Chapter19 - answer - 19-1. Daffodil, Inc. Adjusting Journal...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 19-1. Daffodil, Inc. Adjusting Journal Entries 12.31.07 AJE (1) Share donation 60,000 Treasury shares 35,000 Land 10,000 Building 15,000 (2) Accumulated depreciation - machinery 1,000 Loss on sale of machinery 2,000 Machinery 3,000 Cost P 5,000 Less: AD (20%) 1,000 NBV P 4,000 Proceeds 2,000 Loss P 2,000 (3) (a) Accumulated depreciation - building 300 Retained earnings 300 (b) Factory operating expenses 21,300 Accumulated depreciation - building 6,300 Accumulated depreciation - machinery 15,000 Building (P315,000 x 2%) Machinery: 5,000 x 10% = P 500 145,000 x 10% = 14,500 P15,000 (4) Merchandise inventory, 12.31.07 B/S 175,000 Merchandise inventory, 12.31.07 I/S 175,000 CHAPTER 19 COMPREHENSIVE AUDIT OF BALANCE SHEET AND INCOME STATEMENT ACCOUNTS 19-2 Solutions Manual to Accompany Applied Auditing, 2006 Edition (5) Administrative expenses 1,000 Allowance for doubtful accounts 1,000 (6) Factory operating expenses 3,000 Unexpired insurance 3,000 (7) Retained earnings 2,500 Bond interest expense 2,500 Unamortized bond discount 5,000 (8) Sinking fund assets 23,500 First Mortgage SF Bonds 23,500 (9) Sinking fund assets 1,500 Sinking fund income 1,500 Comprehensive Audit of Balance Sheet and Income Statement Accounts 19-3 19-1. Daffodil, Inc. (continued) Daffodil, Inc. Working Trial Balance 12.31.07 Trial Balance Adjustments Income Statement Balance Sheet Dr Cr Dr Cr Dr Cr Dr Cr Cash P 64,000 P 64,000 Accounts receivable 200,000 200,000 Provision for doubtful accounts P 1,000 (5) 1,000 P 2,000 Inventories, 12.31.06 223,000 P 223,000 Unexpired insurance, 12.31.06 6,000 (6) 3,000 3,000 Land 220,000 (1) 10,000 210,000 Buildings 330,000 (1) 15,000 315,000 Accumulated Depreciation - Buildings 6,600 (3a) 300 (3b) 6,300 12,600 Machinery 148,000 (2) 3,000 145,000 Accumulated Depreciation - Machinery 15,000 (2) 1,000 (3b) 15,000 29,000 Sinking fund assets 25,000 (8) 23,500 (9) 1,500 50,000 Unamortized bond discount 25,000 (7) 5,000 20,000 Treasury shares, ordinary 35,000 (1) 35,000-Accounts payable 88,000 88,000 Bond interest accrued 3,750 3,750 1st Mortgage, 6% SF Bonds 226,500 (8) 23,500 250,000 Ordinary shares 500,000 500,000 Premium on ordinary shares 50,000 50,000 Share donation 60,000 (1) 60,000-Retained earnings, 12.31.06 74,150 (7) 2,500 (3a) 300 71,950 Sales 875,000 P 875,000 Purchases 283,500 283,500 Payroll 169,000 169,000 Factory operating expenses 121,500 (3b) 21,300 (6) 3,000 145,800 Administrative expenses 35,000 (5) 1,000 36,000 Bond interest expense 15,000 (7) 2,500 17,500 P1,900,000 P1,900,000 Loss on sale of machinery (2) 2,000 2,000 Merchandise inventory 12.31.07 (4) 175,000 (4) 175,000 175,000 175,000 Sinking fund income (9) 1,500 1,500 P 293,600 P 293,600 P 876,800 P1,051,500 P1,182,000 P1,007,300 Net Income 174,700 174,700 P1,051,500 P1,051,500 P1,182,000 P1,182,000 19-5 Solutions Manual to Accompany Applied Auditing, 2002 Edition 19-2....
View Full Document

This note was uploaded on 01/03/2012 for the course ACC 284 taught by Professor Sevton during the Spring '11 term at Abraham Baldwin Agricultural College.

Page1 / 27

Chapter19 - answer - 19-1. Daffodil, Inc. Adjusting Journal...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online