E3 16b closing entries for a corporation presented

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E3-16B (Closing Entries for a Corporation)Presented below are selected account balances for Kirby Co. as of December 31, 2012. Merchandise Inventory 12 ⁄ 31 ⁄ 12 $24,000Sales $164,000Common Stock 30,000Cost of Goods Sold 90,280Retained Earnings 18,000Selling Expenses 6,400Dividends 7,200Administrative Expenses 15,200Sales Returns and Allowances 4,800Income Tax Expense 12,000Sales Discounts 6,000Instructions: Prepare closing entries for Kirby Co. on December 31, 2012E3-17B (Transactions of a Corporation, Including Investment and Dividend)Scott Loder opened Ledford Miniature Golf and Driving Range Inc. on March 1. The following selected events and transactions occurred during March.Mar. 1Invested $62,500 cash in the business in exchange for common stock.3Purchased Moises Moreno’s Golf Land for $47,500 cash. The price consists of land $12,500; building $27,500; and equipment $7,500. (Make one compound entry.)5Advertised the opening of the driving range and miniature golf course, paying advertising expenses of $2,000.6Paid cash $1,850 for a one-year insurance policy.10 Purchased golf equipment for $3,125 from Moore Company, payable in 30 days.18 Received golf fees of $1,500 in cash.25 Declared and paid a $625 cash dividend.30Paid wages of $1,125.30Paid Moore Company in full.31 Received $950 of fees in cashLedford uses the following accounts: Cash Equipment Service RevenuePrepaid Insurance Accounts Payable Advertising ExpenseLand Common Stock Wages ExpenseBuildings DividendsInstructions: Journalize the March transactions.E3-18B (Cash to Accrual Basis)June Murray, M.D., maintains the accounting records of Murray Clinic on a cash basis. During 2012, Dr. Murray collected $285,200 from her patients and paid $110,940 in expenses. At January 1, 2012, and December 31, 2012,she had accounts receivable, unearned service revenue, accrued expenses, and prepaid expenses as follows. All long-lived assets are rented.
January 1, 2012December 31, 2012Accounts receivable$18,500$31,854Unearned service revenue5,6808,222Accrued expenses6,8704,216Prepaid expenses3,8346,464Instructions: Prepare a schedule that converts Dr. Murray‘s “excess of cash collected over cash disbursed” for the year 2012 to net income on an accrual basis for the year 2012E3-19B (Cash and Accrual Basis)Letterman Corp. maintains its financial records on the cash basis of accounting. Interested in securing a long-termloan from its regular bank, Letterman Corp. requests you as its independent CPA to convert its cash-basis income statement data to the accrual basis. You are provided with the following summarized data covering 2011, 2012, and 2013.201120122013Cash receipts from sales:$600,000$201,000$75,000On 2011 sales–0–701,000161,000On 2012 sales602,000On 2013 salesCash payments for expenses:On 2011 expenses360,000 42,00025,000On 2012 expenses10,000a406,00071,000On 2013 expenses21,000b451,000aPrepayments of 2012 expenses.bPrepayments of 2013 expenses.Instructions(a)Using the data above, prepare abbreviated income statements for the years 2011 and 2012 on the cash basis.(b) Using the data above, prepare abbreviated income statements for the years 2011 and 2012 on the accrual basis.E3-20B (Adjusting and Reversing Entries)When the accounts of David Nguyen Inc. are examined, the adjusting data listed below are uncovered on

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