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Concept explainers
Completing the accounting cycle from
Learning Objectives 1, 2,3,4,5
Ending Capital $75,095
On December 1, Bob Waldo began an auto repair shop, Waldo's Quality Automotive. The following transactions occurred during December:
Dec1 Wilton contributed JS3.000 with to the business in exchange for capital,
1 Purchased $14.400 of equipment paying cash.
1 Paid $3,600 for a twelve−month insurance policy starting on December 1.
9 Paid $15,000 cash to purchase land to be used in operations.
10 Purchased office supplies on account, $2,200.
19 Borrowed $24,000 from the bank for business use.Wilson signed a notepayable to the ban k in the name of the business. The note is due in five years.
22 Paid $2,000 for advertising expenses
26 Paid $1,000 on account.
28 The business received a bill for utilities to be paid in January. $260.
91 Revenues earned during the month included $18,500 cash and $5,800 on account.
31Paid employees' salaries $3,900 and building rent $800. Record as a compound entry.
3t The business received $1,380 for auto screening services to be performed neat month.
31 Wilson withdrew cash of $5,000,
The business uses the following accounts: Cash;
Adjustment data:
- Office Supplies used during the month, $1,8OO.
- Depreciation for the month, $200.
- Onemonthinsurance has expired.
- Accrued Interest Expense,$75.
Requirements
- Prepare the journal entries, and post to the T-accounts.
- Prepare an unadjusted trial balance.
- Complete the worksheet forthe month ended December 31,2018(optional).
A Prepare the
5. Prepare an adjusted trial balance.
c. Prepare the income statement, the statement of owner's equity, and the classified
7. Prepare the closing entries, and post to the “-accounts.
B. Prepare a post-closing trial balance.
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Chapter 4 Solutions
Horngren's Accounting: The Managerial Chapters (12th Edition) (loose Leaf Version)
- On January 1, 2024, Maywood Hydraulics leased drilling equipment from Aqua Leasing for a four-year period ending December 31, 2027, at which time possession of the leased asset will revert back to Aqua. • The equipment cost Aqua $423,414 and has an expected economic life of five years. Aqua and Maywood expect the residual value at December 31, 2027, to be $60,000. Negotiations led to Maywood guaranteeing a $85,000 residual value. • Equal payments under the lease are $120,000 and are due on December 31 of each year with the first payment being made on December 31, 2024. Maywood is aware that Aqua used a 7% interest rate when calculating lease payments. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Required: 1. & 2. Prepare the appropriate entries for Maywood on January 1, 2024 and December 31, 2024, related to the lease. Note: If no entry is required for a transaction/event, select "No journal entry required" in…arrow_forwardWhat is the break even point in sales provide answerarrow_forwardhelp me to solve this questionsarrow_forward
- Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage LearningCentury 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage
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