Eric Shehan is a student working on an internship at Mahon Ltd. On December 31, 2020, the company had its year end. Eric’s boss brought him the following information:
Accounts Payable | $217,000 | Wages Expense | $359,000 | |||
---|---|---|---|---|---|---|
Cash | 115,000 | Notes Receivable | 200,000 | |||
Notes Payable | 251,000 | Rent Expense | 33,000 | |||
Inventory | 307,000 | Dividends Declared | 178,000 | |||
Common Shares | 349,000 | Supplies | 11,000 | |||
Sales Revenue | 3,432,000 | Insurance Expense | 16,000 | |||
Retained Earnings (at January 1, 2020) | 1,076,000 | Equipment | 1,671,000 | |||
Cost of Goods Sold | 2,031,000 | Accumulated Depreciation, Equipment | 161,000 | |||
Utilities Expense | 85,000 | Miscellaneous Expense | 33,000 | |||
Interest Revenue | 9,000 | Unearned Revenue | 28,000 | |||
Accounts Receivable | 423,000 | Advertising Expense | 53,000 | |||
Interest Expense | 8,000 |
These account amounts are correct, but Eric’s boss advised him that the information did not reflect the following information:
1. | Accrued interest of $5,000 on the notes receivable. | |
2. | Employees earned $80,000 in bonuses based on achieving sales targets. These are payable on January 10, 2021. | |
3. | Accrued interest on the note payable amounting to $5,000 is due in January 2021. | |
4. | As of December 31, 2020, the supplies still on hand had a cost of $6,000. | |
5. | The insurance expense includes $3,000 in premiums related to coverage for 2021. | |
6. | Depreciation for 2020 is $167,000 on the equipment. | |
7. | The company’s board declared additional dividends of $251,000, which are payable to shareholders on January 15, 2021. |
Determine the amounts that would appear in an adjusted trial balance for Mahon Ltd. as at December 31, 2020.
Prepare a statement of income for the year ended December 31, 2020.
Calculate the amount of retained earnings as at December 31, 2020.
Prepare a classified statement of financial position as at December 31, 2020. (Note: The note receivable and note payable are due in 2021.) (List Current Assets in order of liquidity.)
Eric Shehan is a student working on an internship at Mahon Ltd. On December 31, 2020, the company had its year end. Eric's boss brought him the following information: Accounts Payable Cash Notes Payable Inventory Common Shares Sales Revenue Retained Earnings (at January 1, 2020) Cost of Goods Sold Utilities Expense Interest Revenue Accounts Receivable Interest Expense $219,000 Wages Expense 115,000 Notes Receivable 247,000 Rent Expense 311,000 Dividends Declared 352,000 Supplies 3,424,000 Insurance Expense 1,117,000 Equipment 2,049,000 Accumulated Depreciation, Equipment...
Please solve this asap thanks. Eric Shehan is a student working on an internship at Mahon Ltd. On December 31, 2020, the company had its year end. Eric's boss brought him the following information: Accounts Payable Cash Notes Payable Inventory Common Shares Sales Revenue Retained Earnings (at January 1, 2020) Cost of Goods Sold Utilities Expense Interest Revenue Accounts Receivable Interest Expense $219,000 Wages Expense 115,000 Notes Receivable 247,000 Rent Expense 311,000 Dividends Declared 352,000 Supplies 3,424,000 Insurance Expense 1,117,000...
Need the answers asap to this problem pls explain and put steps Application Problem 3-15B a-d Eric Shehan is a student working on an internship at Mahon Ltd. On December 31, 2020, the company had its year end. Eric's boss brought him the following information: Accounts Payable Cash Notes Payable Inventory Common Shares Sales Revenue Retained Earnings (at January 1, 2020) Cost of Goods Sold Utilities Expense Interest Revenue Accounts Receivable Interest Expense $219,000 Wages Expense 116,000 Notes Receivable 248,000...
