Chapter 3, Problem 3.3BP

(a)

To determine

Journalizing:

It is the process of recording the transactions of an organization in a chronological order. Based on these journal entries recorded, the amounts are posted to the relevant ledger accounts.

Rules of Debit and Credit:

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

• Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.
• Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses.

Financial statements:

Financial statements refer to those statements, which are prepared by the Company according to particular formats in accounting to show its financial position.

To journalize: The adjusting entries of Company D for the year ended December 31, 2015.

b)

To determine

To prepare: Income statement and retained earnings statements of Company D for the year ended December 31, 2015.

(c)

To determine

The outstanding amount of interest percentage, and amount of salaries and wages payable.