Kenseth Corporation’s unadjusted trial balance at December 1, 2014, is presented
ID: 2485565 • Letter: K
Question
Kenseth Corporation’s unadjusted trial balance at December 1, 2014, is presented below.
Debit
Credit
$1,189,140
The following transactions occurred during December.
2
Adjustment data:
Prepare journal entries for the transactions listed above and adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Debit
Credit
Cash $26,890 Accounts Receivable 35,290 Notes Receivable 8,400 Interest Receivable –0– Inventory 36,210 Prepaid Insurance 3,810 Land 20,200 Buildings 162,000 Equipment 61,000 Patent 10,530 Allowance for Doubtful Accounts $440 Accumulated Depreciation—Buildings 54,000 Accumulated Depreciation—Equipment 24,400 Accounts Payable 28,400 Salaries and Wages Payable –0– Notes Payable (due April 30, 2015) 12,400 Interest Payable –0– Notes Payable (due in 2020) 35,730 Common Stock 59,500 Retained Earnings 56,570 Dividends 14,800 Sales Revenue 917,700 Interest Revenue –0– Gain on Disposal of Plant Assets –0– Bad Debt Expense –0– Cost of Goods Sold 639,600 Depreciation Expense –0– Insurance Expense –0– Interest Expense –0– Other Operating Expenses 61,310 Amortization Expense –0– Salaries and Wages Expense 109,100 Total $1,189,140$1,189,140
Explanation / Answer
Amount $ date Accounts Title Dr Cr 2-Dec Equipment 19200 Cash (17400+1800) 19200 2-Dec Depreciation-Equipment 430 Accumulated Deprecitaion 430 Cash 3500 Accumulated Deprecitaion (1890+430) 2320 Equipment 5000 Gain on sale of equipment (3500+2320-5000) 820 15-Dec Accounts Receivable 5310 sales 5310 Cost of Good sold 3290 Inventory 3290 23-Dec Salaries & wages expenses 6560 Cash 6560 Adjusting entry 1 Bad Debt Expenses 3410 Allowance For Doubtful debts (3850-440) 3410 2 Interest Receivable 504 Interest Revenue (8400*8%*9/12) 504 3 Insurance Expenses 2540 Prepaid insurance (3810/6*4) 2540 4 Depreciation Expense (162000-31200)/30 4360 Accumulated Depreciation—Buildings 4360 5 Depreciation Expense (61000-6100)/5 10980 Accumulated Depreciation—Equipment 10980 6 Depreciation Expense (19200-2340/60 months*1 month 281 Accumulated Depreciation—Equipment 281 7 Amortization expenses (10530/9) 1170 Accumulated amortization-Patent 1170 8 Salaries & wages expenses 2060 Salaries & wages payable 2060 9 Interest expense 4813 Interest payable (12400+35730)*10% 4813 10 Income Tax Expenses 14940 income Tax payable 14940
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