If possible, show the calculation. Thank You! Collins Industries, a manufacturer

Question

If possible, show the calculation. Thank You!

Collins Industries, a manufacturer of parts for the automotive industry, closes its books and prepares financial statements at the end of each year. Collins Industries has the following trial balance of accounts at December 31,2011 Collins Industries Trial Balance of Account Balances 31-Dec-l1 DebitCredit Cash and marketable securities Accounts and notes receivable Raw materials inventory-all direct materials (12/31/2010) Work-in-process inventory (1 40,000 260,000 20,000 180,000 175,000 2,006,941 goods inventory (12/31/2010) Property, plant, and equipment (net) Accounts payable Notes payable (Due March 31, 2012) Bonds payable (6% per annum, due December 31, 2015) Paid -in capital Retained Earnings Sales Purchases of direct materials 780,656 40,000 50,000 500,000 100,000 1046,441 2.040,750 Direct labor Indirect factory labor Office salaries Sales salaries Utilities Property taxes Rent Maintenance and repairs, factory equipment Insurance expense Depreciation expense Freight expenses for materials purchases and sales Finished goods warehousing costs Quality inspection-manufacturing Bond interest expense Interest expense (notes payable) 682.650 10,000 325,006 100,000 150,000 50,000 120,000 23,000 10,000 40,000 120,000 80,000 43,000 25,000 64,000 22,500 10,750 Totals 4,557,847 4,557,847

Explanation / Answer

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Collins Industries Adjustment entries for the year ended December 31, 2011 Ref Account title Debit credit 1 Sales 150000 Accounts receivable 150000 (Sales of December recorded in January 2012) Accounts receivable 10000 Sales 10000 (Allowance grated for damaged goods) 2 Interest expense 3000 Accounts payable 3000 (Interest @6% on note payable of $50,000) 3 Prepaid expenses 2000 Property taxes 2000 (Property taxes for Jan.'2012 - Oct.'2012 accounted) 4 Bond interest expense 7500 Interest payable 7500 (Bond interest @6% p.a., for the last quarter) 5 Freight on raw material purchases 30000 Freight on sales 13000 Freight expenses for material purchases and sales 43000 (Freight expenses bifurcated) 7 Prepaid expenses 40000 Insurance expense 40000 (Insurance expense paid for Jan.2012 to June.2012 accounted) 8 Sales discounts 40000 Purchase of raw material 30000 Discounts 10000 (Discounts amount bifurcated ) 9 Property, plant and equipment 6000 Direct labor 6000 (Direct labor utilised for installation of equipment accounted) Depreciation expense 375 Accumulated depreciation - equipment 375 (Depreciation on the labor cost accounted) Property, plant and equipment 5000 Maintenance and repairs - factory equipment 5000 (Inventory of material utilised for installation of equipment accounted) Depreciation expense 1042 Accumulated depreciation - equipment 1042 (Depreciation on the inventory cost accounted) 10 Direct labor 40000 Office salaries 15000 Sales salaries 15000 Salaries and wages payable 70000 (Accrued salaries and wages accounted) a Raw materials 682650 Purchase of raw materials 652650 Freight on raw material purchases 30000 (Cost of raw materials purchases transferred to raw material inventory) b Cost of goods sold 677650 Raw material 677650 (Raw material consumed during the year accounted) c Cost of goods sold 835806 Direct labor 359006 Indirect factory labor 100000 Utilities 120000 Property taxes   (80% for manufacturing) 16800 Insurance expense (70% for manufacturing) 56000 Depreciation expense 60000 Finished goods wahrehousing costs 25000 Maitnenance and repair - factory equipment 35000 Quality inspection - manufacturing 64000

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