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Chapter 3: Q7BE (page 128)
(LO2,3) Dresser Company’s weekly payroll, paid on Fridays, totals \(8,000. Employees work 5-days week. Prepare Dresser’s adjusting entry on Wednesday, December 31, and the journal entry to record the \)8,000 cash payment on Friday, January 2.
The total for both debit and credit sides is $12,800.
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Agazzi Repair Shop had the following transactions during the first month of business as a proprietorship. Journalize the transactions. (Omit explanations.) Aug. 2 Invested \(12,000 cash and \)2,500 of equipment in the business. 7 Purchased supplies on account for \(500. (Debit asset account.) 12 Performed services for clients, for which \)1,300 was collected in cash and \(670 was billed to the clients. 15 Paid August rent \)600. 19 Counted supplies and determined that only $270 of the supplies purchased on August 7 are still on hand.
How is the date of transition and the date of reporting determined in first-time adoption of IFRS?
Question: Presented below is the trial balance of the Crestwood Golf Club, Inc. as of December 31. The books are closed annually on December 31.
CRESTWOOD GOLF CLUB, INC. TRIAL BALANCE DECEMBER 31 | ||
Debit | Credit | |
Cash | \(15,000 | |
Accounts receivables | 13,000 | |
Allowance for doubtful accounts | \)1,100 | |
Prepaid insurance | 9,000 | |
Land | 350,000 | |
Building | 120,000 | |
Accumulated depreciation – building | 38,400 | |
Equipment | 150,000 | |
Accumulated depreciation – equipment | 70,000 | |
Common stock | 400,000 | |
Retained earnings | 82,000 | |
Dues revenue | 200,000 | |
Green fees revenue | 5,900 | |
Rent revenue | 17,600 | |
Utilities expenses | 54,000 | |
Salaries and wages expenses | 80,000 | |
Maintenance and repair expenses | 24,000 | |
\(815,000 | \)815,000 | |
Instructions
(a) Enter the balances in ledger accounts. Allow five lines for each account.
(b) From the trial balance and the information given below, prepare annual adjusting entries and post to the ledger accounts. (Omit explanations.)
(1) The buildings have an estimated life of 30 years with no salvage value (straight-line method).
(2) The equipment is depreciated at 10% per year.
(3) Insurance expired during the year \(3,500.
(4) The rent revenue represents the amount received for 11 months for dining facilities. The December rent has not yet been received.
(5) It is estimated that 12% of the accounts receivable will be uncollectible.
(6) Salaries and wages earned but not paid by December 31, \)3,600.
(7) Dues received in advance from members $8,900 were recorded as Dues Revenue.
(c) Prepare an adjusted trial balance.
(d) Prepare closing entries and post.
Employees are paid every Saturday for the preceding work week. If a balance sheet is prepared on Wednesday, December 31, what does the amount of wages earned during the first three days of the week (12/29, 12/30, 12/31) represent? Explain.
BE3-9 (L03) Prepare the following adjusting entries at August 31 for Walgreens. (a) Interest on notes payable of \(300 is accrued. (b) Services performed but unbilled total \)1,400. (c) Salaries and wages earned by employees of \(700 have not been recorded. (d) Bad debt expense for year is \)900. Use the following account titles: Service Revenue, Accounts Receivable, Interest Expense, Interest Payable, Salaries and Wages Expense, Salaries and Wages Payable, Allowance for Doubtful Accounts, and Bad Debt Expense.
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