accounting principle-Comprehensive Problem: Chapters 3 to 10 Please answer (a) t
ID: 2498627 • Letter: A
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accounting principle-Comprehensive Problem: Chapters 3 to 10 Please answer (a) to (d) , thanks! CP1O 2014-transactions have been recorded except for the items described on the fo ecember 31, 20t-dris presented below. All s have been recorded except for the items described on the following page. t December 31, 2014-is present Debit Cash Accounts Receivable Notes Receivable Interest Receivable Inventory Prepaid Insurance Land Buildings Equipment Patents Allowance for Doubtful Accounts Accumulated Depreciation-Buildings Accumulated Depreciation-Equipment Accounts Payable Salaries and Wages Payable Unearned Rent Revenue 200 Notes Payable (due in 20 Interest Payable Notes Payable (due after 2015) Owner's Capital Owners Drawings Sales Revenue Interest Revenue Rent Revenue Gain on Disposal of Plant Assets Bad Debt Expense Cost of Goods Sold Depreciation Expense Insurance Expense Interest Expense Other Operating Expenses Amortization Expense Salaries and Wages Expense Total Credit $ 28,000 36,800 10,000 36,200 3,600 20,000 150,000 60,000 9,000 $ 500 50,000 27,300 6,000 24,000 L 11,000 30,000 113,600 12,000 95,000 3 dwil 630,000 61,800 110,000 $1,167,400 $1,167,400 Unrecorded transaçtions: 1. On May 1 Hassellhouf purchased equipment for $21,200 plus sales taxes of 2. On July 1. 20P°Hassellhouf sold for $3,500 equipment that originally cost $5,000. 3. On December 31, 2014: Hassellhouf sold for $9,000 on account inventory that cost 4. Hassellhouf estimates that uncollectible accounts receivable at yearend is $1,600 (all paid in cash) , was $1,800:2014201 Accumulated depreciation on this equipment at January 1, depreciation prior to the sale of the equipment was S450 $6,300 4,p 5. The note receivable is a one-year, 8% note dated April 1, 2014) No interest has been 6. The balance in prepaid insurance represents payment of a $3,600 6-month premium 7. The building isted using the straight-line method over 30 yearns. on September 1, 3014 2 30 years. The salvage value is $30,000.Explanation / Answer
Answer:(a)
(a) 1. Equipment..................................................................................... 22,800
Cash........................................................................................ 22,800
2. Depreciation Expense—Equipment............................................ 450
Accumulated Depreciation—Equipment............................. 450
Cash............................................................................................... 3,500
Accumulated Depreciation—Equipment................................... 2,250
Equipment.............................................................................. 5,000
Gain on Disposal.................................................................... 750
3. Accounts Receivable..................................................................... 9,000
Sales......................................................................................... 9,000
Cost of Goods Sold....................................................................... 6,300
Merchandise Inventory......................................................... 6,300
4. Bad Debts Expense....................................................................... 3,500
Allowance for Doubtful Accounts........................................ 3,500
5. Interest Receivable ($10,000 X .08 X 9/12)................................... 600
Interest Revenue.................................................................... 600
6. Insurance Expense....................................................................... 2,400
Prepaid Insurance.................................................................. 2,400
7. Depreciation Expense—Building................................................ 4,000
Accumulated Depreciation—Building................................. 4,000
8. Depreciation Expense—Equipment............................................ 9,900
Accumulated Depreciation—Equipment............................. 9,900
[($60,000 – $5,000 – $5,500) ÷ 5]
9. Depreciation Expense—Equipment............................................ 2800
Accumulated Depreciation—Equipment............................. 2800
[($22,800 – $1,800) ÷ 5] X 8/12
10. Amortization Expense—Patents................................................. 900
Patent...................................................................................... 900
11. Salaries & Wages Expense........................................................... 5,200
Salaries & Wages Payable..................................................... 5,200
12. Unearned Rent............................................................................. 2,000
Rent Revenue......................................................................... 2,000
13. Interest Expense........................................................................... 3690
Interest Payable...................................................................... 3690
($11,000 + $30,000) X.09
*($24,000 + $450 – $2,250 + $9,900 + $2800)
HasselHouf Company Trial Balance December 31,2017 Particulars Debits Credit Cash ($28,000 – $22,800 + $3,500) 8700 Accounts Receivable 45,800 Notes Receivable 10,000 Interest Receivable 600 Merchandise Inventory 29,900 Prepaid Insurance 1,200 Land 20,000 Building 150,000 Equipment($60,000 + $22,800 – $5,000) 77,800 Patent 8,100 Allowance for Doubtful Accounts $4,000 Accumulated Depreciation—Building 54,000 Accumulated Depreciation—Equipment 34900 Accounts Payable 27,300 Salaries & Wages Payable 5,200 Unearned Rent 4,000 Notes Payable (short-term) 11,000 Interest Payable 3,690 Notes Payable (long-term) 30,000 Owner's capital 113,600 Owner's Drawing 12,000 Sales 914,000 Interest Revenue 600 Rent Revenue 2,000 Gain on Disposal 750 Bad Debts Expense 3,500 Cost of Goods Sold 636,300 Depreciation Expense—Building 4,000 Depreciation Expense—Equipment 13,150 Insurance Expense 2,400 Interest Expense 3,690 Other Operating Expenses 61,800 Amortization Expense–Patents 900 Salaries Expense 115,200 Total $1,205,040 $1,205,040Related Questions
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