
Financial and Managerial Accounting - CengageNow
15th Edition
ISBN: 9781337911979
Author: WARREN
Publisher: CENGAGE L
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 10, Problem 1COMP
1.
To determine
Record journal entries.
1.
Expert Solution

Explanation of Solution
The following are the journal entries.
20Y5 | Particulars | Debit ($) | Credit ($) | |
January | 3 | Petty Cash | 4,500 | |
Cash | 4,500 | |||
February | 26 | Office Supplies | 1,680 | |
Miscellaneous Selling Expense | 570 | |||
Miscellaneous Administrative Expense | 880 | |||
Cash | 3,130 | |||
April | 14 | Inventory | 31,300 | |
Accounts Payable | 31,300 | |||
May | 13 | Accounts Payable | 31,300 | |
Cash | 31,300 | |||
17 | Cash | 21,200 | ||
Cash Short and Over | 40 | |||
Sales | 21,240 | |||
June | 2 | Notes Receivable | 180,000 | |
Accounts Receivable | 180,000 | |||
August | 1 | Cash | 182,400 | |
Notes Receivable | 180,000 | |||
Interest Revenue | 2,400 | |||
24 | Cash | 7,600 | ||
Allowance for Doubtful Accounts | 1,400 | |||
Accounts Receivable | 9,000 | |||
September | 15 | Accounts Receivable | 1,400 | |
Allowance for Doubtful Accounts | 1,400 | |||
15 | Cash | 1,400 | ||
Accounts Receivable | 1,400 | |||
September | 15 | Land | 654,925 | |
Interest Expense | 15,075 | |||
Notes Payable | 670,000 | |||
October | 17 | Cash | 135,000 | |
Notes Receivable | 100,000 | |||
64,000 | ||||
Loss on Sale of Office Equipment | 21,000 | |||
Office Equipment | 320,000 | |||
November | 30 | Sales Salaries Expense | 135,000 | |
Office Salaries Expense | 77,250 | |||
Employees Income Tax Payable | 39,266 | |||
Social Security Tax Payable | 12,735 | |||
Medicare Tax Payable | 3,184 | |||
Salaries Payable | 157,065 | |||
30 | Payroll Tax Expense | 16,229 | ||
Social Security Tax Payable | 12,735 | |||
Medicare Tax Payable | 3,184 | |||
State | 270 | |||
Federal Unemployment Tax Payable | 40 | |||
December | 14 | Notes Payable | 670,000 | |
Cash | 670,000 | |||
31 | Pension Expense | 190,400 | ||
Cash | 139,700 | |||
Unfunded Pension Liability | 50,700 |
Table (1)
2.
To determine
Prepare
2.
Expert Solution

Explanation of Solution
Prepare the bank reconciliation statement for Company K.
K Company | ||
Bank Reconciliation December 31, 20Y5 | ||
Particulars | Amount ($) | Amount ($) |
Balance according to bank statement | 283000.00 | |
Adjustments: | ||
Deposit in transit, not recorded by bank | 29500.00 | |
Deduct outstanding checks | (68540.00) | |
Total adjustments | (39040.00) | |
Adjusted balance | 243960.00 | |
Balance according to company’s records | 245410.00 | |
Adjustments: | ||
Bank service charges | (750.00) | |
Error in recording check | (700.00) | |
Total adjustments | (1450.00) | |
Adjusted balance | 243960.00 |
Table (2)
3.
To determine
Record the bank service charges using miscellaneous administrative expense account.
3.
Expert Solution

Answer to Problem 1COMP
Record the
20Y5 | Particulars | Debit ($) | Credit ($) | |
December | 31 | Miscellaneous Expense | 750 | |
Accounts Payable | 700 | |||
Cash | 1,450 |
Table (3)
Explanation of Solution
- • Miscellaneous expense is an expense account and it decreases the value of equity by $750. Therefore, debit miscellaneous expense account with $750.
- • Accounts payable is a liability and it is decreased by $700. Therefore, debit accounts payable account with $700.
- • Cash is an asset and it is decreased by $1,450. Therefore, credit cash account with $1,450.
4.
To determine
Record the
4.
Expert Solution