Application Problem -153ad Eric Shehan is a student working on an internship at Mabon Ltd. On December 31, 2020, the company hadits year and Eric's boss brought him the following information Accounts Payable Cash Notes Payable Inventory Common Shares Sales Revenge Retained Earnings (Manuary 1, 2020) Cost of Goods Sold s Expense Interest Revenue Accounts Receivable Interest Expense $219.000 Wapes Expense 117.000 Notes Receivable 251.000 Rent Expense 313,000 Dividends Declared 351.000 Supplies 3.396.000 Insurance Expense 1.158.000 Equipment 2.064,000 Accumulated Depreciation...
Please prepare the closing entry. COMP4-1 (Algo) Recording Transactions (Including Adjusting and Closing Entries), Preparing Financial Statements, and Performing Ratio Analysis LO4-1, 4-2, 4-3, 4-4 (GL) Brothers Mike and Tim Hargenrater began operations of their tool and die shop (H & H Tool, Inc.) on January 1, 2019. The annual reporting period ends December 31. The trial balance on January 1, 2020, follows: Credit 16,000 H & H Tool, Inc. Trial Balance on January 1, 2020 Account Titles Debit Cash...
Prepare adjusting entries. Labs Debit Credit Supplies $14,400 Prepaid insurance 3,600 Equipment 37,800 Notebook Accumulated depreciation equipment $ 9,450 Unearned revenue 9,300 Notes payable 30,000 Rent revenue 30,000 Salaries expense 14,000 An analysis of the accounts shows the following: 1. The equipment has a four-year useful life. 2. One quarter of the unearned rent is still unearned on March 31, 2021. 3. The note payable has an interest rate of 6%. Interest is paid every June 30 and December 31....
Required information Problem 2-4 (Algo) Accounting cycle; adjusting entries through post-closing trial balance [LO2-4, 2-6, 2-7, 2-8] [The following information applies to the questions displayed below.] Pastina Company sells various types of pasta to grocery chains as private label brands. The company's reporting year-end is December 31. The unadjusted trial balance as of December 31, 2021, appears below. Account Title Debits Credits Cash 34,100 Accounts receivable 42,000 Supplies 2,500 Inventory 62,000 Notes receivable 22,000 Interest receivable 0 Prepaid rent...
Problem 2-4 (Algo) Accounting cycle; adjusting entries through post-closing trial balance [LO2-4, 2-6, 2-7, 2-8] [The following information applies to the questions displayed below.] Pastina Company sells various types of pasta to grocery chains as private label brands. The company's reporting year-end is December 31. The unadjusted trial balance as of December 31, 2021, appears below. Account Title Debits Credits Cash 34,100 Accounts receivable 42,000 Supplies 2,500 Inventory 62,000 Notes receivable 22,000 Interest receivable 0 Prepaid rent 1,900 Prepaid...
Problem 2-4 (Algo) Accounting cycle; adjusting entries through post-closing trial balance [LO2-4, 2-6, 2-7, 2-8] [The following information applies to the questions displayed below.] Pastina Company sells various types of pasta to grocery chains as private label brands. The company's reporting year-end is December 31. The unadjusted trial balance as of December 31, 2021, appears below. Account Title Debits Credits Cash 34,100 Accounts receivable 42,000 Supplies 2,500 Inventory 62,000 Notes receivable 22,000 Interest receivable 0 Prepaid rent 1,900 Prepaid...
Problem 2-4 (Algo) Accounting cycle; adjusting entries through post-closing trial balance [LO2-4, 2-6, 2-7, 2-8] [The following information applies to the questions displayed below.] Pastina Company sells various types of pasta to grocery chains as private label brands. The company's reporting year-end is December 31. The unadjusted trial balance as of December 31, 2021, appears below. Account Title Debits Credits Cash 34,100 Accounts receivable 42,000 Supplies 2,500 Inventory 62,000 Notes receivable 22,000 Interest receivable 0 Prepaid rent 1,900 Prepaid...