ACCT I S 100 Chapter Notes - Chapter 10: Debits And Credits, Operating Lease, Amortization Schedule
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Required:
1. Open T-accounts for the listed accounts, inserting their unadjustedJune 30, 2014, balances.
2. Post the June 30, 2014, adjusting entries to the T-accounts opened.Round all amounts to the nearest whole dollar.
3. Prepare the liability section ofShell Storage Unitsâ balance sheet at June 30, 2014
The general ledger of Shell Storage Units at June 30, 2014, theend of the companyâs fiscal year, includes the following accountbalances before adjusting entries.
Notes Payable,Short-Term $20,000
AccountsPayable $235,620
Current Portion of Long-term Debt payable
Interest Payable
Salaries payable
Employee Income Tax Payable
Employer Payroll Costs Payable
Employee Insurance Benefits Payable
Estimated Vacation Pay Liability $12,360
Sales Tax and GSTPayable $5972
Unearned RentRevenue $18,000
Long-Term DebtPayable $250,000
The additional data needed to develop the adjusting entries atJune 30 are as follows:
A) The$20,000 short-term note payable was issued on February 28. Itmatures six months from data of issuance and bears interest at6%.
B) Thelong-term debt is payable in annual installments of $50,000 withthe next installment due on August 31. On that date, Shell StorageUnits will also pay one yearâs interest at 3%. Interest was lastpaid August 31 of the preceding year.
C) GrossSalaries for the last payroll of the fiscal year were $6328. Ofthis amount, employee payroll withholdings payable were $1365 andsalary payable was $4963.
D) Employer Payroll Costs Payable was $820, and Shell Storageâsliability for employee health insurance was $991.
E) ShellStorage estimates that vacation pay expense is 6% of gross salariesof $147,500 (the $147,500 includes the last payroll of the fiscalyear).
F) On March 1, the company collected one yearâs rent of $18,000 inadvance.
G) At June 30,Shell Storage is the defendant in a $200,000 lawsuit, which thecompany expects to win. However, the outcome is uncertain.
Notes Payable, |
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Interest Payable | Salaries Payable | Employee Income Tax Payable | |||||
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Employer Payroll Costs Payable | Employee Insurance Benefits | Estimated Vacation | |||||
Sales Tax and |
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The following are the transactions relating to the formation ofCardinal Mowing Services, Inc., and its first month ofoperations. |
| a. | The firm was organized and the initial stockholders investedcash of $780. |
| b. | The company borrowed $1,170 from a relative of one of theinitial stockholders; a short-term note was signed. |
| c. | Two zero-turn lawn mowers costing $624 each and a professionaltrimmer costing $169 were purchased for cash. The original listprice of each mower was $793, but a discount was received becausethe seller was having a sale. |
| d. | Gasoline, oil, and severalpackages of trash bags were purchased for cash of $117. |
| e. | Advertising flyers announcing the formation of the business anda newspaper ad were purchased. The cost of these items, $221, willbe paid in 30 days. |
| f. | During the first two weeks of operations, 47 lawns were mowed.The total revenue for this work was $917; $605 was collected incash, and the balance will be received within 30 days. |
| g. | Employees were paid $546 fortheir work during the first two weeks. |
| h. | Additional gasoline, oil, andtrash bags costing $143 were purchased for cash. |
| i. | In the last two weeks of thefirst month, revenues totaled $1,196, of which $488 wascollected. |
| j. | Employee wages for the last twoweeks totaled $663; these will be paid during the first week of thenext month. |
| k. | It was determined that at theend of the month the cost of the gasoline, oil, and trash bagsstill on hand was $39. |
| l. | Customers paid a total of $195 due from mowing services providedduring the first two weeks. The revenue for these services wasrecognized in transaction f. |
| Required: |
| Prepare the journal entries for above of the transactions. Journal entry options include: Accounts payable Accounts receivable Accumulated depreciation Additional paid-in capital Advertising expense Allowance for bad debts Apicâpreferred Bad debts expense Bonds payable Buildings Capital lease liability Cash Commissions expense Commissions payable Cost of goods sold Current maturities of long-term debt Deferred income taxes Deferred tax liabilities Depreciation expense Discount on bonds payable Discount on notes payable Dividends payable Employee contributions to pension plan Equipment Estimated health care expense Estimated liability for retiree health care--current Estimated warranty liability Federal unemployment taxes withheld Fica taxes withheld Gain on sale of equipment Goodwill Group hospitalization insurance Income tax expense Income taxes payable Income taxes withheld Insurance expense Interest expense Interest income Interest payable Interest receivable Interest revenue Inventory Keg deposits Keg deposits revenue Keg expense Land Loss of sale of equipment Loss on early retirement of bonds Loss on sale of machine Machine Medical insurance contributions Merchandise inventory Miscellaneous expense Note payable Note receivable Paid-in capital Parts inventory Payroll tax expense Payroll taxes payable Preferred stock Premium on bonds payable Prepaid insurance Prepaid rent Real estate tax expense Real estate taxes payable Rent expense Rent payable Rent revenue Retained earnings Serial bonds payable Service revenue Subscription revenue Supplies Supplies expense Supplies on hand Ticket revenue Treasury stock Trucks Unearned rent revenue Unearned revenues Unearned subscription revenue Unearned ticket revenue Utilities expense Wages expense Wages payable Warranty expense Withholding liabilities and each journal entry is either credit ordebit.!!!! |
