AFM102 Lecture Notes - Lecture 12: Unemployment Benefits, Canada Pension Plan, Canada Revenue Agency
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The following items were selected from among the transactions completed by Sherwood Co. during the current year:
Mar. | 1 | Purchased merchandise on account from Kirkwood Co., $366,000, terms n/30. |
31 | Issued a 30-day, 6% note for $366,000 to Kirkwood Co., on account. | |
Apr. | 30 | Paid Kirkwood Co. the amount owed on the note of March 31. |
Jun. | 1 | Borrowed $198,000 from Triple Creek Bank, issuing a 45-day, 8% note. |
Jul. | 1 | Purchased tools by issuing a $270,000, 60-day note to Poulin Co., which discounted the note at the rate of 6%. |
16 | Paid Triple Creek Bank the interest due on the note of June 1 and renewed the loan by issuing a new 30-day, 6.5% note for $198,000. (Journalize both the debit and credit to the notes payable account.) | |
Aug. | 15 | Paid Triple Creek Bank the amount due on the note of July 16. |
30 | Paid Poulin Co. the amount due on the note of July 1. | |
Dec. | 1 | Purchased equipment from Greenwood Co. for $400,000, paying $108,000 cash and issuing a series of ten 8% notes for $29,200 each, coming due at 30-day intervals. |
22 | Settled a product liability lawsuit with a customer for $320,000, payable in January. Accrued the loss in a litigation claims payable account. | |
31 | Paid the amount due to Greenwood Co. on the first note in the series issued on December 1. |
Required: | |||||
1. | Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year. Round your answers to the nearest dollar. | ||||
2. | Journalize the adjusting entry for each of the following accrued expenses at the end of the current year (refer to the Chart of Accounts for exact wording of account titles):
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Chart of Accounts
CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sherwood Co. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Journal
1. Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year. Scroll down to access page 12 of the journal. Round your answers to the nearest dollar.
PAGE 11
JOURNAL
ACCOUNTING EQUATION
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2. | Journalize the adjusting entry for each of the following accrued expenses at the end of the current year (refer to the Chart of Accounts for exact wording of account titles):
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PAGE 12
JOURNAL
ACCOUNTING EQUATION
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
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Balance Sheet Preparation The following is a December 31, 2015, post-closing trial balancefor the Happy Valley Corporation.
Additional Information: 1. The $105000 balance in the landaccount consists of $87600 for the cost of land where the plant andoffice buildings are located. The remaining amount represents thecost of land being held for speculation. 2. The $41600 in the marketablesecurities account represents an investment in the common stock ofanother corporation. Valley intends to sell one-half of the stockwithin the next year. 3. The notes payable account consistsof a note due in six months and a $187000 note due in three equalannual installments, with the first payment due in August of2015. Required: Calculate the following balance sheet totals for theValley Pump Corporation at December 31, 2014. Common Stock Current Assets Property, Plant and Equipment (net) Intangible and Other Assets Total Assets Short-term Note Payable Current Liabilities Long-term Liabilities Total Equity Total Liabilities and Equity |
Please include a detailed answer for the accounts you includedto find the balance of each.