The unadjusted trial balance of the Manufacturing Equitable at
December 31, 2018, the end of its fiscal year, included the
following account balances. Manufacturing’s 2018 financial
statements were issued on April 1, 2019.
Accounts receivable | $ | 98,000 |
Accounts payable | 38,800 | |
Bank notes payable | 638,000 | |
Mortgage note payable | 1,290,000 | |
Other information:
Required:
1. Prepare any necessary adjusting journal entries
at December 31, 2018, pertaining to each item of other information
(a–d).
2. Prepare the current and long-term liability
sections of the December 31, 2018, balance sheet.
in $ | |||
Event | Accounts Title | Dr | Cr |
a) | Interest expenses | 23925 | |
Interest Payable (638000*9%*5/12) | 23925 | ||
(being interest expense recorded) | |||
b) | No journal entry required | ||
c) | Accounts Receivable | $16,500 | |
Deferred Revenue/Advance from Cutomers | $16,500 | ||
d) | Rent Revenue (38400/12*10) | 32000 | |
Unearned Rent revenue | 32000 | ||
(being rent received in advance adjsuted) | |||
Balance sheet (Partial) | |||
For the year ended Dec 31 2018 | |||
Current Liabilities | |||
Accounts payable | $38,800 | ||
Bank Notes payable | $638,000 | ||
Current portion of long term debt | 275000 | ||
Interest payable | 23925 | ||
Deferred Revenue/Advance from Customers | $16,500 | ||
Unearned Rent revenue | 32000 | ||
Total current liabilities | $1,024,225 | ||
Long term liabilities | |||
Mortgage Notes payable | $1,015,000 | ||
If any doubt please comment. If satisfied rate |
The unadjusted trial balance of the Manufacturing Equitable at December 31, 2018, the end of its...
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