Solved | ACCT_220 UCM
haafi
XYZ Company's December 31, 2015, trial balance is as follows:
XYZ is a small company and records adjusting entries and closing entries only at fiscal (calendar) year end. Correcting and adjusting entries have not been recorded.
Additional Information:
Notes Receivable is a 3-month, 6% note accepted on November 1, 2015.
Long-Term Notes Payable is a 5-year, 5% note that was signed on July 1, 2015. Interest is payable annually.
Building is depreciated at 3% per year. There is no salvage value.
Equipment is depreciated at 15% per year. There is no salvage value.
XYZ discovered, on December 30, that the inexperienced bookkeeper recorded in the general journal and general ledger that day's $1,500 cash sales as a debit to Accounts Receivable and a credit to Sales Revenue.
The year-end physical count for Merchandise Inventory reflected a value of $51,500. Any difference in value will not be considered theft or loss.
Salaries for the last half of December, payable in January, amount to $5,500.
XYZ estimates that of the Accounts Receivable, 5% will not be collectable.
Required: PLEASE INCLUDE DATES AND EVERYTHING LISTED BELOW
Prepare in journal form, any required correcting entries.
Prepare in journal form, all end-of-the-period adjusting entries.
Prepare a December adjusted trial balance.
Prepare a classified balance sheet for the year ended December 31, 2015.
Prepare in journal form, the closing entries for the year ended December 31, 2015.
Question 2
XYZ Company uses the periodic method and had the following inventory events during January:
| Date | Units Purchased | Unit Cost | Date | Units Sold | Unit Sales Price |
| Jan. 1 | 150 | $7.00 | Jan. 2 | 100 | $10.00 |
| Jan. 5 | 225 | 7.20 | Jan. 7 | 125 | 10.00 |
| Jan. 10 | 100 | 7.50 | Jan. 12 | 75 | 12.00 |
| Jan. 15 | 150 | 7.80 | Jan. 17 | 200 | 12.50 |
| Jan. 20 | 200 | 7.95 | Jan. 24 | 150 | 15.00 |
| Jan. 25 | 150 | 8.00 |
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| Jan. 30 | 75 | 8.20 |
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Note: The January 1 amounts were the beginning inventory and unit value.
(Round all total dollar values to the nearest dollar.Round all unit values to the nearest penny.)
Required:
<ol>Question 3
Required: Prepare Acme Supply Company's general journal entries for the following transactions:
| Jan. 1 | Accepted RunTimeCo's 120-day, 10% note as settlement of an outstanding $15,000 account receivable for goods sold last year. |
| Jan. 15 | Purchased $10,000 Equipment from XYZ, signing a 9-month, 12% note. |
| Jan. 15 | Loaned Warner Co. $30,000 cash, accepting a 90-day, 10% note. |
| Jan. 31 | Prepared accrual adjusting entry for any interest revenue. |
| Apr. 15 | Received payment in full from Warner Co. for outstanding note and interest. |
| May 1 | Received payment in full from RunTimeCo for outstanding note and interest. |
| Oct. 15 | Paid XYZ in full. |
Question 4:
XYZ Company purchased a refrigerated delivery truck for $65,000 on January 1, 2015. The plan is to use the truck for 5 years and then replace it. At the end of its useful life, the truck is expected to have a salvage value of $10,000. The fiscal year ends December 31.
<ol>Question 5
Acme Company has a January 15 mid-month gross salaries expense of $25,000. All is subject to FICA Social Security (6.2%), FICA Medicare (1.45%), state income tax (5%) and federal income tax (15%) withholdings. Additionally, all is subject to employer taxes to include FUTA (0.8%) and SUTA (5.4%) taxes. (Round all calculations to the nearest penny.)
Required:
Prepare the general journal entry to record the employer's payroll liability.
Prepare the general journal entry to record the employer's payroll-tax liability.
Prepare the general journal entry to liquidate the liabilities accrued in parts (a) and (b) on January 22.
Question 6
At the end of the fiscal 2015 year, Acme Company has the following information: Credit Sales, $2,500,000; Sales Returns and Allowances, $25,000; Accounts Receivable, $200,000; and Allowance for Doubtful Accounts with a Debit, $1,500.
Required:
- Prepare the general journal entry to record the end-of-the-year adjusting entry if Acme uses 0.5% of Net Credit Sales as the basis for determining Bad-Debt Expense.
- Prepare the general journal entry to record the end-of-the-year adjusting entry if Acme uses 5% of Accounts Receivable as the basis for determining Bad-Debt Expense.
