Question : 244. Mandalay Company, Inc. frequently has accrued expenses at the end : 1257865

 

244. Mandalay Company, Inc. frequently has accrued expenses at the end of its fiscal year that should be recorded for proper financial statement presentation. Mandalay pays on a weekly basis and has $50,000 of accrued salaries incurred but not paid for June 30, its fiscal year-end. This consists of one day’s accrued salaries for the week. The company will pay its employees $250,000 on July 4; the one day of accrued salaries and the remaining four days for July salaries. Record the following entries: (a) Accrual of the salaries on June 30.(b) Payment of the salaries on July 4, assuming that Mandalay does not prepare reversing entries.(c) Assuming that Mandalay prepares reversing entries, reverse the adjusting entry made on June 30.(d) Assuming that Mandalay prepares reversing entries, payment of the salaries on July 4. 

245. Compute Darling Company’s current ratio using the following information:  

Accounts receivable

$20,000

Long-term notes payable

$80,000

Salaries payable

5,000

Building

170,000

Prepaid Rent

7,000

Accounts payable

15,000

Cash

12,000

Land

75,000

 

246. The unadjusted trial balance of Barber Housekeeping Service, Inc. is entered on the partial work sheet below.

Barber Housekeeping Service, Inc.

Work Sheet

For the year ended December 31

 

Account

 

Unadjusted Trial Balance

 

Adjustments

 

Adjusted Trial Balance

 

Income Statement

Balance Sheet

 

Debit

Credit

Debit

Credit

Debit

Credit

Debit

Credit

Debit

Credit

Cash………….

50,000

 

 

 

 

 

 

 

 

 

Accounts Receivable…

10,000

 

 

 

 

 

 

 

 

 

Supplies………..

8,000

 

 

 

 

 

 

 

 

 

Automobiles……..

160,000

 

 

 

 

 

 

 

 

 

Accum. Depr.—Autos…

 

  55,000

 

 

 

 

 

 

 

 

Accounts payable…..

 

37,000

 

 

 

 

 

 

 

 

Salaries payable……

 

 

 

 

 

 

 

 

 

 

Common stock

Retained earnings…..

 

 

1,000

54,000

 

 

 

 

 

 

 

 

Dividends ……….

45,000

 

 

 

 

 

 

 

 

 

Fees earned……..

 

275,400

 

 

 

 

 

 

 

 

Salary expense…….

125,000

 

 

 

 

 

 

 

 

 

Rent expense……..

24,400

 

 

 

 

 

 

 

 

 

Advertising expense…

 

 

 

 

 

 

 

 

 

 

Supplies expense…..

 

 

 

 

 

 

 

 

 

 

Depreciation expense..

______

______

 

 

 

 

 

 

 

 

Totals………….

422,400

422,400

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Required: Complete the work sheet using the following information:(a)   Salaries earned by employees that are unpaid and unrecorded, $5,000.(b)   An inventory of supplies showed $3,000 of unused supplies still on hand.(c)   Depreciation on automobiles, $30,000.(d)   Advertising for November and December in the amount of $8,000 remains unpaid and unrecorded.