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.
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.
Related questions
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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