Shamsud Ltd. operates on a calendar-year basis. At the beginning of December 2016, the company had...
Shamsud Ltd. operates on a calendar-year basis. At the beginning of December 2016, the company had the following current liabilities on its books:
Accounts payable $85,000
Rent payable $10,000
Warranty provision $12,000
Unearned revenue $14,000
In December, the following events occurred:
1. Shamsud purchased a new computer system on account at a cost of $28,000, payable on January 15, 2017. In addition to this, $4,000 was paid in cash to have the new system installed and customized to the company's requirements.
2. The company purchased inventory for $93,000 on account and made payments of $86,000 to its suppliers.
3. The rent that was payable at the beginning of December represented the payment that should have been made in November. In December, Shamsud paid the past rent owed, as well as the rent for December and January.
4. By December 31, the company had earned $5,000 of the service revenue that was received in advance from customers.
5. Shamsud's employees are paid a total of $2,000 per day. Three work days elapsed between the last payday and the end of the fiscal year. (Ignore deductions for income tax, CPP, and EI).
6. The company's products are sold with a two-year warranty. Shamsud estimates its warranty expense for the year (not previously recorded) as $16,000. During December, it paid $1,200 in warranty claims.
REQUIRED:
a.) Prepare the journal entries to record the December transactions and adjustments. (Ignore the amounts that the company pays for its hare of CPP and EI).
b.) Prepare the current liability section of Shamsud's statement of financial position on December 31, 2016.
Homework Answers
Add Answer to:
Shamsud Ltd. operates on a calendar-year basis. At the beginning
of December 2016, the company had...
Lyrtricks Ltd., which has a December 31 year end, had the following transactions in December 2020...
Lyrtricks Ltd., which has a December 31 year end, had the following transactions in December 2020 and January 2021: 2020 Dec. 1 Dec. 31 The company borrowed $135,000 from a bank on a five-year loan payable. The terms of the loan stipulate that Lyrtricks must repay 1/5 of the principal every November 30 plus the interest accrued to that date. The loan bears interest at 8% per annum. Recorded employee wages for December. The wages earned by employees amounted to...
Assignment #10 The general ledger of Sunrise Ltd.’s shows the following selected liability accounts on December...
Assignment #10 The general ledger of Sunrise Ltd.’s shows the following selected liability accounts on December 1, 2019: Accounts payable $42,500 CPP payable $1,980 EI payable $902 Sales tax payable $6,224 Employee income tax payable $7,337 Unearned revenue $25,990 Sunrise Security Equipment and Services Ltd.’s business year ends on December 31. The company is using a perpetual inventory system. The following transactions occurred during the month of December: Date Description Dec, 1 Issued a three-month, 6% note payable in exchange...
Wascana Ltd. is a small wholesaler of restaurant supplies. The company’s post-closing trial balance at December...
Wascana Ltd. is a small wholesaler of restaurant supplies. The
company’s post-closing trial balance at December 31, 2017, the end
of its fiscal year, is presented below:
The company had the following transactions during January 2018.
When recording these transactions, use the item number listed in
lieu of the date and also use that same item number if recording a
subsequent adjustment pertaining to that item.
Prepare T accounts and enter the December 31 balances.
Question 3 Wascana Ltd. is...
Wascana Ltd. is a small wholesaler of restaurant supplies. The company’s post-closing trial balance at December...
Wascana Ltd. is a small wholesaler of restaurant supplies. The
company’s post-closing trial balance at December 31, 2017, the end
of its fiscal year, is presented below:
WASCANA LTD.
Post-Closing Trial Balance
December 31, 2017
Debit
Credit
Cash
$73,000
Accounts receivable
450,000
Allowance for doubtful accounts
22,500
Inventory
370,000
Equipment
1,800,000
Accumulated depreciation—equipment
480,000
Accounts payable
290,000
Interest payable
5,000
Employee income tax payable
47,000
CPP payable
31,000
EI payable
12,000
Provisions
38,000
Unearned revenue
11,000
Bank loan payable
1,500,000...
