is required to make a $5,000 payment toward the note payable during the 2016 fis
ID: 2468646 • Letter: I
Question
is required to make a $5,000 payment toward the note payable during the 2016 fiscal year.)
Requirements.
General Journal tab - Prepare any necessary adjusting and closing entries for the current fiscal year.
General Ledger tab - Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted, adjusted, or post-closing balances.
Trial Balance tab - You may view the unadjusted, adjusted, or post-closing trial balances by choosing from the dropdown box below. Your choice will determine the reported values on the financial statement tabs.
Income Statement tab - Use the drop-downs to select the accounts properly included on the income statement. The unadjusted, adjusted or post-closing balances will appear for each account, based on your selection.
Statement of Owner's Equity tab - The unadjusted, adjusted or post-closing balances will appear for each account, based on your selection.
Balance Sheet tab - Use the drop-downs to select the accounts properly included on the balance sheet. The unadjusted, adjusted or post-closing balances will appear for each account, based on your selection.
Post-Closing tab - Use the drop-downs to indicate whether each account is included on the post-closing trial balance.
The unadjusted trial balance for Ace Construction Co. as of the end of its 2015 fiscal year is provided on the trial balance tab. The June 30, 2014, credit balance of the owner’s capital account was $53,660, and the owner invested $35,000 cash in the company during the 2015 fiscal year. Information for adjustments is as follows: a. The supplies available at the end of fiscal year 2015 had a cost of $3,300. b. The cost of expired insurance for the fiscal year is $3,800. c. Annual depreciation on equipment is $8,400. d. The June utilities expense of $650 is not included in the unadjusted trial balance because the bill arrived after the trial balance was prepared. The $650 amount owed needs to be recorded. e. The company’s employees have earned $1,800 of accrued wages at fiscal year-end. f. The rent expense incurred and not yet paid or recorded at fiscal year-end is $500. g. Additional property taxes of $1,000 have been assessed for this fiscal year but have not been paid or recorded in the accounts. h. The long-term note payable bears interest at 12% per year. The unadjusted Interest Expense account equals the amount paid for the first 11 months of the 2015 fiscal year. The $250 accrued interest for June has not yet been paid or recorded. (The companyis required to make a $5,000 payment toward the note payable during the 2016 fiscal year.)
Requirements.
General Journal tab - Prepare any necessary adjusting and closing entries for the current fiscal year.
General Ledger tab - Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted, adjusted, or post-closing balances.
Trial Balance tab - You may view the unadjusted, adjusted, or post-closing trial balances by choosing from the dropdown box below. Your choice will determine the reported values on the financial statement tabs.
Income Statement tab - Use the drop-downs to select the accounts properly included on the income statement. The unadjusted, adjusted or post-closing balances will appear for each account, based on your selection.
Statement of Owner's Equity tab - The unadjusted, adjusted or post-closing balances will appear for each account, based on your selection.
Balance Sheet tab - Use the drop-downs to select the accounts properly included on the balance sheet. The unadjusted, adjusted or post-closing balances will appear for each account, based on your selection.
Post-Closing tab - Use the drop-downs to indicate whether each account is included on the post-closing trial balance.
Explanation / Answer
1) Supplies on hand will be asset for business and supplies expense will be reduced accordingly considering expense method was used for recording supplies expense
2) insurance expired will be reduced from prepaid insurance
3) all expense payable will be booked as liability by transferring them to their respective payable accouns
4) 5000 long term note is payable in next fiscal year there fore it has been transferred to short term notes payable account
Date Particulars Debit Credit 1 Supplies 3300 Supplies expense 3300 2 Insurance expense 3800 Prepaid insurance 3800 3 Depreciation expense 8400 Acccumulated depreciation 8400 4 Utilities expenses 650 Accounts payable 650 5 Wage expense 1800 Wages payable 1800 6 Rent expense 500 Rent Payable 500 7 Propery tax expesne 1000 Property Tax Payable 1000 8 Interest Expense 250 Accrued interest 250 9 Long term note payable 5000 Short term note payable 5000Related Questions
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