Cycle exercises iv worksheet 6 a general journal

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Unformatted text preview: es 124,830 - - - - - 36,000 - - - - - - - - - - - Depreciation Expenses Supplies Expenses Interest expense 22,500 - $ 1,870,350 $ 1,870,350 $ - - $ - $ - $ Worksheet 6 (c) McCORMICK CORPORATION Income Statement For the Year Ending December 31, 20X8 Revenues $ Services to customers - Expenses $ Wages - Utilities - Selling - Depreciation - Supplies - Interest - $ Net income - Download free eBooks at bookboon.com 31 - Problem 6: Worksheet Accounting Cycle Exercises IV McCORMICK CORPORATION Statement of Retained Earnings For the Year Ending December 31, 20X8 $ - $ - $ Beginning retained earnings - $ - Plus: Net income Less: Dividends - Ending retained earnings McCORMICK CORPORATION Balance Sheet December 31, 20X8 Assets Current assets $ Cash - Accounts receivable - Supplies - Property, plant & equipment $ Equipment Less: Accumulated depreciation - $ Total assets - $ - Liabilities Current liabilities $ Accounts payable - Utilities payable - Wages payable - Unearned revenue - Long-term liabilities Download free eBooks at bookboon.com 32 Problem 6: Worksheet Accounting Cycle Exercises IV Notes payable $ Total liabilities - Stockholders’ equity $ Capital stock Retained earnings - Total stockholders’ equity $ Total liabilities and equity - Please click the advert d) Download free eBooks at bookboon.com 33 Problem 6: Solution Accounting Cycle Exercises IV Solution 6 (a) GENERAL JOURNAL Date Dec. 31 Accounts Debit Unearned Revenue Credit 37,500 Revenues 37,500 To adjust Unearned Revenue for portion earned ($93,750 X 40%) Dec. 31 Supplies Expense 12,000 Supplies 12,000 To record supplies used ($21,000 $9,000 = $12,000) Dec. 31 Utilities Expense 4,500 Utlities Payable 4,500 To record accrued utilities Dec. 31 Wages Expense 11,700 Wages Payable 11,700 To record accrued wages Dec. 31 Depreciation Expense 9,300 Accumulated Depreciation 9,300 To record depreciation expense Download free eBooks at bookboon.com 34 Problem 6: Solution Accounting Cycle Exercises IV Solution 6 (b) McCORMICK CORPORATION Worksheet for Adjusted Trial Balance December 31, 20X8 Debits Cash Accounts Receivable $ Debits 91,620 $ Debits - $ Debits - $ Debits - $ Debits 91,620 $ - 135,000 - - - 135,000 - 21,000 - - 36,000 (15,000) - 733,500 - - - 733,500 - Accumulated Deprec. - 139,500 - 27,900 - 167,400 Accounts Payable - 38,100 - - - 38,100 Utilities Payable - - - 13,500 - 13,500 Wages Payable - - - 35,100 - 35,100 Supplies Equipment Unearned Revenue - 93,750 112,500 - - (18,750) Notes Payable - 240,000 - - - 240,000 Capital Stock - 300,000 - - - 300,000 Retained Earnings, Jan. 1 - 189,600 - - - 189,600 Dividends 36,000 - - - 36,000 - Revenues - 869,400 - 112,500 - 981,900 643,800 - 35,100 - 678,900 - Utilities Expense 26,100 - 13,500 - 39,600 - Selling Expenses 124,830 - - - 124,830 - 36,000 - 27,900 - 63,900 - - - 36,000 - 36,000 - Wages Expense Depreciation Expenses Supplies Expenses Interest expense 22,500 - $ 1,870,350 $ 1,870,350 $ 225,000 $ 22,500 - 225,000 $ 1,946,850 $ 1,946,850...
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