Listed below are selected transactions of Crane Department Store for the current year ending December 31. 1. On December 5, the store received $490 from the Selig Players as a deposit to be returned after certain furniture to be used in stage production was returned on January 15. During December, cash sales totaled $803,250, which includes the 5% sales tax that must be remitted to the state by the fifteenth day of the following month. 3. On December 10, the store purchased for cash three delivery trucks for $119,200. The trucks were purchased in a state that applies a 5% sales tax. 4. The store determined it will cost $91,600 to restore the area (considered a land improvement) surrounding one of its store parking lots, when the store is closed in 2 years. Crane estimates the fair value of the obligation at December 31 is $82,900. 2. Prepare all the journal entries necessary to record the transactions noted above as they occurred and any adjusting journal entries relative to the transactions that would be required to present fair financial statements at December 31. Date each entry. For simplicity, assume that adjusting entries are recorded only once a year on December 31. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually)
Listed below are selected transactions of Crane Department Store for the current year ending December 31. 1. On December 5, the store received $490 from the Selig Players as a deposit to be returned after certain furniture to be used in stage production was returned on January 15. During December, cash sales totaled $803,250, which includes the 5% sales tax that must be remitted to the state by the fifteenth day of the following month. 3. On December 10, the store purchased for cash three delivery trucks for $119,200. The trucks were purchased in a state that applies a 5% sales tax. 4. The store determined it will cost $91,600 to restore the area (considered a land improvement) surrounding one of its store parking lots, when the store is closed in 2 years. Crane estimates the fair value of the obligation at December 31 is $82,900. 2. Prepare all the journal entries necessary to record the transactions noted above as they occurred and any adjusting journal entries relative to the transactions that would be required to present fair financial statements at December 31. Date each entry. For simplicity, assume that adjusting entries are recorded only once a year on December 31. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually)
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 10RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...
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Transcribed Image Text:Listed below are selected transactions of Crane Department Store for the current year ending December 31.
On December 5, the store received $490 from the Selig Players as a deposit to be returned after certain furniture to be
used in stage production was returned on January 15.
1.
2.
During December, cash sales totaled $803,250, which includes the 5% sales tax that must be remitted to the state by the
fifteenth day of the following month.
On December 10, the store purchased for cash three delivery trucks for $119,200. The trucks were purchased in a state
that applies a 5% sales tax.
3.
The store determined it will cost $91,600 to restore the area (considered a land improvement) surrounding one of its store
parking lots, when the store is closed in 2 years. Crane estimates the fair value of the obligation at December 31 is $82,900.
4.
Prepare all the journal entries necessary to record the transactions noted above as they occurred and any adjusting journal entries
relative to the transactions that would be required to present fair financial statements at December 31. Date each entry. For
simplicity, assume that adjusting entries are recorded only once a year on December 31. (If no entry is required, select "No Entry" for the
account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
>
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