Solved by Expert Tutors
*Application Problem 3-9A The trial balance for Cozy Fireplaces Inc. for December 31, 2020, follows:
Solved by Expert Tutors
Question

Hi, I am struggling to solve this problem. Thank you!

Screen Shot 2019-09-30 at 7.07.32 PM.pngScreen Shot 2019-09-30 at 7.07.41 PM.pngScreen Shot 2019-09-30 at 7.07.47 PM.png

Screen Shot 2019-09-30 at 7.07.32 PM.png
*Application Problem 3-9A The trial balance for Cozy Fireplaces Inc. for December 31, 2020, follows: Cash $ 88,600
Accounts receivable 37,700
Inventory 94,200
Supplies 5,100
Prepaid rent 46,000
Land 80,300
Building 149,000
Accumulated depreciation, building $19,350
Accounts payable 21,400
Wages payable 0
Interest payable 0
Income tax payable 0
Unearned revenue 12,400
Bank loan payable 40,000
Common shares 151,000
Retained earnings 22,150
Sales revenue 835,000
Cost of goods sold 484,600
Wages expense 95,700
Rent expense 0
Supplies expense 0
Depreciation expense 0
Interest expense 0
Miscellaneous expenses 14,100
Income tax expense 0
Dividends declared 6,000 Totals $1,101,300 $1,101,300
Screen Shot 2019-09-30 at 7.07.41 PM.png
Additional information for adjusting entries: 1. The deposits from customers were for future deliveries. A5 at December 31, three-quarters of these goods had been delivered.
2. There Is $2,000 In wages owed at year end. 3. Rent is paid in advance on the last day of each month. There was a balance of $3,000 in the Prepaid Rent account on January 1, 2020. At the end of January, $3,000 was paid for the February rent and was debited to the
Prepaid Rent account. All the rent payments during the year were treated the same way. The rent for July to December increased to $4,000 per month. (Hint: Determine the amount of rent expense for 2020, as well as the
correct amount that has been prepaid for 2021, and make an adjustment that will bring both these accounts to the correct balances.) . A count of the supplies at year end revealed that $500 of supplies were still on hand.
. The building Is belng depreciated over 20 years with a residual value of $20,000.
. The bank loan was taken out on April 1, 2020. The first interest payment is due on April 1, 2021. The interest rate is 9%. . Income tax for the year should be calculated using a tax rate of 30%. (Hint: After you finish the other adjusting entries, you will have to determine the income before income tax and then calculate the tax as 30% of this
amount.) \Iaxu-I-h Prepare the adjusting entries for the year 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account
titles and enter 0 for the amounts.)
Screen Shot 2019-09-30 at 7.07.47 PM.png

Step-by-step answer

s a molestie consequat, ultrices ac magna. Fusce dui lectus, congue ve ve vel laoreet ac, dictum vitae odio. Dcfacilisis. Pellentesque dapibus efficitxtinlestie consequat, ultrices ac magna. Fusce dui lectusxtinctoa. Fusce dui lectus, congue vel laoreet aotm iet, consectetur adipiscing elit. Nam lacinia pulvinar tortootm ictuctum vitae odio. Donec aliquet. Lorem ipstm i, consectetur adipiscing elit. Nam lacinia pulvinarstm ice dui leoamet, consectetur adipiscing elit. Nam laotsumicitur laoreet. Nam risus ante, dapibus a molestie cootsumctxfacilisis. Pellentesque dapibus efficituotecpulvinar tortor nec facilisis. Pellentesque dapibusotecitur laoofficitur laoreet. Nam risus ante, dapibusotcerem ipsum dolor sit amet, consectetur adipiscing elitotceitur laoiiscing elit. Nam lacinia pulvinar tortoramttes ante, dapibus a molestie consequat, ultrices ac maamtteo


fficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fus

acinia pulvi

telestie consequat, ultrice

, dictum vitae odio. Donec aliquet


oneitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna


susus ante, dapibus a molestie consequ


ac,a. Fusce dui lectus, congue vel laoreet ac, dictum


fng elit. Nam lacinia pulvinar tortor nec facilisis. Pel


iang elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur la

ongue ve

nec facilisis. Pellentesque dap

Subscribe to view the full answer

Subject: Accounting, Business

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Let our 24/7 Accounting tutors help you get unstuck! Ask your first question.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes