Comprehensive Problem 9 (Part Level Submission) Kenseth Corporation\'s unadjuste

Question

Comprehensive Problem 9 (Part Level Submission) Kenseth Corporation's unadjusted trial balance at December 1, 2014, is presented below. Debit Credit Cash Accounts Receivable Notes Receivable Interest Receivable Inventory Prepaid Insurance Land Buildings Equipment Patent Allowance for Doubtful Accounts Accumulated Depreciation-Buildings Accumulated Depreciation-Equipment Accounts Payable Salaries and Wages Payable Notes Payable (due April 30, 2015) Interest Payable Notes Payable (due in 2020) Common Stock Retained Earnings Dividends Sales Revenue Interest Revenue Gain on Disposal of Plant Assets Bad Debt Expense Cost of Goods Sold Depreciation Expense Insurance Expense Interest Expense Other Operating Expenses $27,250 35,030 9,200 0 36,090 3,600 21,200 156,000 60,000 9,810 $510 52,000 24,000 28,200 12,900 0 35,360 50,900 33,800 14,700 929,700 0 631,900 0 0 61,090

Explanation / Answer

Date General Journal Debit($) Credit($) Calculations Dec-02 Equipment 18000 Cash 18000 Dec-02 Cash 3540 Acumulated depreciation 2410 1950+460 Gain on sale of equipment 1050 Equipment 4900 Dec-15 Accounts Receivable 5340 Sales 5340 Cost of goods sold 3480 Inventory 3480 Dec-23 Salaries & Wages expense 6660 Cash 6660 ADJUSTING ENTRIES Serial No. General Journal Debit($) Credit($) 1) Bad debt expense 4180 Allowance for Bad Debt 4180 2) Interest Receivable 552 9200*8%*(9/12) Interest Revenue 552 3) Insurance expense 2400 3600*(4/6) Prepaid Insurance 2400 4) Depreciation expense 4180 (156000-30600)/30 Accumulated depreciation - building 4180 5) Depreciation expense 10800 ((60000-60000*10%)/5) Accumulated depreciation - equipment 10800 6) Depreciation expense 269 ((18000-1860)/5)*(1/12) Accumulated depreciation - equipment 269 7) Amortization expense-Patent 1090 9810/9 Patent 1090 8) Salaries & wages expense 2120 Salaries & wages payable 2120 9) Interest Expense 4826 (12900+35360)*10% Interest Payable 4826 10) Income tax expense 14730 Income Tax payable 14730

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