Question 15 Gordon Company started operation on January 1 of the current year, It is now December 31, the end of the current annual accounting period. The part-time bookkeeper needs your help to analyze the following three transactions. a. During the year, the company purchase office supplies that cost $3,000. AT the end of the year, office supplies if $800 remained on hand. b. On January 1 of the current year the company purchase a special machine for cash at a cost of $25,000. The machine’s cost is estimated to depreciate at $2,500 per year. c. On July 1, the company paid cash of $1,000 for a two-year premium on an insurance policy on the machine; coverage began on July 1 of the current year. Required: Complete the following schedule with the amounts that should be reported for a current year:
Selected Balance Sheet Accounts at December 31 Amount to be Reported
Assets
Equipment
Accumulated depreciation
Net book value of equipment
Office supplies
Balance Sheet | ||||
Assets | ||||
Equipment | $ 25,000.00 | |||
Less: | Accumulated Depreciation | $ 2,500.00 | ||
Net book value of equipment | $ 22,500.00 | |||
Office Supplies | $ 800.00 | |||
Prepaid Insurance | (W.N) | $ 750.00 |
Prepaid Insurance | |||||
Amount of prepaid insurance expired = | $ 1000 x 6/24 | ||||
= | $ 250.00 | ||||
Remaining amount in prepaid insurance = | $ 1000 - $ 250 | ||||
= | $ 750.00 |
Income Statement | |||||
Depreciation Expense | $ 2,500.00 | ||||
Supplies Expense | $ 2,200.00 | ($ 3000 - $ 800) | |||
Insurance Expense | $ 250.00 |
Question 15 Gordon Company started operation on January 1 of the current year, It is now...
E4-13 (Algo) Determining Financial Statement Effects of Three Adjusting Entries L04-1, 4-2 Gordon Company started operations on January 1 of the current year. It is now December 31, the end of the current annual accounting period. The part-time bookkeeper needs your help to analyze the following three transactions: a. During the year, the company purchased office supplies that cost $2,700. At the end of the year, office supplies of $770 remained on hand. b. On January 1 of the current...
Question 12 Trotman’s variety Store is completing the accounting process for the current year just ended. December 31. The transaction during the year have been journalized and posted. The following data will respect to adjustment entries are available. a. Wages earned by employees during December, unpaid and unrecorded at December 3, amount to $2,700 the last payroll was December 28, the next payroll will be January 6. b. Office supplies on hand at January 1 of the current year totaled...
Question 12 Trotman’s variety Store is completing the accounting process for the current year just ended. December 31. The transaction during the year have been journalized and posted. The following data will respect to adjustment entries are available. a. Wages earned by employees during December, unpaid and unrecorded at December 3, amount to $2,700 the last payroll was December 28, the next payroll will be January 6. b. Office supplies on hand at January 1 of the current year totaled...
Question 13 Trotman’s variety Store is completing the accounting process for the current year just ended. December 31. The transaction during the year have been journalized and posted. The following data will respect to adjustment entries are available. a. Wages earned by employees during December, unpaid and unrecorded at December 3, amount to $2,700 the last payroll was December 28, the next payroll will be January 6. b. Office supplies on hand at January 1 of the current year totaled...
Trotman’s variety Store is completing the accounting process for the current year just ended. December 31. The transaction during the year have been journalized and posted. The following data will respect to adjustment entries are available. a. Wages earned by employees during December, unpaid and unrecorded at December 3, amount to $2,700 the last payroll was December 28, the next payroll will be January 6. b. Office supplies on hand at January 1 of the current year totaled $450.00. Office...
Trotman’s variety Store is completing the accounting process for the current year just ended. December 31. The transaction during the year have been journalized and posted. The following data will respect to adjustment entries are available. a. Wages earned by employees during December, unpaid and unrecorded at December 3, amount to $2,700 the last payroll was December 28, the next payroll will be January 6. b. Office supplies on hand at January 1 of the current year totaled $450.00. Office...
Trotman’s Variety Store is completing the accounting process for the current year just ended, December 31. The transactions during the year have been journalized and posted. The following data with respect to adjusting entries are available: Wages earned by employees during December, unpaid and unrecorded at December 31, amounted to $4,600. The last payroll was December 28; the next payroll will be January 6. Office supplies on hand at January 1 of the current year totaled $600. Office supplies purchased...
At the beginning of the fiscal year 2018, Samat Company did not have any office supplies. On January 2, 2018, it used $800 cash to purchase some office supplies. On December 31, 2018, the company's year end, a physical count showed the $210 worth of office supplies remained. Prepared journal entires related to office supplies for Samat Company for the fiscal year 2018. Date Account Title and Explanation PR Debit Credit
Chapter 4 Catena's Marketing Company has the following adjusted trial balance at the end of the current year. Cash dividends of $600 were declared at the end of the year, and 660 additional shares of common stock ($0.10 par value per share) were issued at the end of the year for $2,640 in cash (for a total at the end of the year of 810 shares). These effects are included below: Required information [The following information applies to the questions...
16) On January 1, a business purchased a five-year insurance policy for $2,500 with coverage starting immediately. If the purchase was recorded in the Prepaid Insurance account, and the company records adjustments only at year-end. Draw the T-account for Prepaid Insurance to show the this adjustment. 17) Grayson Inc. leased a portion of its store to another company for 10 months beginning on July 1, at a monthly rate of $700. Grayson collected the entire $7,000 cash on July 1...