Problem 2-8 (Algo) Adjusting entries [LO2-6] Excalibur Corporation sells video games for personal computers. The unadjusted...
Problem 2-8 (Algo) Adjusting entries [LO2-6]
Excalibur Corporation sells video games for personal computers. The unadjusted trial balance as of December 31, 2021, appears below. December 31 is the company’s reporting year-end. The company uses the perpetual inventory system.
| Account Title | Debits | Credits | |||||
| Cash | 22,700 | ||||||
| Accounts receivable | 31,900 | ||||||
| Supplies | 0 | ||||||
| Prepaid rent | 0 | ||||||
| Inventory | 59,000 | ||||||
| Office equipment | 66,150 | ||||||
| Accumulated depreciation | 9,400 | ||||||
| Accounts payable | 25,500 | ||||||
| Salaries payable | 2,400 | ||||||
| Notes payable | 24,000 | ||||||
| Common stock | 74,000 | ||||||
| Retained earnings | 20,600 | ||||||
| Dividends | 9,200 | ||||||
| Sales revenue | 174,000 | ||||||
| Cost of goods sold | 89,000 | ||||||
| Interest expense | 0 | ||||||
| Salaries expense | 31,750 | ||||||
| Rent expense | 13,400 | ||||||
| Supplies expense | 1,400 | ||||||
| Utilities expense | 5,400 | ||||||
| Totals | 329,900 | 329,900 | |||||
Information necessary to prepare the year-end adjusting entries
appears below.
- The office equipment was purchased in 2019 and is being depreciated using the straight-line method over an nine-year useful life with no salvage value.
- Accrued salaries at year-end should be $3,600.
- The company borrowed $24,000 on September 1, 2021. The principal is due to be repaid in 12 years. Interest is payable twice a year on each August 31 and February 28 at an annual rate of 12%.
- The company debits supplies expense when supplies are purchased. Supplies on hand at year-end cost $440.
- Prepaid rent at year-end should be $1,600.
Required:
Prepare the necessary December 31, 2021, adjusting entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.)
- The office equipment was purchased in 2019 and is being depreciated using the straight-line method over an nine-year useful life with no salvage value.
Note: Enter debits before credits.
|
- Accrued salaries at year-end should be $3,600.
Note: Enter debits before credits.
|
- The company borrowed $24,000 on September 1, 2021. The principal is due to be repaid in 12 years. Interest is payable twice a year on each August 31 and February 28 at an annual rate of 12%.
Note: Enter debits before credits.
|
- The company debits supplies expense when supplies are purchased. Supplies on hand at year-end cost $440.
Note: Enter debits before credits.
|
- Prepaid rent at year-end should be $1,600.
Note: Enter debits before credits.
|
Homework Answers
| Transaction | General Journal | Debit | Credit | |
| 1 | Depreciation expense | 7350 | =66150/9 | |
| Accumulated depreciation | 7350 | |||
| 2 | Salaries expense | 1200 | =3600-2400 | |
| Salaries payable | 1200 | |||
| 3 | Interest expense | 960 | =24000*12%*4/12 | |
| Interest payable | 960 | |||
| 4 | Supplies | 440 | ||
| Supplies expense | 440 | |||
| 5 | Prepaid rent | 1600 | ||
| Rent expense | 1600 |
Add Answer to:
Problem 2-8 (Algo) Adjusting entries [LO2-6]
Excalibur Corporation sells video games for personal computers.
The unadjusted...
Excalibur Corporation sells video games for personal computers. The unadjusted trial balance as of December 31,...
Excalibur Corporation sells video games for personal computers.
The unadjusted trial balance as of December 31, 2021, appears
below. December 31 is the company’s reporting year-end. The company
uses the perpetual inventory system.
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Excalibur Corporation sells video games for personal computers.
The unadjusted trial balance as of December 31, 2021, appears
below. December 31 is the company’s reporting year-end. The company
uses the perpetual inventory system.
Credits Debits 74,810 26,000 63,000 79,000 Account Title Cash Accounts receivable Supplies Prepaid rent Inventory Office equipment Accumulated depreciation Accounts payable Salaries payable Notes payable Common stock Retained earnings Dividends Sales revenue Cost of goods sold Interest expense Salaries expense Rent expense Supplies expense Utility expense Totals...
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LDW Corporation sells video games for personal computers. The unadjusted trial balance as of December 31, 2021, appears below. December 31 is the company's reporting year-end. The company uses the perpetual inventory system. Credits Debits 24,200 33,400 Oc 74,000 61,800 Account Title Cash Accounts receivable Supplies Prepaid rent Inventory Office equipment Accumulated depreciation Accounts payable Salaries payable Notes payable Common stock Retained earnings Dividends Sales revenue Cost of goods sold Interest expense Salaries...
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Excalibur Corporation sells video games for personal computers. The unadjusted trial balance as of December 31, 2021, appears below. December 31 is the company's reporting year-end. The company uses the perpetual inventory system. Credits Debits 51.760 21,00 48,eee 59,eee count Titl Cash Accounts receivable Supplies Prepaid rent Inventory office equipment Accumulated depreciation Accounts payable Salaries payable Notes payable Common stock Retained earnings Dividends Sales revenue Cost of goods sold Interest expense Salaries expense Rent expense Supplies expense Utility expense Totals...
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Need some help with this problem, mainly on the Part A, D and E.
Adjusting Entries are hella confusing.
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