Kenseth Corporation’s unadjusted trial balance at December 1, 2014, is presented
ID: 2489529 • Letter: K
Question
Kenseth Corporation’s unadjusted trial balance at December 1, 2014, is presented below.
Debit
Credit
The following transactions occurred during December.
Adjustment data:
10 Income tax expense was $14,940. It was unpaid at December 31
Prepare an adjusted trial balance at December 31, 2014.
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 $1,189,140Explanation / Answer
2-Dec Equipment Dr 19200 Cash Cr 19200 2-Dec Cash Dr 3500 Accumulated deprciation-equipment Dr 1890 depriciation Dr 430 Equipment Cr 5000 Profit on sale of equipment Cr 820 15-Dec Accounts receivable Dr 5310 Sales Revenue Cr 5310 Cost of goods sold Dr 3290 Inventory Cr 3290 23-Dec Salaries and wages expense Dr 6560 Salary and wages payable Cr 6560 Adjustment 1) Bad Debts expense Dr 3850 Allowance for doubtful accounts Cr 3850 2) Interest receivable Dr 504 Interest revenue Cr 504 ( 8400*8%/12*9) 3) Insurance epense Dr 2540 Prepaid Insurance Cr 2540 (3810/6*4) 4) Depriciation expense Dr 4360 Accumulated depriciation - Building Cr 4360 ( 162000 - 31200)/30 5) Depriciation expense Dr 4320 Accumulated depriciation - Equipment Cr 4320 (24400 - 24400*10%)/5 6) Depriciation expense Dr 3372 Accumulated depriciation - Equipment Cr 3372 ( 19200 - 2340)/5 7) Amortization expense Dr 1170 accumulated amortization Cr 1170 (10530/9) 8) Salaries and wages expense Dr 2060 Salary and wages payable Cr 2060 9) Interest expense Dr 4813 interest payable Cr 4813 ( 12400*10%+ 35730*10%) 10) income tax expense Dr 14940 income tax payable Cr 14940 Unadjusted Entries adjusted Dr Cr Dr Cr Dr Cr Cash 26890 15700 11190 Acconts receivable 35290 5310 40600 Notes receivable 8400 8400 Interest receivable 0 504 504 Inventory 36210 3290 32920 Prepaid Insurance 3810 2540 1270 Land 20200 20200 Building 162000 162000 Equipment 61000 19200 5000 75200 Patent 10530 10530 Allowance for Doubtful accounts 440 3850 4290 Accumulated depriciation- Building 54000 4360 58360 Accumulated depriciation- Equipment 24400 1890 7692 30202 Accumulated amortization 1170 1170 Accounts payable 28400 0 28400 Salaries and wages payable 8620 8620 Notes payable( short) 12400 12400 Interest payable 4813 4813 Notes payable (long) 35730 35730 Income tax payable 14940 14940 Common stock 59500 59500 Retained earnings 56570 56570 Dividends 14800 14800 Sales revenue 917700 5310 923010 Interesr revenue 504 504 Gin on disposal of plant assets 820 820 Bad debt expense 3850 3850 Cost of goods sold 639600 3290 642890 Depriciation expense 12482 12482 Insurance expense 2540 2540 Interest expense 4813 4813 Other operating expense 61310 61310 Amortization expense 1170 1170 Salaries and wages expense 109100 8620 117720 Income tax expense 14940 14940 1189140 1189140 78609 78609 1239329 1239329
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