Log in
HomeTextbook Notes300,000CA170,000

AFM101 Chapter Notes - Chapter 8: Canada Pension Plan, Accounts Payable, Promissory Note

61 views7 pages
OC2146671
12 Dec 2017
School
University of Waterloo
Department
Accounting & Financial Management
Course
AFM101
Professor
Sasan Saiy

For unlimited access to Textbook Notes, a Class+ subscription is required.

qq919649100 and 40177 others unlocked
AFM101 Full Course Notes
30
AFM101 Full Course Notes
Verified Note
30 documents

Document Summary

Liability of wages, salaries, and related payroll expenses not yet paid at the end of the period. Interest payable: the company"s interest payable on notes, loans, and bonds payable. Income taxes payable: amount of income tax the company still owes at year-end. Short-term notes payable: recorded on the borrower"s books, notes payable due within a year, used to borrow cash or to purchase assets. Levied by the federal government, pei, new brunswick. Nova scotia, and ontario: final user of a gdt or hst taxable product or service bears the tax. Further down the supply chain from the end consumer do not pay gst or hst, but receive an input tax credit (itc) equal to the tax they paid. Income taxes payable: personal and corporate taxes rates differ, corporate tax rates also vary by type of company and province. Income for accounting purposes (pretax accounting income) differs from income for tax purposes.

Get access

Grade+
$40 USD/m
Billed monthly
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
10 Verified Answers
Class+
$30 USD/m
Billed monthly
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
7 Verified Answers

Related Documents

AFM101 Lecture Notes - Lecture 18: Contingent Liability, Promissory Note, Current Liability
skyoyster237
AFM101 Chapter Notes - Chapter 10-11: Harmonized Sales Tax, Contingent Liability, Deferred Income
ivoryworm200
AFM101 Chapter Notes - Chapter 10: Current Liability, Contingent Liability, Working Capital
blueraccoon878

Related Questions

Monthly Account Balances (in thousands of dollars) Dec 31,2016

Accounts payable $ 7,750

Accounts receivable 6,440

Accrued wages payable 4,000

Cash 20,000

Common stock 14,600

Dividends payable 1,500

Interest payable 1,100

Interest receivable 50

Investments 2,660

Land 5,000

Long-term notes payable(due June 15, 2018) 4,000

Prepaid expenses 1,800

Other noncurrent assets 800

Plant and equipment 15,200

Retained earnings 10,400

Short-term notes payable 11,000

Supplies 2,000

Complete a journal entry for each of the following transactions:

Arcelo, Inc. entered into the following transactions during January 2017:

1. Paid wages owed at December 31, 2016. (accrued wages payable 2016 of $4,000)

2. Collected $5,500 on outstanding accounts receivable.

3. Paid accounts payable of $7,000.

4. Issued 1000 shares of common stock for $8each.

5. Paid $11,000 on a short-term note payable including $750of accrued interest.

6. Purchased supplies worth $1,850 on account.

7. Signed a contract with a new cleaning company. Agreed to pay $1,500 a month for cleaningthe shop each night.

8. Redeemed a six-month $2,660certificate of depositheld as an investment. Proceeds including accrued interest totaled $2,710.

9. Purchased shop equipment in exchange for $8,000 in cash and a note payable of $15,000 due 8/31/18.

Alison and Chuck Renny began operations of their furniture repair shop (Lazy Sofa Furniture, Inc.) on January 1, 2014. The annual reporting period ends December 31. The trial balance on January 1, 2015, appears below (amounts are rounded to thousands of dollars to simplify).
Account Titles Debit Credit
Cash $ 5
Accounts Receivable 4
Supplies 3
Equipment 6
Accumulated Depreciation $ 0
Software 12
Accumulated Amortization 3
Accounts Payable 7
Notes Payable (long-term) 0
Salaries and Wages Payable 0
Interest Payable 0
Income Tax Payable 0
Unearned Revenue 0
Common Stock 15
Retained Earnings 5
Service Revenue 0
Supplies Expense 0
Depreciation Expense 0
Salaries and Wages Expense 0
Amortization Expense 0
Interest Expense 0
Income Tax Expense 0
Totals $ 30 $ 30
Transactions during 2015 (summarized in thousands of dollars) follow:
1. Borrowed $28 cash on July 1, 2015, signing a six-month note payable.
2. Purchased equipment for $16 cash on July 1, 2015.
3. Issued additional shares of common stock for $4.
4. Earned revenues for 2015 in the amount of $71, including $8 on credit and $63 received in cash.
5. Recognized salaries and wages expenses for 2015 of $42, paid in cash.
6. Purchased additional equipment, $4 cash.
7. Collected accounts receivable, $7.
8. Paid accounts payable, $10.
9. Purchased on account supplies for future use, $9.
10. Received a $3 cash deposit on work to start January 15, 2016.
Data for adjusting journal entries:
11. Amortization for 2015, $3.
12. Supplies of $5 were counted on December 31, 2015.
13. Depreciation for 2015, $1.
14. Accrued interest on notes payable of $1.
15. Wages earned since the December 24 payroll not yet paid, $2.

Income tax for 2015 was $3 and will be paid in 2016

Prepare balance sheet.

Prepare the closing journal entry.

Post the closing entry and prepare a post-closing trial balance
[The following information applies to the questions displayed below.]

Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Inc.) on January 1, 2013. The annual reporting period ends December 31. The trial balance on January 1, 2015, follows (the amounts are rounded to thousands of dollars to simplify):
Account Titles Debit Credit
Cash $ 3
Accounts Receivable 5
Supplies 12
Land 0
Equipment 60
Accumulated Depreciation $ 6
Software 15
Accumulated Amortization 5
Accounts Payable 5
Notes Payable (short-term) 0
Salaries and Wages Payable 0
Interest Payable 0
Income Tax Payable 0
Common Stock 71
Retained Earnings 8
Service Revenue 0
Salaries and Wages Expense 0
Depreciation Expense 0
Amortization Expense 0
Income Tax Expense 0
Interest Expense 0
Supplies Expense 0
Totals $ 95 $ 95
Transactions during 2015 (summarized in thousands of dollars) follow:
1. Borrowed $12 cash on a six-month note payable dated March 1, 2015.
2. Purchased land for future building site; paid cash, $9.
3. Earned revenues for 2015, $160, including $40 on credit and $120 collected in cash.
4. Issued additional shares of stock for $3.
5. Recognized salaries and wages expense for 2015, $85 paid in cash.
6. Collected accounts receivable, $24.
7. Purchased software, $10 cash.
8. Paid accounts payable, $13.
9. Purchased supplies on account for future use, $18.
10. Signed a $25 service contract to start February 1, 2016.
Data for adjusting journal entries:
11. Unrecorded amortization for the year on software, $5.
12. Supplies counted on December 31, 2015, $10.
13. Depreciation for the year on the equipment, $6.
14. Accrued interest of $1 on notes payable.
15. Salaries and wages earned but not yet paid or recorded, $12.
16.

Income tax for the year was $8. It will be paid in 2016.

I need help with preparing an income statement, retained earnings statement, the balance sheet, and the post-closing trial balance. I also need help checking my answers for my adjusted trial balance with the adjusted entries included.

thank you