Gary’s TV had the following accounts and amounts in its financial statements on December 31, 2016....
Gary’s TV had the following accounts and amounts in its financial statements on December 31, 2016. Assume that all balance sheet items reflect account balances at December 31, 2016, and that all income statement items reflect activities that occurred during the year then ended. Interest expense $ 30,000 Paid-in capital 89,000 Accumulated depreciation 29,000 Notes payable (long-term) 283,000 Rent expense 70,000 Merchandise inventory 839,000 Accounts receivable 192,000 Depreciation expense 10,000 Land 124,000 Retained earnings 490,000 Cash 137,000 Cost of goods...
Gary’s TV had the following accounts and amounts in its financial statements on December 31, 2016....
Gary’s TV had the following accounts and amounts in its financial statements on December 31, 2016. Assume that all balance sheet items reflect account balances at December 31, 2016, and that all income statement items reflect activities that occurred during the year then ended. Interest expense $ 32,000 Paid-in capital 84,000 Accumulated depreciation 26,000 Notes payable (long-term) 285,000 Rent expense 70,000 Merchandise inventory 833,000 Accounts receivable 185,000 Depreciation expense 11,000 Land 120,000 Retained earnings 420,150 Cash 135,000 Cost of goods...
Wascana Ltd. is a small wholesaler of restaurant supplies. The company’s post-closing trial balance at December...
Wascana Ltd. is a small wholesaler of restaurant supplies. The company’s post-closing trial balance at December 31, 2017, the end of its fiscal year, is presented below: WASCANA LTD. Post-Closing Trial Balance December 31, 2017 Debit Credit Cash $73,000 Accounts receivable 450,000 Allowance for doubtful accounts 22,500 Inventory 370,000 Equipment 1,800,000 Accumulated depreciation—equipment 480,000 Accounts payable 290,000 Interest payable 5,000 Employee income tax payable 47,000 CPP payable 31,000 EI payable 12,000 Provisions 38,000 Unearned revenue 11,000 Bank loan payable 1,500,000...
Brokeback Towing Company is at the end of its accounting year, December 31, 2016. The following...
Brokeback Towing Company is at the end of its accounting year, December 31, 2016. The following data that must be considered were developed from the company's records and related documents: a. On July 1, 2015, a two-year insurance premium on equipment in the amount of $408 was paid and debited in full to Prepaid Insurance on that date. Coverage began on July 1. b. At the end of 2015, the unadjusted balance in the Supplies account was $1,000. A physical...
Gary's TV had the following accounts and amounts in its financial statements on December 31, 2016....
Gary's TV had the following accounts and amounts in its financial statements on December 31, 2016. Assume that all balance sheet items reflect account balances at December 31, 2016, and that all income statement items reflect activities that occurred during the year then ended. Interest expense Paid-in capital Accumulated depreciation Notes payable (long-term) Rent expense Merchandise inventory Accounts receivable Depreciation expense Land Retained earnings Cash Cost of goods sold Equipment Income tax expense Accounts payable Sales revenue $ 35,000 88,000...
A company had no office supplies at the beginning of the year. During the year, the...
A company had no office supplies at the beginning of the year. During the year, the company purchased $400 worth of office supplies. On December 31, $150 worth of office supplies remained. How much should the company report as office supplies expense for the year? Multiple Choice O $150 о O $250 o $200 O $550 O $400 On April 30, 2014, a three-year insurance policy was purchased for $19,260 with coverage to begin immediately. What is the amount of...
Lyrtricks Ltd., which has a December 31 year end, had the following transactions in December 2020 and January 2021: 2020 Dec. 1 Dec. 31 The company borrowed $135,000 from a bank on a five-year loan payable. The terms of the loan stipulate that Lyrtricks must repay 1/5 of the principal every November 30 plus the interest accrued to that date. The loan bears interest at 8% per annum. Recorded employee wages for December. The wages earned by employees amounted to...
