Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Description:
You have been charged with preparing year-end adjusting entries along with a multiple-step income statement and a classified balance sheet for Fat Tire, Inc., a wholesaler of bicycles and bicycle parts. The financial statements will cover the year ended December 31, 2011. A December 31 bank reconciliation, an unadjusted trial balance, and other information to help with the adjusting entries that follow.
Fat Tire, Inc.
Bank Reconciliation
December 31, 2011
Balance per Bank Statement
$293,350
Deposits in Transit
$4,500
Bank Error (See note 1 below)
1,200
Outstanding Checks
(2,000)
3,700
Adjusted Balance
$297,050
Balance per Fat Tire's Books
$300,000
Interest Earned per bank statement
$500
NSF Check (See note 2 below)
(175)
December bank service charges
(125)
Book Error (See note 3 below)
(3,150)
(2,950)
note 1: The bank incorrectly charged Fat Tire's account for a fee
that belonged to another client of the bank.
note 2: The bank returned a bad check deposited by Fat Tire
that represented a receipt of payment from one of Fat Tire's
customers.
note 3: A check for $3,500 to pay an Accounts Payable
balance was incorrectly recorded as $350 on Fat Tire's books.
Unadjusted Trial Balance
Debit
Credit
Accounts Payable
$50,000
Accounts Receivable
$425,700
Accumulated Depreciation (Equipment)
7,292
Accumulated Depreciation (Furniture & Fixtures)
29,500
Advertising Expense
18,000
Allowance for Doubtful Accounts
2,000
Cash
300,000
Common Stock
200,000
Cost of Goods Sold
2,622,750
Depreciation Expense
7,792
Equipment
10,000
Furniture & Fixtures
60,000
Income Tax Expense
229,034
Insurance Expense
15,000
Interest Revenue
5,200
Inventory
350,000
Miscellaneous Operating Expense
2,500
Note Payable
40,000
Payroll Tax Expense
21,160
Prepaid Insurance
21,000
Rent Expense
168,000
Rent Revenue
3,000
Retained Earnings
247,944
Salary Expense
264,500
Sales Discounts
30,000
Sales Returns
35,000
Sales Revenue
4,035,000
Supplies Expense
17,000
Unearned Rent
1,500
Utilities Expense
24,000
Totals
$4,621,436
Information related to adjusting entries:
Required:
Note: If it helps, prepare a schedule like we completed in requirement #2 of Problem 3-54. It may help organize your data prior to preparing the financial statements.
when treasury stock is purchased for more than its par value but less than the original issue price of the stock
on january 10 2012 a paid 2100 rent for a storage facility for the period from january 10 through may 31. the rent
The United States' Financial Reputation on an International Level
Should the city, in its government-wide statement of net position, report the debt as a governmental activity and the golf course as a business-type activity? Alternatively, should it report both the debt and the golf course in the same category o..
roper corporation reports the following results for the current year gross profit on sales 80k short term capital gain
There were no other transactions which affected the companies' land accounts during 2006. What is the consolidated balance for land on the 2006 balance sheet?
the lansing community college registrars office is considering replacing some canon copiers with faster copiers
Describes several ways to increase the value of an organization. Which of these might be applicable to an organization and why? Please provide a reference.
William's basis in the WAM Partnership interest was $100,000 just before he received a proportionate liquidating distribution consisting of investment land (basis of $30,000, fair market value $40,000), and inventory (basis of $30,000, fair market..
examine and discuss how amazon employs the budget in developing the business strategy of the company indicating if the
A toy company has been marketing souvenir toys in conjunction with various professional sports teams in a number of cities. Over the past few years, this experience has provided some data on the effect of advertising on sales revenues because the ..
hrabik corporation issued 600000 9 10-year bonds on january 1 2011 for 562613.this price resulted in an
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd