Question

It's one question but I have divided it into two parts. I was able to make the Balance Sheet ending Dec 31, 2018. But with this 2019 having issue journal entry since my balance is not matching... anyone's help with be highly appreciated. Journal Entry #23 is Tax expense is 21% of Income before Income Tax

Activities LibreOffice Calc May 21 08:29:0946.8'F Sunmer 2019 Mod 3 Excel Warkbook Assignment 1xdsx (read-only)- LibreOffice Calc File Fdit View Insert Farmat Styles Sheet Data Tacls Wincow Help 132 Credit Journal Entries: Debit 303,656 1 Accounts Payable Candy Earth, Co., is known for the candies. The business started up in Jan 2015 . Try to complete the Journal Entries for all 2019 transaction and adjustment info. No need for the dates. Sum up debit and credit so that they balance. The first journal entry has 10 been completed. 303,656 12 13 14 6 Transaction and Adjustment Data 7 1Paid the $303,656 owed on account at year end 2018 2Collected the $31,878 of accounts receivable due to them at year end 2018 19 3 Paid the interest of $28,000 that was payable at year end 2018 4 Paid the $9,510 in salaries owed at year end 2018 21 5 Made a payment on the mortgage note of $15,050 6 Paid $3,420 to renew their annual insurance policy on March 1, 2019 23 7 Paid the taxes owed of $46,878 at year end 2018 48Made a payment on the long-term note of $86,100 25 9Issued 1,800 shares of Common Stock on May 1, 2019 for $10 per share. 6 10 Purchased additional Furniture & Equipment on May 1, 2019 costing $63,000 due 27 to increased shipping activities for their growing online presence 28 11 Purchased inventory during the year that cost $1,764,640. The company owed 29 $409,300 on these purchases at year end 2019 12 purchased a new computerized sales system on June 1, 2019 for $81,440 in cash. The system has a useful economic life of 3 years and will be depreciated monthly using the straight line method. The system has a salvage value of $8,000 30 32 제 + トト Part A JEs & Background Info Part i. ' Accts & Acct Equster Part C . I nal 531 & 〔los ng JE Part U, Mur: ple-stes rc Str Pyt E St t ơr Het Ear Ps-F. Comparattee ial Sheet Part G tern ngs er s are at H rc Stmt at 05 t ngs Engl" ÍUSAİ May 21 08:33:06 46.8'F Activities LibreOffice Calc ▼ Sunmer 2019 Mod 3 Excel Warkbook Assignment 1xdsx (read-only)- LibreOffice Calc File Fdit View Insert Farmat Styles Sheet Data Tacls Wincow Help fz Depreciation expense needs to be recorded on ALL buildings, furniture and equipment, and he new computer system tyc rend 2019. Al item sare depreciated on a monthly basis using stra ghtline depreciation. The building has a = 33 13 sales of candies for 2019 were $2,564,230. At December 31, 2019, $51,278 of this amount was still listed as receivable 35 14 The total cost of the goods sold during 2019 was $1,689,756. 36 15 Supplies inventory of $4,729 was purchased with cash during 2019. Total supplies 37 inventory of $726 was still on hand at year end 2019 38Total Salaries Expense for the year was $135,422 and total interest expense was 16 $24,012. Salaries of $7,580 and interest of $24,012 are still payable at year end 2019 39 17 Depreciation expense needs to be recorded on ALL buildings, furniture and uipment, and the new computer system at year end 2019. All items are depreciated on a monthly basis using straight line depreciation. The building has a useful life of 40 years and the furniture and equipment is depreciated over 6 12 there is no salvage value on the buildings or the furniture and equipment. As oted above, the new sales system has a useful life of 3 years and has a salvage alue of $8,000 45 46 47 18 The Prepaid Insurance and the Supplies Inventory need to be adjusted at year end 2019 so that the proper amount for insurance expense and supplies expense is recorded. See items 6 and 15 for details. (If you adjusted the supplies in #15, do 48 491 50 not do it again) 51 19 Estimated income tax payable amounts for 2019 equaling $86,500 were paid 52 during the year as they became due 5320The company paid out cash dividends totaling $2,050 to its shareholders. 54 21 The company determined that a customer account was not collectible, and wrote 55 off $378 on December 31 56 22 The company believes that 2% of ending Accounts Receivable is a reasonable estimate of its Allowance for Doubtful Accounts balance. The Company uses the allowance method to record bad debts. 57 제 + トト Part A JEs & Background Info Part i. ' Accts & Acct Equster Part C . I nal 531 & 〔los ng JE Part U, Mur: ple-stes rc Str Pyt E St t ơr Het Ear Ps-F. Comparattee ial Sheet Part G tern ngs er s are at H rc Stmt at 05 t ngs Englis, IUSAİ

Answer 1

Particulars Debit Credit 1 Accounts Payable 303,656 Bank 303,656 2 Bank 31,878 31,878 Accounts Receivable 3 Accrued Interest 28,000 Bank 28,000 4 Accrued Salary 9,510 Bank 9,510 5 Mortgage Note 15,050 Bank 15,050 6 Prepaid Insurance 3,420 Bank 3,420 7 Provision for taxes 46,878 Bank 46,878 8 Long term note 86,100 Bank 86,100 9 Bank 18,000 Common Stock 18,000

10 Furniture & Equipment 63,000 Bank 63,000 11 Inventory 1,764,640 Bank 1,764,640 (Assumed purchased on cash) 12 Computer System 81,440 Cash 81,440 2,512,952 13 Bank 51,278 Accounts Receivable Sales 2,564,230 14 Cost of Goods Sold 1,689,756 Inventory 1,689,756 15 Supplies Expense 4,003 Supplies inventory 726 4,729 Cash 16 Salary Expense Bank (Bal. fig) 135,422 127,842 Salary Payable 7,580 Interest expense 24,012 Interest Payable 24,012 17 Need further information for all asset to calculate and record depreciation Depreciation for new system Cost 81,440 (8,000) 73,440 Salvage Value to be depreciated No ofyears Yearly depreciation 24,480

18 No year end is specified therefore amount cannot be computed However Journal entry for recording expense would be Debit Expense Prepaid Expense Credit Amount of supplies already adjusted in Entry #15 19 Current tax expense 86,500 Bank 86,500 20 Dividends 2,050 Bank 2,050 378 21 Bad debts 378 Accounts receivable 22 Opening accounts receivable is not available Proceed with the following to rrive at numbers Opening Accounts Receivable Add: Credit Sales during the y Less: Receipts from customei Less: Bad debts Closing accounts receivable Xxxx Compute 2% of the above amount Journal Entry Provision for bad debts Debit Accounts receivable Credit 23 To calculate income before income tax Take total of all ledgers Prepare Profit and Loss And compute income before income tax And calculate 21% of the above figure Journal Entry Current tax expense Debit Provision for Income Tax Credit

These all are indicative entries due to insufficient information, however the totals of debits and credits will tally.

Please let me know if you face any issue for any explanation for calculations above.