Question : 123. On the next page the unadjusted trial balance of Bogo : 1245882

 

123. On the next page is the unadjusted trial balance of Bogo Department Store on December 31, Year 6. The company closes its books annually. You are asked to indicate the adjusting entries required on December 31, Year 6 to conform the books to accrual accounting principles. 

1.Bogo neglected to record unpaid charges for telephone services for December in the amount of $13,700.

2.The balance in the Advances from Customers account represents the amount received from a lessee on November 1, Year 6 for the rental of excess warehouse space owned by Bogo. The rental period is for the six months ended April 30, Year 7.

3.Bogo acquired a warehouse on July 1, Year 6 and correctly recorded the acquisition cost of $600,000 in its accounts. The warehouse has a 30-year estimated life and zero salvage value. Bogo neglected to record depreciation on the warehouse, although it has correctly recorded depreciation on all other depreciable assets for Year 6.

4.Bogo debited Selling and Administrative Expenses for salaries paid during Year 6. Salaries remaining unpaid as of December 31, Year 6 total $3,700.

5.Sales made on account during the last two days of December, Year 6 totaled $12,000. Bogo incorrectly recorded these sales by debiting accounts payable. These accounts had not been collected by year end.

6.Bogo sold a piece of equipment during Year 6 for $1,800 that had originally cost $6,000 and had accumulated depreciation of $4,200. Bogo recorded this sale by debiting Cash for $1,800 and crediting Equipment for $1,800.

7.The balance in the Prepaid Insurance account represents the balance as of January 1, Year 6. Bogo renewed its only insurance policy on March 1, Year 6 and charged the one-year premium of $5,100 to Selling and Administrative Expenses.

8.A physical inventory of store supplies on December 31, Year 6 revealed that supplies costing $1,850 were on hand.

9.The note receivable was received from a corporate officer on December 1, Year 6. The note bears interest at 6 percent. The interest is payable with the principal amount borrowed at maturity on June 1, Year 7.

 

Bogo Department StoreUnadjusted Trial BalanceDecember 31, Year 6

A.Accounts Payable–$   390,000

B.Accounts Receivable$   490,000–

C.Accumulated Depreciation–980,000

D.Advances from Customers–3,600

E.Building1,500,000–

F.Bonds Payable–1,200,000

G.Cash12,700–

H.Common Stock–400,000

I.Cost of Goods Sold2,290,000–

J.Depreciation Expense150,000–

K.Equipment620,000–

L.Interest Expense96,000–

M.Interest Receivable—-

N.Interest Revenue—-

O.Merchandise Inventory570,000–

P.Note Receivable30,000–

Q.Other Current Liabilities–130,000

R.Prepaid Insurance800–

S.Rent Revenue—-

T.Retained Earnings–89,040

U.Salaries Payable–4,500

V.Sales Revenue–3,000,000

W.Selling and Administrative Expenses430,000–

X.Supplies InventoryTotals

Required:Indicate the letters in the unadjusted trial balance corresponding to the accounts debited and credited and the amount in each debit and credit entry. Use only the accounts listed in the unadjusted trial balance. More than one account may be debited or credited in a particular adjusting entry. If no adjusting entry is needed, indicate “No Entry” by the number of the entry. Remember that asset increases and liability and shareholders’ equity decreases are recorded with debits and asset decreases and liability and shareholders’ equity increases are recorded with credits.

 

 

124. The records of Horner Corp. show the following information: 

(a)Purchased a three-year insurance policy for $10,800 on September 1, 2013, and recorded the premium payment in the asset account.

(b)Borrowed $60,000 on a 1-year, 12% note on August 1, 2013. Interest is payable at maturity.

(c)Collected $8,400 on September 1, 2013, to cover six months’ rent paid in advance, and recorded the receipt in a revenue account.

(d)Machinery purchased on January 1, 2013, for $600,000 is to be depreciated over four years, with no salvage value at the end of this period.

Prepare journal entries to adjust the books of Horner Corp. at December 31, 2013.

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more