INTERMEDIATE ACCOUNTING
3rd Edition
ISBN: 9780136946694
Author: GORDON
Publisher: RENT PEARS
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Textbook Question
Chapter 4, Problem 4.7P
Preparing the
Required
- a. Journalize and
post adjusting journal entries based on the following additional information (omit explanations): - ■ At December 31, interest in the amount of $2,600 has accrued on the note payable but has not yet been recorded. This amount will be paid on January 31, 2019.
- ■ The rent payment made on February 28 was for a 12-month lease covering March 1, 2018, to February 29, 2019.
- ■ Straight-line
depreciation for the full year should be recorded on the equipment purchased on February 1. The equipment has a 15-year life and no residual value. - ■ A total of $6,000 of supplies remains on hand at the end of the year.
- ■ Wage payments in the amount of $62,000 must be accrued at year-end.
- ■ On December 14, Tides received a utilities bill in the amount of $6,200 for the month of November that has not yet been recorded. The amount will be paid in January 2019.
- b. Prepare an adjusted trial balance as of December 31.
- c. Prepare an income statement, a statement of shareholders’ equity, and a
balance sheet .
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Journalizing and Posting
On September 18, 2019, Afton Company purchased $3,180 of supplies on account. In Afton Company's chart of accounts, the supplies account is No. 15, and the accounts payable account is No. 21.
a. Journalize the September 18, 2019, transaction on page 87 of Afton Company's two-column journal.
Page: 87
POST.
DATE
DESCRIPTION
DEBIT CREDIT
REF.
Sept. 18, 2019 Supplies
15
3,180
Accounts Payable
21
3,180
b. & d. In the four-column account for Supplies, enter a debit balance of $1,530 as of September 1, 2019. Place a check mark () in the Posting Reference column. Post the September 18, 2019, transaction to the account. For those boxes in
which no entry is required, leave the box blank.
GENERAL LEDGER
Account Supplies
Account No. 15
POST.
BALANCE
DATE
ITEM
DEBIT CREDIT
REF.
DEBIT CREDIT
Sept. 1, 2019 Balance
Sept. 18, 2019
C. & d. In the four-column account for Accounts Payable, enter a credit balance of $22,640 as of September 1, 2019. Place a check mark () in the…
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Chapter 4 Solutions
INTERMEDIATE ACCOUNTING
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