ACCT 3001 Chapter : Solution To Supplemental Assign 1 Problem 3 8 Solution
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1).Write the Trial Balance
Journal Entries
Date | General Journal | Debit | Credit |
Jan.1 | Cash (16,000 Shares x $18) | $288,000 | |
Common Stock (16,000 Shares x Par $5) | $80,000 | ||
Paid in Capital in Excess of Par - Common Stock (Bal.Fig.) | $208,000 | ||
Jan.1 | Cash (7200 Shares x $42) | $302,400 | |
Preferred Stock (7200 Shares x Par $40) | $288,000 | ||
Paid in Capital in Excess of Par - Preferred Stock (Bal.Fig.) | $14,400 | ||
Jan.31 | Prepaid Insurance | $34,080 | |
Cash | $34,080 | ||
Feb.1 | Equipment | $290,000 | |
Cash | $50,000 | ||
Notes Payable | $50,000 | ||
Common Stock (9500 Shares x Par $5) | $47,500 | ||
Paid in Capital in Excess of Par - Common Stock (Bal.Fig.) | $142,500 | ||
May.1 | Treasury Stock (1200 Shares x $22) | $26,400 | |
Cash | $26,400 | ||
June.1 | Retained Earnings (7200*$40*5%) | $14,400 | |
Preferred Stock Dividend Payable | $14,400 | ||
June.30 | Preferred Stock Dividend Payable | $14,400 | |
Cash | $14,400 | ||
July.1 | Cash | $1,092,880 | |
Bonds Payable (at face value) | $1,000,000 | ||
Premium on Bonds Payable (Bal. figure) | $92,880 | ||
July.30 | Notes Payable | $50,000 | |
Interest Expense (50,000*5%*180/360) | $1,250 | ||
Cash | $51,250 | ||
Aug.1 | Cash (450 Shares x $26) | $11,700 | |
Treasury Stock (450 Shares x Cost $22) | $9,900 | ||
Paid in Capital from Treasury Stock (Bal. figure) | $1,800 | ||
Oct.1 | Equity Investment - Precision Corporation (30000 Shares x $5.10) | $153,000 | |
Commission Expense | $125 | ||
Cash | $153,125 | ||
Oct.16 | Cash (250 Shares x $20) | $5,000 | |
Retained Earnings (Bal. figure) | $500 | ||
Treasury Stock (250 Shares x Cost $22) | $5,500 | ||
Nov.1 | Cash | $36,000 | |
Notes Payable | $36,000 | ||
Dec.15 | Retained Earnings | $26,900 | |
Preferred Stock Dividend (7200*$40*5%) | $14,400 | ||
Common Stock Dividend (0.50*(16000+9500-1200+450+250) | $12,500 | ||
Dec.30 | No Entry on record date | ||
Dec.31 | Accounts Receivable | $1,475,000 | |
Cash | $500,000 | ||
Sales Revenue | $1,975,000 | ||
Dec.31 | Rent | $170,000 | |
Utilities | $13,200 | ||
Salaries | $760,000 | ||
Payroll tax expense | $45,600 | ||
Advertising | $120,000 | ||
Medican Insurance | $32,000 | ||
Commissions | $63,000 | ||
Legal and accounting | $18,000 | ||
Miscellaneous | $8,400 | ||
Cash | $1,200,200 | ||
Accounts Payable | $30,000 | ||
Dec.31 | Interest Expense (Bal figure) | $34,840 | |
Premium on Bonds Payable (92,880/18) | $5,160 | ||
Cash Interest Paid (Face Value 1000,000*8%*1/2 semi annual) | $40,000 | ||
Dec.31 | Cash | $3,000 | |
Equity Investment - Precision Corporation (30,000 Shares x $0.10) | $3,000 | ||
Dec.31 | Equity Investment - Precision Corporation (25,000*30%) | $7,500 | |
Equity Income - Precision Corporation | $7,500 |
REM Consulting iscompleting its accounting processing at the end of the fiscal year,December 31. The following trial balances are available. | ||||||||
âAccounts | Unadjusted | Adjustments | Adjusted | |||||
Trial Balance | Trial Balance | |||||||
Debit | Credit | Debit | Credit | Debit | Credit | |||
Cash | 13,000 | 13,000 | ||||||
Accounts Receivable | 1,500 | 1,800 | ||||||
Prepaid Insurance | 600 | 200 | ||||||
Supplies | 3,800 | 3,000 | ||||||
Land | 25,000 | 25,000 | ||||||
Machines | 30,000 | 30,000 | ||||||
Accumulated Depreciation | 12,000 | 17,500 | ||||||
Trademarks | 50,000 | 50,000 | ||||||
Wages Payable | 900 | |||||||
Unearned Revenue | 6,700 | 6,500 | ||||||
Common Stock | 24,000 | 24,000 | ||||||
Paid-in Capital | 60,000 | 60,000 | ||||||
Retained Earnings | 15,000 | 15,000 | ||||||
Dividends | 4,800 | 4,800 | ||||||
Service Revenue | 25,000 | 25,500 | ||||||
Wages Expense | 14,000 | 14,900 | ||||||
Insurance Expense | 400 | |||||||
Supplies Expense | 800 | |||||||
Depreciation Expense | 5,500 | |||||||
142,700 | 142,700 | - | - | 149,400 | 149,400 | |||
â | ||||||||
â (a) Reconstruct the adjusting entries and givea brief explanation of each. | ||||||||
Prepare an IncomeStatement for REM Consulting based on this information | ||||||||
Prepare a BalanceSheet for REM Consulting based on this information | ||||||||