Adjusting Entries: Retained earnings at 1/1/10 was $150,000 and at 12/31/10 it was $200,000. During 2010 cash dividends of $60,000 were paid and a stock dividend of $40,000 was issued. Both dividends were properly charged to retained earnings. You are to provide the missing closing entry. For each journal entry write Dr for debi
PharmGen, a pharmaceutical company, was founded two years ago. Like most pharmaceutical campanies, PharmGen did not make any profits in its first two years of operations since the company spent heavily on research and development to create new drugs. However, in order to continue to attract investors, the company would like to i
A rowdy spring break guest damages a jukebox that had been purchased in 1995 for $800. The jukebox had a useful of ten years, with an estimated salvage value of $75. The company decided to scrap the jukebox after the incident. Prepare the journal entry recording the scrapping of the jukebox My answer is: Debit - accumu
What is the impact of not balancing intercompany payables/receivables on a monthly basis? What is the impact on not eliminating intercompany payables/receivables during the consolidation? Is there an instance where either of these two practices would be acceptable?
In 2010, Bailey Corporation discovered that equipment purchased on January 1, 2008, for $50,000 was expensed at that time. The equipment should have been depreciated over 5 years, with no salvage value. The effective tax rate is 30%. Prepare Bailey's 2010 journal entry to correct the error.
Unearned rent at 1/1/10 was $7,300 and at 12/31/10 was $8,000. The records indicate cash receipts from rental sources during 2010 amounted to $40,000, all of which was credited to the Unearned Rent Account. You are to prepare the missing adjusting entry. Please indicate DR (debit ) or CR (credit) to the left of the account t
Prepaid rent at 1/1/10 was $20,000. During 2010 rent payments of $123,000 were made and charged to "rent expense." The 2010 income statement shows as a general expense the item "rent expense" in the amount of $122,000. You are to prepare the missing adjusting entry that must have been made, assuming reversing entries are no
Allowance for doubtful accounts on 1/1/10 was $50,000. The balance in the allowance account on 12/31/10 after making the annual adjusting entry was $65,000, and during 2010 bad debts written off amounted to $40,000. You are to provide the missing adjusting entry. Please indicate DR (debit) or CR (credit) to the left of the a
Presented below is information related to Alvarenga Company: 1. The company is granted a charter that authorizes issuance of 15,000 shares of $100 par value preferred stock and 40,000 shares of no-par common stock. 2. 8,000 shares of common stock are issued to the founders of the corporation for land valued by the board of d
Unearned rent at 1/1/10 was $7,300 and at 12/31/10 was $8,000. The records indicate cash receipts from rental sources during 2010 amounted to $40,000, all of which was credited to the Unearned Rent Account. You are to prepare the missing adjusting entry. Please indicate DR (debit ) or CR (credit) to the left of the account title
Allowance for doubtful accounts on 1/1/10 was $60,000. The balance in the allowance account on 12/31/10 after making the annual adjusting entry was $55,000, and during 2010 bad debts written off amounted to $40,000. You are to provide the missing adjusting entry. Please indicate DR (debit) or CR (credit) to the left of the acc
Prepaid rent at 1/1/10 was $20,000. During 2010 rent payments of $123,000 were made and charged to "rent expense." The 2010 income statement shows as a general expense the item "rent expense" in the amount of $122,000. You are to prepare the missing adjusting entry that must have been made, assuming reversing entries are not ma
Prepare the necessary journal entries to record the following transactions relating to the long-term issuance of bonds of Jimenez Co.: March 1 Issued $800,000 face value Jimenez Co. second mortgage, 8% bonds for $872,160, including accrued interest. Interest is payable semiannually on December 1 and June 1 with the bonds mat
On November 1, 2007, Norwood borrows $540,000 cash from a bank by signing a six-year installment not bearing 9% interest. The note requires equal total payments each year on October 31. 1. Compute the total amount of each installment payment. Use the present value table 2. Compute an amortization table for this installme
Please use Excel. On January 1, 2010, Parabolic Company issued 8% bonds with a face amount of $72.9 million, dated January 1. The bonds mature in 2025 (15 years). The market yield for bonds of similar risk and maturity is 10%. Interest is paid semiannually. Required: 1. Assume the market rate was 7%. Determine the pri