Wascana Ltd. is a small wholesaler of restaurant supplies. The
company’s post-closing trial balance at December 31, 2017, the end
of its fiscal year, is presented below:
The company had the following transactions during January 2018.
When recording these transactions, use the item number listed in
lieu of the date and also use that same item number if recording a
subsequent adjustment pertaining to that item.
Prepare T accounts and enter the December 31 balances.
Question 3 Wascana Ltd. is...
Wascana Ltd. is a small wholesaler of restaurant supplies. The
company’s post-closing trial balance at December 31, 2017, the end
of its fiscal year, is presented below:
WASCANA LTD.
Post-Closing Trial Balance
December 31, 2017
Debit
Credit
Cash
$73,000
Accounts receivable
450,000
Allowance for doubtful accounts
22,500
Inventory
370,000
Equipment
1,800,000
Accumulated depreciation—equipment
480,000
Accounts payable
290,000
Interest payable
5,000
Employee income tax payable
47,000
CPP payable
31,000
EI payable
12,000
Provisions
38,000
Unearned revenue
11,000
Bank loan payable
1,500,000...
Brokeback Towing Company is at the end of its accounting year, December 31, 2016. The following data that must be considered were developed from the company's records and related documents: a. On July 1, 2015, a two-year insurance premium on equipment in the amount of $408 was paid and debited in full to Prepaid Insurance on that date. Coverage began on July 1. b. At the end of 2015, the unadjusted balance in the Supplies account was $1,000. A physical...
Gary's TV had the following accounts and amounts in its financial statements on December 31, 2016. Assume that all balance sheet items reflect account balances at December 31, 2016, and that all income statement items reflect activities that occurred during the year then ended. Interest expense Paid-in capital Accumulated depreciation Notes payable (long-term) Rent expense Merchandise inventory Accounts receivable Depreciation expense Land Retained earnings Cash Cost of goods sold Equipment Income tax expense Accounts payable Sales revenue $ 35,000 88,000...
A company had no office supplies at the beginning of the year. During the year, the company purchased $400 worth of office supplies. On December 31, $150 worth of office supplies remained. How much should the company report as office supplies expense for the year? Multiple Choice O $150 о O $250 o $200 O $550 O $400 On April 30, 2014, a three-year insurance policy was purchased for $19,260 with coverage to begin immediately. What is the amount of...
Most questions answered within 3 hours.
-
Identify 3 research scenarios that might provide a low,
medium, and high degree of variability in...
asked 20 minutes ago -
how
does gravity affect the trajectory of projectile? what would be the
shape of the trajactory...
asked 1 hour ago -
Two small plastic spheres are given positive electrical charges.
When they are a distance of 15.4...
asked 1 hour ago -
An acidic solution containing gold ions is
electrolyzed, producing gaseous oxygen (from water) at the anode...
asked 1 hour ago -
Assume that the population of Mexico is 128
million and that the population increases 1.01
percentannually....
asked 2 hours ago -
Can someone please help me add appropriate descriptive
comments to each line of code in the...
asked 2 hours ago -
Romeo wishes to throw a bouquet of flowers to Juliet, who is on
a second-story balcony,...
asked 3 hours ago -
Why is QE a controversial monetary policy tool.
A. It may lead to excessive inflation.B. By...
asked 3 hours ago -
Principles of Programming midterm study guide help!
1.)
______ Which of the following would reference the...
asked 3 hours ago -
A finite potential well has depth U0 = 2.78 eV . What is the
penetration distance...
asked 4 hours ago -
1. The bus bars of a power station are in two sections A and B
separated...
asked 4 hours ago -
Fiscal policy is the deliberate manipulation of taxes and
government spending to alter GDP, employment, inflation...
asked 5 hours ago