Financial Accounting
14th Edition
ISBN: 9781305088436
Author: Carl Warren, Jim Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Question
Chapter 4, Problem 1PA
(1)
To determine
Prepare income statement for the year ended December 31, 2016.
(2)
To determine
Prepare statement of owners’ equity for the year ended December 31, 2016.
(3)
To determine
Prepare the balance sheet of Company L at December 31, 2016.
(4)
To determine
Journalize the closing entries for L Company.
(5)
To determine
Prepare post–closing trial balance of Company L for the month ended December 31, 2016.
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Lamp Light Company maintains and repairs warning lights, such as those found on radio towersand lighthouses. Lamp Light prepared the following end-of-period spreadsheet at December 31,2018, the end of the fiscal year:
Instructions1. Prepare an income statement for the year ended December 31.2. Prepare a retained earnings statement for the year ended December 31.3. Prepare a balance sheet as of December 31.4. Based upon the end-of-period spreadsheet, journalize the closing entries.5. Prepare a post-closing trial balance.
The following items were selected from among the transactions completed by Sherwood Co. during the current year:Required:1. Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year. Round your answers to the nearest dollar.2. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year (refer to the Chart of Accounts for exact wording of account titles):a. Product warranty cost, $29,000.b. Interest on the nine remaining notes owed to Greenwood Co. Assume a 360-day year.
Below are four transactions that were completed during 2016 by Timber Lodge. Provide any related journal entries (including both active and passive entries) for the fiscal year ended on December 31.
A. On July 1, 2016, Timber Lodge paid a two-year insurance premium $8000 for a policy on its facilities.
B. On December 31, 2016, a tenant renting some storage space from Timber Lodge had not paid the rent of $750 for December.
C. On September 1, 2016, Timber Lodge borrowed $25,000 cash and gave a one-year, 6 percent, note payable. The interest is payable on the note's due date of August 31, 2017.
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Chapter 4 Solutions
Financial Accounting
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