Uddin Publishing Co. publishes college textbooks that are sold to bookstores on the following terms. Each title has a fixed wholesale price, terms f.o.b. shipping point, and payment is due 60 days after shipment. The retailer may return a maximum of 30% of an order at the retailer's expense. Sales are made only to retailers who
P3_28a questions P3-28a Journalize the adjusting entry needed on December 31, the end of the current accounting year, for each of the following independent cases affecting Wisconsin alps. No other adjusting entries have been made for the year. A- Prior to making the adjusting entry on December 31, the balance in Prepaid I
Sheryl Crow Equipment Company sold 500 Rollomatics during 2007 at $6,000 each. During 2007, Crow spent $20,000 servicing the 2-year warranties that accompany the Rollomatic. All applicable transactions are on a cash basis. Instructions: (a) Prepare 2007 entries for Crow using the expense warranty approach. Assume that
On July 1 of the current year, Melissa Co. acquired 25% of the outstanding shares of common stock of International Co. at a total cost of $700,000. At the time, the equity (net assets) of International Co. totaled $2,400,000, meaning that the $700,000 purchase price was greater than 25% of net assets. Melissa was willing to pa
See attached file. The County of Maxnell decides to create a sanitation department and offer its services to the public for a fee. As a result, county officials plan to account for this activity within the enterprise funds. Make Journal entries for this operation for the following 2008 transactions as well as necessary ad
13. The Brawn Company had a $400 credit balance in Allowance for Doubtful Accounts at December 31, 2007, before the current year's provision for uncollectible accounts. An aging of the accounts receivable revealed the following: Estimated Percentage
Problem 1: 1. On December 3, Rebecca Company sold $48,000 of merchadise to Simonis Co.,2/10 ,n/30, FOB shipping point. The cost of the merchadise sold was $350,000. 2. On December 8, Simmons Co. was granted an allowance of $27,000 for merchadise purchased on December 3. 3. On December 13, Rebecca Company received the balan
Prince Corporation purchased 960,000 shares of Smithtown Corporation's common stock (an 80% interest) for 21,200,000 on January 1, 2006. The 2,000,000 excess of investment cost over book value acquired was allocated to goodwill On January 1, 2008, Smithtown sold 400,000 previously unissued shares of common stock to the public
9-2A Ming Company began operations on January 1, 2008. During its first two years, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows. 2008 a. Sold $1,347,700 of merchandise (that had cost $982,500) on credit,
PharmGen, a pharmaceutical company, was founded two years ago. Like most pharmaceutical companies, PharmGen did not make any profits in its first two years of operations since the company spent heavily on research & Development to create new drugs. However, in order to continue to attract investors, the company would like to iss
A company previously issued $2,000,000, 10% bonds, receiving a $120,000 premium. On the current year's interest date, after the bond interest was paid and after 40% of the total premium had been amortized, the company purchased the entire bond issue on the open market at 98 and retired it. Prepare the journal entry to record the
On January 1, 2009, Frederich Corporation purchased 7,500 shared of SportTech, Inc. as a Long-term investment for a total of $235,000.The 7,500 shares represent 30% of the outstanding (25,000) shares of SportTech. Prepare the journal entries for Frederich to record the following transactions and events: December 31, 2009: Sp
Hormel Co. follows the practice of recording prepaid expenses and unearned revenues in balance sheet accounts. The company's annual accounting period ends on December 31, 2009. The following information concerns the adjusting entries to be recorded as of that date. a. The Office Supplies account started the year with a $2,900
Prepare a general journal entries to record these transactions: 1 Mar - Brooks invested 180,000 cash along with 30,000 of office equipment in the company. 2 Mar - The company prepaid 8,000 cash for 6 months rent for an office (Hint: Debit Prepaid Rent for 8,000). 3 Mar - The company made credit purchases of office equipment
I need to double check my answers with a professional. Thank you. Please see attached. P13-2 Listed below are selected transactions of Shultz Department Store for the current year ending December 31. 1. On December 5, the store received $500 from the Jackson Players as a deposit to be returned after certain furniture to