Transactions and events during 2021 (summarized in thousands of dollars) follow: a. Borrowed $12 cash on March 1 using a short-term note. b. Purchased land on March 2 for future building site; paid cash, $9. c. Issued additional shares of common stock on April 3 for $32. d. Purchased software on July 4, $10 cash. e. Purchased supplies on account on October 5 for future use, $18. f. Paid accounts payable on November 6, $13. g. Signed a $25 service contract on November 7 to start February 1, 2022. h. Recorded revenues of $144 on December 8, including $32 on credit and $112 collected in cash. i. Recognized salaries and wages expense on December 9, $77 paid in cash. j. Collected accounts receivable on December 10, $16. Data for adjusting journal entries as of December 31: k. Unrecorded amortization for the year on software, $8. l. Supplies counted on December 31, 2021, $10. m. Depreciation for the year on the equipment, $6. n. Interest of $1 to accrue on notes payable. o. Salaries and wages earned but not yet paid or recorded, $12. p. Income tax for the year was $8. It will be paid in 2022. Required: 5. Prepare an adjusted trial balance. (Enter your answers in thousands of dollars.)
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This involves documenting each transaction from a to j as they occurred throughout the year. For simplicity, we'll summarize the impact of these transactions on the accounts: - Cash increases by $12 (borrowing) and decreases by $9 (land purchase), $10 (software Show more…
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Akash M.
Statement of cash flows Comparative information as at 30 June 2023 and 30 June 2024 for Declare Ltd is as follows. DECLARE LTD Comparative statements of financial position as at 30 June 2023 2024 Assets Cash at bank 62,000 43,000 Accounts receivable 76,000 84,500 Inventory 124,000 113,500 Land 62,500 25,000 Buildings 137,500 265,000 Accumulated depreciation — buildings (85,000) (100,000) Plant and equipment 40,000 40,000 Accumulated depreciation — plant and equipment (5,000) (10,000) 412,000 461,000 Liabilities and equity Accounts payable 60,500 67,000 Interest payable 750 250 Other expenses payable 8,750 3,000 Mortgage loan payable 45,000 66,250 Share capital 125,000 125,000 Retained earnings 172,000 199,500 412,000 461,000 Additional information 1. Gross profit for the year ended 30 June 2024 was $160,500 and consisted of the following. Sales 443,500 Cost of sales 283,000 2. Purchases of inventory for the year were $272,500. 3. All purchases and sales of inventories were on credit. 4. Profit for the year ended 30 June 2024 was $31,250, after deducting expenses of $129,250 from the gross profit figure. 5. Expenses of $129,250 include depreciation on buildings, and on plant and equipment, a loss on sale of land, and $5,000 in interest expense. 6. During the year ended 30 June 2024, cash dividends were paid. 7. Building extensions were paid for during the year, and a block of land, costing $37,500, was sold for $31,250 cash. 8. No plant was purchased or sold during the year. Required (a) Prepare the Statement of Cash Flows for Declare Ltd for the year ended 30 June 2024 using the direct method. (b) Complete T-accounts to show your workings for preparing the Statement of Cash Flows for Declare Ltd.
The comparative balance sheets for 2024 and 2023 and the statement of income for 2024 are given below for Dux Company. Additional information from Dux's accounting records is provided also. DUX COMPANY Comparative Balance Sheets December 31, 2024 and 2023 ($ in thousands) 2024 2023 Assets Cash $ 60 $ 23 Accounts receivable 39 54 Less: Allowance for uncollectible accounts (5) (4) Dividends receivable 6 5 Inventory 55 50 Long-term investment 19 16 Land 75 55 Buildings and equipment 266 280 Less: Accumulated depreciation (62) (80) $ 453 $ 399 Liabilities Accounts payable $ 31 $ 33 Salaries payable 1 6 Interest payable 8 5 Income tax payable 7 8 Notes payable 20 0 Bonds payable 110 85 Less: Discount on bonds (3) (4) Shareholders' Equity Common stock 210 200 Paid-in capital—excess of par 24 20 Retained earnings 52 46 Less: Treasury stock (7) 0 $ 453 $ 399 DUX COMPANY Income Statement For the Year Ended December 31, 2024 ($ in thousands) Revenues Sales revenue $ 230 Dividend revenue 6 $ 236 Expenses Cost of goods sold 135 Salaries expense 31 Depreciation expense 6 Bad debt expense 1 Interest expense 8 Loss on sale of building 5 Income tax expense 14 200 Net income $ 36 Additional information from the accounting records: A building that originally cost $32,000, and which was three-fourths depreciated, was sold for $3,000. The common stock of Byrd Corporation was purchased for $3,000 as a long-term investment. Property was acquired by issuing a 12%, seven-year, $20,000 note payable to the seller. New equipment was purchased for $18,000 cash. On January 1, 2024, bonds were sold at their $25,000 face value. On January 19, Dux issued a 5% stock dividend (1,000 shares). The market price of the $10 par value common stock was $14 per share at that time. Cash dividends of $16,000 were paid to shareholders. On November 12, 500 shares of common stock were repurchased as treasury stock at a cost of $7,000. Required: Prepare the statement of cash flows of Dux Company for the year ended December 31, 2024. Present cash flows from operating activities by the direct method. Note: Do not round your intermediate calculations. Enter your answers in thousands (i.e., 10,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.
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