total liabilities and stockholders equity Adjusting Entries 1. An inventory of supplies showed $4,300 were used up.
total liabilities and stockholders equity Adjusting Entries 1. An inventory of supplies showed $4,300 were used up.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![total liabilities and stockholders equity
Adjusting Entries
1. An inventory of supplies showed $4,300 were used up.
2. The furniture was purchased for $45,000. It has $5,000 salvage value and a 5 year useful life.
One year of depreciation must be recorded.
3. $3,000 of insurance was purchased for 12 months. $1,200 of insurance was used.
4. Performed $32,000 of services that was paid for in advance
5. On last day of the month, performed $8,000 of services for new customer and will be paid
next month
6. Happy cleaners provided $3,100 of cleaning services on the last day of the month. This waas a
special yearly clean. They will be paid next month.
7. An inventory count revealed there was $4,500 of inventory shrinkage. This was a larger than
usual amount of shrinkage.
8. The company estimates bad debt expense to be 2% of credit sales. Assume all sales are made
on credit.
9. A company with net assets of $600,000 was purchased for $700,000 one year ago. The
current fair value of the company is 685,000. Perform a goodwill impairment test and record an
impairment entry if one is needed.
10. The company had a calculated warranty expense of $7,000
Account Title
Cash
Inventory
Accounts Receivable
Office Supplies
Prepaid Insurance
Furniture
Land
Goodwill
Accounts Payable
Utilities Payable
Unearned Revenue
Common Stock
Dividends
Service Revenue
Cost of goods sold
Salaries Expense
Rent Expense
Utilities Expense
Total
ANN SIMPSON, DESIGNER
Unadjusted Trial Balance
November 30, 2018
Balance
Debit
$23,400
$60,000
22,000
5,000
3,000
20,000
24,000
40,000
4,000
Credit
$19,900
600
38,000
100,000
76,900
25,000
6,000
2,000
1,000
$ 235,400 $235,400](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5f07a2d3-1a4c-44eb-ab08-cc9c573acde5%2F2239eecb-59fc-444c-b1a6-e94242224336%2Fidn8u69_processed.jpeg&w=3840&q=75)
Transcribed Image Text:total liabilities and stockholders equity
Adjusting Entries
1. An inventory of supplies showed $4,300 were used up.
2. The furniture was purchased for $45,000. It has $5,000 salvage value and a 5 year useful life.
One year of depreciation must be recorded.
3. $3,000 of insurance was purchased for 12 months. $1,200 of insurance was used.
4. Performed $32,000 of services that was paid for in advance
5. On last day of the month, performed $8,000 of services for new customer and will be paid
next month
6. Happy cleaners provided $3,100 of cleaning services on the last day of the month. This waas a
special yearly clean. They will be paid next month.
7. An inventory count revealed there was $4,500 of inventory shrinkage. This was a larger than
usual amount of shrinkage.
8. The company estimates bad debt expense to be 2% of credit sales. Assume all sales are made
on credit.
9. A company with net assets of $600,000 was purchased for $700,000 one year ago. The
current fair value of the company is 685,000. Perform a goodwill impairment test and record an
impairment entry if one is needed.
10. The company had a calculated warranty expense of $7,000
Account Title
Cash
Inventory
Accounts Receivable
Office Supplies
Prepaid Insurance
Furniture
Land
Goodwill
Accounts Payable
Utilities Payable
Unearned Revenue
Common Stock
Dividends
Service Revenue
Cost of goods sold
Salaries Expense
Rent Expense
Utilities Expense
Total
ANN SIMPSON, DESIGNER
Unadjusted Trial Balance
November 30, 2018
Balance
Debit
$23,400
$60,000
22,000
5,000
3,000
20,000
24,000
40,000
4,000
Credit
$19,900
600
38,000
100,000
76,900
25,000
6,000
2,000
1,000
$ 235,400 $235,400
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