Explanation of Solution
Record the adjusting entries.
20Y5 | Particulars | Amount ($) | Amount ($) | |
A | 31-Dec | 18,000 | ||
Allowance for Doubtful Accounts | 18,000 | |||
To record estimated uncollectible accounts | ||||
B | 31-Dec | Cost of Goods Sold | 3,300 | |
Inventory | 3,300 | |||
To record inventory shrinkage. | ||||
C | 31-Dec | Insurance Expense | 22,820 | |
Prepaid Insurance | 22,820 | |||
To record expired insurance. | ||||
D | 31-Dec | Office Supplies Expense | 3,920 | |
Office Supplies | 3,920 | |||
To record supplies used during the period. | ||||
E | 31-Dec | 36,000 | ||
Depreciation Expense—Office Equipment | 44,000 | |||
Depreciation Expense—Store Equipment | 5,000 | |||
Accumulated Depreciation—Buildings | 36,000 | |||
Accumulated Depreciation—Office Equipment | 44,000 | |||
Accumulated Depreciation—Store Equipment | 5,000 | |||
To record depreciation for the period. | ||||
20Y5 | Particulars | Amount ($) | Amount ($) | |
F | 31-Dec | Amortization Expense—Patents | 6,000 | |
Patents | 6,000 | |||
To record patent amortization | ||||
G | 31-Dec | Depletion Expense | 30,000 | |
Accumulated Depletion | 30,000 | |||
To record depletion. | ||||
H | 31-Dec | Vacation Pay Expense | 10,500 | |
Vacation Pay Payable | 10,500 | |||
To record vacation pay for the period. | ||||
I | 31-Dec | Product Warranty Expense | 76,000 | |
Product Warranty Payable | 76,000 | |||
To record product warranty for the period. | ||||
J | 31-Dec | Interest Receivable | 1,875 | |
Interest Revenue | 1,875 | |||
To record interest earned on note receivable. |
Table (4)
5.
To determine
Prepare
5.
Expert Solution

