| Question Detail: Assignment 2
Caleb Company’s fiscal year runs from January through December. Its January 1, 2013’s trial balances are below: Account Title | Debits | Credits | Cash | $30,000 | Accounts Receivable | 15,000 | Equipment | 20,000 | Accumulated Depreciation | $ 6,000 | Salaries Payable | 9,000 | Common Stock | 40,500 | Retained Earnings | 9,500 | Total | $ 65,000 | $ 65,000 |
Summary of transactions that occurred during the year are below: a. Sales of services | $100,000 | Out of the sales, credit sales was | 30,000 | b. Accounts Receivable collected | 27,300 | c. Shares issued for cash | 10,000 | d. Salaries paid | 50,000 | Out of the salaries paid, Salaries Payable amount was | 9,000 | e. Miscellaneous Expense paid | 24,000 | f. Equipment Purchased | 15,000 | g. Cash Dividends paid | 2,500 |
Other pertinent information: Year-end accrued salaries | $ 1,000 | Equipment Depreciation | 2,000 |
Required: Using the template provided by the instructor, - Set up the necessary T- accounts and enter the beginning balances from the trial balance provided.
- Prepare a journal entry for each of the summary of transactions listed above.
- Post the journal entries to the T-accounts.
- Prepare an unadjusted trial balance.
- Prepare and post adjusting journal entries. Enter the adjusting entries in the T-accounts as applicable. The two adjusting entries are the year-end accrued salaries and equipment depreciation provided in the question.
- Prepare an adjusted trial balance.
- Prepare an income statement for year ended 2013 and a balance sheet as of December 31, 2013.
- Prepare and post closing entries.
- Prepare a post- closing trial balance.
Assignment 3
- The following are the common classifications used in a balance sheet:
- Current assets F. Current liabilities
- Investments G. Long-term liabilities
- Property, plant and equipment H. Paid-in-capital
- Intangible assets I. Retained earnings
- Other assets
Required: For each of the following balance sheet items, use the letters above to indicate the appropriate classification category. If the item is a contra account or valuation account, place a minus sign before the chosen letter. - ___ Note receivable (due in 2 years)
- ___ Accounts receivable
- ___ Accumulated depreciation
- ___Land, in use
- ___Note payable (due in 10 months)
- ___Interest payable
- ___ Note receivable (due in 6 months)
- ___Cash equivalents
- ___ Investment in XYZ Corp ( long-term)
- ___ Inventories
- ___Goodwill
- ___Accrued salaries payable
- ___Accrued interest payable
- ___Prepaid insurance
- ___Common stock
- ___Equipment
- ___Unearned revenue
- ___Warranties payable
- The following are common disclosures that would appear in the notes accompanying financial statements. For each of the items listed, indicate where the disclosure would likely appear.
Use A if the item would appear in summary of significant accounting policies notes Use B if the item would appear in subsequent events notes Use C if the item would appear in noteworthy events and transactions 1. Depreciation method _ 2. Information on related party transactions _____ 3. Method of accounting for acquisitions _____ 4. Composition and details of long-term debt _____ 5. Inventory method _____ 6. Basis of revenue recognition _____ 7. Major damage to a plant facility occurring after year-end _____ 8. Composition of accrued liabilities _____ - The December 31, 2013 post-closing trial balance for Tricam Engineering, an exploration company, is presented below.
Account Title
| Debits | Credits | Cash ............................................................ | 52,000 | Accounts receivable ..................................... | 223,000 | Allowance for uncollectible accounts ............. | 15,000 | Inventories ................................................... | 200,000 | Supplies ...................................................... | 3,000 | Investments ................................................. | 140,000 | Land ............................................................ | 100,000 | Buildings ..................................................... | 500,000 | Accumulated depreciation - buildings ............ | 150,000 | Machinery .................................................... | 250,000 | Accumulated depreciation - machinery ........... | 80,000 | Goodwill ...................................................... | 36,000 | Accounts payable ........................................ | 125,000 | Bonds payable ............................................. | 500,000 | Interest payable ............................................ | 40,000 | Common stock ............................................ | 500,000 | Retained earnings ......................................... | ______ | 94,000 | Totals | 1,504,000 | 1,504,000 |
Additional information provided is below: - Accounts receivable includes a $50,000 note receivable received from a customer that is due in 2015. Also included is interest on the note of $3,000 that is due in six months.
- The land account includes land that cost $20,000 that the company has not used and is currently listed for sale.
3. The investment account includes a $10,000, 3-month certificate of deposit due in 40 days. The remaining investments will be sold within the next year. 4. The bonds payable account consists of the following: a. a $200,000 issue due in six months. b. a $300,000 issue due in six years. 5. The common stock account represents 500,000 shares of no par value common stock issued and outstanding. The corporation has 1,000,000 shares authorized. Required: Prepare a classified balance sheet for Tricam Engineering at December 31, 2013 using the post-closing trial balance and the additional information provided. |
SuperClass
11 years ago
