Use the following information to prepare adjusting entries for Gilbert Holdings: |
On April 1, 2019, Gilbert Holdings signed a 4.30% bank loan due in 4 years. This is the only outstanding note payable. |
Prepaid insurance represents a 4-month insurance policy purchased on December 1. |
On October 1, 2019, Gilbert Holdings paid $11,880 for a 9-month lease for office space. |
Unearned revenue represents a 12-month contract for consulting services. The payment was received on July 1, 2019. |
Supplies on hand total $10,480. |
Equipment is depreciated on a straight-line basis; residual value is estimated to be $15,000 with an estimated service life of 10 years. The assets were held the entire year. |
On November 1, Gilbert Holdings issued Monroe Supplies an 3-month note receivable at a 8.2% annual interest rate. |
The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The aging schedule of accounts receivable must be completed to determine management's desired balance for 2019. |
Accrued wages totaling $35,838 were unpaid and unrecorded at December 31, 2019. |
Utility costs incurred but unrecorded for the month of December were estimated to be $2,561. |
Assumptions that can be made: |
Unadjusted | ||
Account Title | Trial Balance | |
DR | CR | |
Cash | 67,188 | |
Accounts Receivable | 265,584 | |
Allowance for Doubtful Accounts | 11,194 | |
Interest Receivable | ||
Note Receivable | 113,180 | |
Merchandise Inventory | 194,172 | |
Prepaid Insurance | 7,128 | |
Prepaid Rent | 11,880 | |
Supplies | 30,096 | |
Equipment | 277,464 | |
Accumulated Depreciation - Equipment | 29,304 | |
Accounts Payable | 27,746 | |
Salaries & Wages Payable | ||
Unearned Revenue | 32,000 | |
Interest Payable | ||
Utilities Payable | ||
Note Payable (final payment due 2023) | 188,100 | |
Common Stock | 145,200 | |
Retained Earnings | 224,400 | |
Dividends | 64,680 | |
Sales | 2,773,980 | |
Consulting Revenue | ||
Sales Returns and Allowances | 15,840 | |
Sales Discounts | 34,056 | |
Cost of Goods Sold | 1,888,788 | |
Salaries & Wages Expense | 430,056 | |
Depreciation Expense - Equipment | ||
Bad Debt Expense | ||
Insurance Expense | ||
Rent Expense | ||
Supplies Expense | ||
Utilities Expense | 31,812 | |
Interest Revenue | ||
Interest Expense | ||
3,431,924 | 3,431,924 | |
Net Income |
Adjustment journal entries | |||||
Date | Account Titles | Debit | Credit | ||
Dec.31,2019 | Interest Expense | $6,066.00 | |||
Interest Payable | $6,066.00 | ||||
Dec.31,2019 | Insurance Expense | $1,782.00 | |||
Prepaid Insurance | $1,782.00 | ||||
Dec.31,2019 | Rent Expense | $3,960.00 | |||
Prepaid Rent | $3,960.00 | ||||
Dec.31,2019 | Unearned Revenue | $16,000.00 | |||
Consulting Revenue | $16,000.00 | ||||
Dec.31,2019 | Supplies Expense | $19,616.00 | |||
Supplies | $19,616.00 | ||||
Dec.31,2019 | Depreciation Expense | $26,246.00 | |||
Accumulated Depreciation - Equipment | $26,246.00 | ||||
Dec.31,2019 | Interest Receivable | $1,547.00 | |||
Interest Income | $1,547.00 | ||||
Dec.31,2019 | Salaries and Wages Expense | $35,838.00 | |||
Salaries and Wages Payable | $35,838.00 | ||||
Dec.31,2019 | Utilities Expense | $2,561.00 | |||
Utilities Payable | $2,561.00 | ||||
Working | |||||
Interest Expense on Note payable = [$188100 x 4.30% /12 months] x 9 months = $6066 | |||||
Depreciation expense = [Cost - residual value]/useful life = [$277464 - $15000]/10 = $26246 | |||||
Interest Income on Note Receivable = [$113180 x8.20%/12 months] x 2 months = $1547 | |||||
Note : Bad debt expense can not booked as information give is not complete. | |||||
Use the following information to prepare adjusting entries for Gilbert Holdings: On April 1, 20...
Use the following adjusting entries to complete the
worksheet, prepare an income statement, statement of retained
earnings, closing entries, and balance sheet.
Broomfield Company
Adjusting Journal Entries
For the Year Ended December 31, 2019
Account Titles
DR
CR
a.