Explanation of Solution
Prepare the balance sheet.
K Company | |||
Balance Sheet | |||
As on December 31, 20Y5 | |||
Assets | Amount ($) | Amount ($) | Amount ($) |
Current assets: | |||
Petty cash | 4,500 | ||
Cash | 243,960 | ||
Notes receivable | 100,000 | ||
Accounts receivable | 470,000 | ||
Allowance for doubtful accounts | (16,000) | ||
Accounts receivable, net | 454,000 | ||
Inventory | 320,000 | ||
Interest receivable | 1,875 | ||
Prepaid insurance | 45,640 | ||
Office supplies | 13,400 | ||
Total current assets | 1,183,375 | ||
Property, plant, and equipment: | |||
Land | 654,925 | ||
Buildings | 900,000 | ||
Accumulated depreciation—buildings | (36,000) | ||
Book value—buildings | 864,000 | ||
Office equipment | 246,000 | ||
Accumulated depreciation— office equipment | (44,000) | ||
Book value—office equipment | 202,000 | ||
Store equipment | 112,000 | ||
Accumulated depreciation— store equipment | (5,000) | ||
Book value—store equipment | 107,000 | ||
Mineral rights | 546,000 | ||
Accumulated depletion—mineral rights | (30,000) | ||
Book value—mineral rights | 516,000 | ||
Total property, plant, and equipment Intangible assets: | 2,343,925 | ||
Patents | 42,000 | ||
Total assets | 3,569,300 | ||
Liabilities | |||
Current liabilities: | |||
Social security tax payable | 25,470 | ||
Medicare tax payable | 4,710 | ||
Employees federal income tax payable | 40,000 | ||
State unemployment tax payable | 270 | ||
Federal unemployment tax payable | 40 | ||
Salaries payable | 157,000 | ||
Accounts payable | 131,600 | ||
Interest payable | 28,000 | ||
Product warranty payable | 76,000 | ||
Vacation pay payable (current portion) | 7,140 | ||
Notes payable (current portion) | 70,000 | ||
Total current liabilities | 540,230 | ||
Long-term liabilities: | |||
Vacation pay payable | 3,360 | ||
Unfunded pension liability | 50,700 | ||
Notes payable | 630,000 | ||
Total long-term liabilities | 684,060 | ||
Total liabilities | 1,224,290 | ||
Stockholders’ Equity | |||
Common stock | 500,000 | ||
Retained earnings | 1,845,010 | ||
Total stockholders’ equity | 2,345,010 | ||
Total liabilities and stockholders’ equity | 3,569,300 |
Table (5)
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
The city of Greenfield is considering building a community
sports complex on vacant commercial land. The estimated
benefit to the community is $2,400,000. Contractors have
estimated the net cost to build the sports complex and
rezone the property at $3,200,000.
Should the city build the sports complex?
A. 0.75 and Yes
B. 0.75 and No
C. 1.33 and Yes
D. 1.33 and No
Madison Industries uses the FIFO (first-in, first-out) method in its process costing system. The mixing department had $4,800 in material cost in its beginning work in process inventory, and $68,000 in material cost was added during the period. The equivalent units of production for materials during the period were 17,000 units. What is the cost per equivalent unit for materials? Help
Expert of Account Solve this asap
Chapter 10 Solutions
Financial and Managerial Accounting - CengageNow
Ch. 10 - Does a discounted note payable provide credit...Ch. 10 - Employees are subject to taxes withheld from their...Ch. 10 - Prob. 3DQCh. 10 - Prob. 4DQCh. 10 - Prob. 5DQCh. 10 - Prob. 6DQCh. 10 - Prob. 7DQCh. 10 - Installment notes require equal periodic payments....Ch. 10 - Prob. 9DQCh. 10 - Prob. 10DQ
Ch. 10 - On January 26, Nyree Co. borrowed cash from Conrad...Ch. 10 - Prob. 2BECh. 10 - The payroll register of Heritage Co. indicates...Ch. 10 - Prob. 4BECh. 10 - Prob. 5BECh. 10 - Journalizing installment notes On the first day of...Ch. 10 - Estimated warranty liability Quantas Industries...Ch. 10 - Adieu Company reported the following current...Ch. 10 - Bon Nebo Co. sold 30,000 annual subscriptions of...Ch. 10 - Entries for notes payable Bennett Enterprises...Ch. 10 - Evaluating alternative notes A borrower has two...Ch. 10 - A business issued a 120-day, 5% note for 60,000 to...Ch. 10 - A business issued a 60-day note for 60,000 to a...Ch. 10 - Fixed asset purchases with note On June 30,...Ch. 10 - Prob. 7ECh. 10 - An employee earns 30 per hour and 1.5 times that...Ch. 10 - Prob. 9ECh. 10 - Summary payroll data In the following summary of...Ch. 10 - According to a summary of the payroll of Mountain...Ch. 10 - Prob. 12ECh. 10 - Prob. 13ECh. 10 - Prob. 14ECh. 10 - Prob. 15ECh. 10 - Prob. 16ECh. 10 - Prob. 17ECh. 10 - Prob. 18ECh. 10 - Entries for installment note transactions On the...Ch. 10 - Entries for installment note transactions On...Ch. 10 - Prob. 21ECh. 10 - Prob. 22ECh. 10 - Prob. 23ECh. 10 - Prob. 24ECh. 10 - The following items were selected from among the...Ch. 10 - Entries for payroll and payroll taxes The...Ch. 10 - Ehrlich Co. began business on January 2. Salaries...Ch. 10 - Prob. 4PACh. 10 - Payroll accounts and year-end entries The...Ch. 10 - Liability transactions The following items were...Ch. 10 - Entries for payroll and payroll taxes The...Ch. 10 - Wage and tax statement data and employer FICA tax...Ch. 10 - Prob. 4PBCh. 10 - Payroll accounts and year-end entries The...Ch. 10 - Prob. 1COMPCh. 10 - Amazon.com, Inc. (AMZN) is one of the largest...Ch. 10 - Prob. 2MADCh. 10 - Prob. 3MADCh. 10 - Neiman Marcus Group (NMG) is one of the largest...Ch. 10 - Prob. 5MADCh. 10 - Prob. 1TIFCh. 10 - Prob. 2TIFCh. 10 - Communication WBM Motorworks is a manufacturer of...Ch. 10 - Prob. 5TIF
Knowledge Booster
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.Similar questions
- Nicole Manufacturing had 780 units in beginning work in process on September 1, 2023. During the month, an additional 2,600 units were started in production. At the end of September, 1,150 units remained in work in process. How many units were completed during September?arrow_forwardPlease show me how to solve this financial accounting problem using valid calculation techniques.arrow_forwardSolve this question and general accountingarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,Financial AccountingAccountingISBN:9781305088436Author:Carl Warren, Jim Reeve, Jonathan DuchacPublisher:Cengage LearningCollege Accounting (Book Only): A Career ApproachAccountingISBN:9781305084087Author:Cathy J. ScottPublisher:Cengage Learning
- College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College PubCentury 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:CengageAuditing: A Risk Based-Approach (MindTap Course L...AccountingISBN:9781337619455Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:Cengage Learning

Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,

Financial Accounting
Accounting
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Cengage Learning

College Accounting (Book Only): A Career Approach
Accounting
ISBN:9781305084087
Author:Cathy J. Scott
Publisher:Cengage Learning

College Accounting (Book Only): A Career Approach
Accounting
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:South-Western College Pub
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:9781337679503
Author:Gilbertson
Publisher:Cengage

Auditing: A Risk Based-Approach (MindTap Course L...
Accounting
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Cengage Learning