Explore BrainMass

Problem 7.18: Transaction Analysis-Various Accounts

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Enter the following column headings across the top of a sheet of paper:
Net Income
Enter the transaction/adjustment letter in the first column, and show the effect, if any, of each of the transactions/adjustments on the appropriate balance sheet category or on the income statement by entering the amount and indicating whether it is an addition ( +) or a subtraction (-). You may also write the journal entries to record each transaction/adjustment.

a. Wages of $768 accrued at the end of the prior fiscal period were paid this fiscal
b. Real estate taxes of $2,400 applicable to the current period have not been accrued.
c. Interest on bonds payable has not been accrued for the current month. The company has outstanding $360,000 of7.5% bonds.
d. The premium related to the bonds in part c has not been amortized for the current month. The current-month amortization is $70.
e. Based on past experience with its warranty program, the estimated warranty expense for the current period should be 0.2% of sales of $918,000.
f. Analysis of the company's income taxes indicates that taxes currently payable are
$76,000 and that the deferred tax liability should be increased by $21,000.

© BrainMass Inc. brainmass.com October 25, 2018, 8:08 am ad1c9bdddf

Solution Summary

Your tutorial is attached in excel. Click in cells to see computations.