other information (a-d). 2. Prepare the current and long-term liability sections of the December 31, 2024, balance sheet.
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