Interest
Expense
15,920
Interest
Payable
15,920
b.
Insurance Expense
19,152
Prepaid
Insurance
19,152
c.
Rent
Expense
23,940
Prepaid
Rent
23,940
d.
Unearned
Revenue
12,000
Consulting Revenue
12,000
e.
Supplies
Expense
116,622
Supplies...
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I need help with making sure the adjusting journal entries are
correct and I'm not sure why the adjusted trail balances aren't
equaling each other. Please help with both! The information for the
journal entries is the first posted piece of information starting
with On July 1, 2019.
| a. Use the following information to prepare adjusting entries for Broomfield Industries: On July 1, 2019, Broomfield Industries signed a 4.2% bank loan due in 3 years. This is the only...
can you help me spot my errors in the assumption?
Use the following information to prepare adjusting entries for Broomfield Industries: On July 1, 2019, Broomfield Industries signed a 4.2% bank loan due in 3 years. This is the only outstanding note payable. b. Prepaid insurance represents a 12-month insurance policy purchased on May 1. On November 1, 2019, Broomfield Industries paid $12,780 for a 4-month lease for office space. Unearned revenue represents a 8-month contract for consulting services. The...
For each of the following separate cases, prepare the required December 31 year-end adjusting entries. Entries can draw from this partial chart of accounts: Interest Receivable; Prepaid Insurance; Accumulated Depreciation Equipment; Wages Payable; Unearned Revenue; Consulting Revenue; Interest Revenue; Wages Expense; Insurance Expense; Interest Expense; and Depreciation Expense-Equipment. a. Depreciation on the company's wind turbine equipment for the year is $5,000. b. The Prepaid Insurance account for the solar panels had a $2,000 debit balance at December 31 before adjusting for the...
C. ADIN C. ADJUSTING JOURNAL ENTRIES (14 Marks) he unadjusted trial balance of Darcy Consulting Services at December 31, Credit Debit $4,HOO 10,400 2.000 1,000 400 16,500 $2,400 Cash Accounts receivable Prepaid insurance Prepaid rent Office supplies Equipment Accumulated depreciation Salaries payable Interest payable Unearned service revenue Note payable Ted Darcy, capital Ted Darcy, drawings Service revenue Salaries expense Depreciation expense Rent expense Insurance expense Office supplies expense Interest expense 600 8,000 15,200 3,000 32,700 20,500 300 $58.900 $58.900 Given...
Using the information in the Worksheet (1) tab, Aging
Analysis (2) tab, and Adjustments (3) tab, prepare the adjusting
journal entries for the period. Record the entries in the
Adjusting Journal Entries (4) tab. (Round all
numbers to the nearest dollar.) SHOW YOUR WORK FOR THE ADJUSTMENT
IN THE CELL OR YOU WILL NOT RECEIVE CREDIT FOR THE ENTRY.
Use formulas and link the values to the adjustment.
Adjusting Journal Entries For the Year Ended December 31,2019 Account Titles DR...
this is my assumption and trial balance. I added the
adjustments but i made a mistake in creating my adjustments can you
correct my adjustments? I realized I madd a mistake because my net
income doesn’t equal from my income statement to my balance sheet.
can you also provide me with the correct income statment by
creating an entire worksheet
Use the following information to prepare adjusting entries for Broomfield Industries: On July 1, 2019, Broomfield Industries signed a 4.2%...
Required: 1. Prepare the adjusting entries on the Trial
Balance tab, and complete the worksheet on the Trial Balance
tab
2. On the Financial Statements tab, prepare the income
Statement, Retained Earnings Statement, and Balance Sheet for the
2020 year
3. On the Tab complete T-Accounts for all accounts. The
ending balances in every should agree to the balances on the
Balance Sheet as of December 31, 2020
Prepaid Insurance 1,000 89,020 Accounts Receivable 103,100 103 100 Equipment 100,000 Allowance...
Required: 1. Prepare the adjusting entries on the Trial Balance
tab, and complete the worksheet on the Trial Balance tab
2. On the Financial Statements tab, prepare the income
Statement, Retained Earnings Statement, and Balance Sheet for the
2020 year
3. On the Tab complete T-Accounts for all accounts. The ending
balances in every should agree to the balances on the Balance Sheet
as of December 31, 2020
Prepaid Insurance 1,000 89,020 Accounts Receivable 103,100 103 100 Equipment 100,000 Allowance...