ACC 113 Lecture Notes - Lecture 23: Tunxis Community College, Sinking Fund, Retained Earnings

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coralimpala133

6 Jan 2021

School

Tunxis Community College

Department

Accounting

Course

ACC 113

Professor

Tinone

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Document Summary

Declare a dividend: debit dividends, credit dividends payable. Pay a dividend: debit dividends payable, credit cash, close out dividends to re. Or declare a dividend: debit re, credit dividend payable, permanent (balance sheet) accounts don"t close. Current assets cash and other assets a company expects to convert into cash, sell, or consume either in one year or in the operating cycle, whichever is longer or less) Cash and cash equivalents (become cash within 3 months. Available for sale not in the other two categories. Long-term investments (can be current or l/t) bonds when they come through. Sinking fund put money in separate account to pay off. Available for sale (can be current or l/t) operations) Land held for inspection (out of ppe because not for. Equipment held for sale (out of ppe because not for. Cash surrender value of life insurance operations) Property, plant, & equipment or operating assets.

Related Questions

1. A company declared a $400 dividend on September 30,payable in October. On September 30, what journal entry would bemade?

		a) Debit Dividends Declared for $400; credit DividendsPayable for $400
		b) Debit Dividends Receivable for $400; credit DividendsDeclared for $400
		c) Debit Dividends Payable for $400; credit DividendsDeclared for $400
		d) Debit Dividends Declared for $400; credit DividendsReceivable for $400

2. Which financial statement would not be affected by afailure to accrue wages?

		a) Balance sheet
		b) Cash flow statement
		c) Income statement
		d) Retained earnings statement

sapphiredog349

				Adjusted Trial Balance
Account Name		Debit		Credit		Debit	Credit
cash		$ 35,000.00				$ 35,000.00
accounts receivable		$ 5,600.00				$ 6,689.00
food inventory		$ 21,000.00				$ 21,000.00
merchandise inventory		$ 62,500.00				$ 62,500.00
prepaids		$ 3,400.00				$ 7,500.00
computers		$ 30,000.00				$ 30,000.00
accumulated amort-computers				$ 12,000.00			$ 18,000.00
bakery equipment		$ 90,000.00				$ 90,000.00
accumulated amort-bakery eqpmt				$ 18,000.00			$ 27,000.00
furniture & fixtures		$ 150,000.00				$ 150,000.00
accumulated amort-furniture				$ 15,000.00			$ 22,500.00
accounts payable				$ 18,000.00			$ 18,000.00
accrued liabilities							$ 1,700.00
interest payable							$ 17,600.00
dividend payable							$ 5,000.00
long term loan				$ 220,000.00			$ 220,000.00
common shares				$ 50,000.00			$ 50,000.00
retained earnings				$ 22,000.00			$ 22,000.00
food revenue				$ 468,500.00			$ 469,589.00
internet revenue				$ 127,000.00			$ 127,000.00
merchandise revenue				$ 103,000.00			$ 103,000.00
food expense		$ 240,000.00				$ 240,000.00
internet expense		$ 54,000.00				$ 54,000.00
electricity expense		$ 65,000.00				$ 65,400.00
telephone expense		$ 20,000.00				$ 20,400.00
interest expense						$ 17,600.00
salary expense		$ 200,000.00				$ 200,900.00
insurance expense		$ 9,000.00				$ 4,900.00
supplies expense		$ 8,000.00				$ 8,000.00
depreciation expense						$ 22,500.00
rent expense		$ 60,000.00				$ 60,000.00
dividend expense						$ 5,000.00
		$ 1,053,500.00		$1,053,500.00		$1,101,389.00	$1,101,389.00
	INCOME STATEMENT
	Income:
	food revenue		$ 469,589.00
	internet revenue		$ 127,000.00
	merchandise revenue		$ 103,000.00		$699,589.00

	Expenses:
	food expense		$ 240,000.00
	internet expense		$ 54,000.00
	electricity expense		$ 65,400.00
	telephone expense		$ 20,400.00
	salary expense		$ 200,900.00
	insurance expense		$ 4,900.00
	supplies expense		$ 8,000.00
	depreciation expense		$ 22,500.00
	rent expense		$ 60,000.00		$676,100.00
	Operating Income				$ 23,489.00
	Interest expense				$ 17,600.00
	Net Income				$ 5,889.00

BALANCE SHEET
ASSETS			LIABILITIES
Current Assets:			Current liabilities:
Cash	$ 35,000.00		Accounts payable	$18,000.00
Accounts receivable	$ 6,689.00		accrued liabilities	$ 1,700.00
Food inventory	$ 21,000.00		interest payable	$17,600.00
Merchandise inventory	$ 62,500.00		dividend payable	$ 5,000.00	$ 42,300.00
Prepaids	$ 7,500.00	$132,689.00	Long term liabilities:
Fixed Assets:			Long term loan		$220,000.00
Computers	$ 30,000.00		Equity:
Less accumulated depn	$ 18,000.00	$ 12,000.00	Common Shares	$50,000.00
Bakery equipment	$ 90,000.00		Retained earnings	$22,889.00	$ 72,889.00
Less accumulated depn	$ 27,000.00	$ 63,000.00
Furniture and fixtures	$150,000.00
Less accumulated depn	$ 22,500.00	$127,500.00
		$335,189.00			$335,189.00

o assess the financial reporting landscape,considering the user needs, constraints, and businessenvironment;

o identify the issues;

o analyze the issues (qualitatively andquantitatively); and

o provide a recommendation for each issueidentified in the case.

indigoalpaca549

1. Closing entries are journalized and posted

a. before the financial statements are prepared.

b. after the financial statements are prepared.

c. at management's discretion.

d. at the end of each interim accounting period.

2. Using the following income statement for the month of June 2018 of Delgado Enterprises to answer the following question.

Revenues                                                    $7,000
Expenses:
       Wages Expense                   $2,000
       Rent Expense                         1,000
       Supplies Expense                      300
       Advertising Expense                  200
       Insurance Expense                    100
           Total expenses                                  3,600
                                                                   ______
       Net income                                          $3,400

The entry to close the revenue account includes a:

a. debit to Retained Earnings for $7,000.

b. credit to Dividend for $7,000.

c. debit to Income Summary for $7,000.

d. credit to Income Summary for $7,000.

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ACC 113 Lecture Notes - Lecture 23: Tunxis Community College, Sinking Fund, Retained Earnings

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