The attached file is an example.
Enter the transaction/adjustment letter in the first column, and show the effect, if any, of each of the transactions/adjustments on the appropiate 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 period.
B) Real Estate tax of $2400.00 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 of 7.5% bonds.
D) The premium related to the bonds in part c has not been amortized for the current month. The current month amortization is $70.00
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 indicate that taxes currently payable are $76,000 and that the deferred tax liability should be increased by $21,000.
Show your work in Excel. Attached is an example.© BrainMass Inc. brainmass.com June 4, 2020, 1:31 am ad1c9bdddf
The solution presents a transaction analysis and the journal entries in proper form complete with calculations and explanations.