Financial Accounting (12th Edition) (What's New in Accounting)

12th Edition

ISBN: 9780134725987

Author: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.

Publisher: PEARSON

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Textbook Question

Chapter 3, Problem 3.25AE

(Learning Objective 5: Close the books) Prepare the closing entries from the following selected accounts from the records of North Pole Enterprises at December 31, 2018:

Cost of services sold...........	$14,800	Service revenue......................	$32,200
Accumulated depreciation...	41,100	Depreciation expense...........	4,100
Selling, general, and administrative expenses....	6,200	Other revenue .....................	1,000
Selling, general, and administrative expenses....	6,200	Dividends declared...............	500
Retained earnings, December 31, 2017…………	2,000	Income tax expense..............	900
Retained earnings, December 31, 2017…………	2,000	Income tax payable………...	600

How much net income did North Pole Enterprises earn during 2018? Prepare a T-account for Retained Earnings to show the December 31, 2018, balance of Retained Earnings.

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Chapter 3, Problem 3.24AE

Chapter 3, Problem 3.26AE

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The Trial Balance TBA Limited contained the following accounts (alphabetically) at December 31, 2020, the end of company's fiscal year. Accounts .. . .. .. . .. Balances ($).... ||| .... Accounts .. . . . Balances ($) Accumulated Depreciation-Building. . 127000 .... ||| . Accumulated Depreciation-Equipment. 35000.... ||| .... Merchandise Inventory . 227000 Additional Paid in Capital-Common Stock. 229000.... ||| . ... Mortgage Loan .. . . 104000 Loss on Sale of Property . . 7310 Auditors Fee .. .. ... . .... .... ..... ..... .. 204000.... I|I .... Rent Revenue . . . . 53000 Buildings. . 401000.... ||| .... Retained Earnings 51400 ....... . u. Cash 199660 - ||| . ... Salaries and Wages Expense . . 104000 .... .... .... ........ .... ..... ... ..... ..... ..... ... Common Stock ($2 each).. III .... Sales .. . .. ... . .. .. . 1755000 **** .... .... .... .. 119000 Cost of Goods Sold . . . . 1094000 .... ||| .... Sales Returns and Allowances .. 9030 Equipment . . ... .... ... .........…

The Trial Balance TBA Limited contained the following accounts (alphabetically) at December 31, 2020, the end of company's fiscal year. Accounts..... ..... ** Balances ($)....||| .... Accounts ... ........... ...... ..... Balances ($) Accumulated Depreciation-Building.... ..... 121000 . ... ||| .... Loss on Sale of Property Accumulated Depreciation-Equipment. . 36000.... ||| .... Merchandise Inventory Additional Paid in Capital-Common Stock.. 222000.... ||| - . . . Mortgage Loan.. . . **** .... .... ... 7380 231000 ............. 109000 Auditors Fee ... .... .... .... ... ... ... ..* 209000.... III.... Rent Revenue .. .... ... .... .... .. 53000 Retained Earnings .. . 52900 Buildings.. 410000.... |II - .......... ................... ............ Cash ... ......... ****** 150710.. .. |||. ... Salaries and Wages Expense 104000 Common Stock ($2 each).... ... .... .... .... ... ....... 104000....II.... Sales .... ........ .... .... .... ..... .*.* *.** 1754000 Cost of Goods Sold 1086000....…

The accounting records of Nettle Distribution show the following assets and liabilities as of December 31,2018 and 2019.December 31 2018 2019Cash . . . . . . . . . . . . . . . . . . . . . . . . $ 64,300 $ 15,640Accounts receivable . . . . . . . . . . . 26,240 19,100Office supplies . . . . . . . . . . . . . . . . 3,160 1,960Office equipment . . . . . . . . . . . . . . 44,000 44,000Trucks . . . . . . . . . . . . . . . . . . . . . . . 148,000 157,000December 31 2018 2019Building . . . . . . . . . . . . . . . . . . . . . $ 0 $80,000Land . . . . . . . . . . . . . . . . . . . . . . . . 0 60,000Accounts payable . . . . . . . . . . . . . 3,500 33,500Note payable . . . . . . . . . . . . . . . . . 0 40,000Required1. Prepare balance sheets for the business as of December 31, 2018 and 2019. Hint: Report only total equityon the balance sheet and remember that total equity equals the difference between assets and liabilities.2. Compute net income for 2019 by comparing total equity amounts for these…

Chapter 3 Solutions

Financial Accounting (12th Edition) (What's New in Accounting)

Ch. 3 - If Oxbow Corporation dees not record a sale mace...Ch. 3 - Which of the following transactions would be...Ch. 3 - A physician performs medical services for a...Ch. 3 - The Animal Adventure zoo gift shop sells stuffed...Ch. 3 - According to U S GAAP, when should revenue be...Ch. 3 - Prob. 6QC Ch. 3 - Prob. 7QC Ch. 3 - Prob. 8QC Ch. 3 - What data flows from the statement of retained...Ch. 3 - Which financial statement reports assets,...

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Solution Summary: The author explains that closing entries produce a zero balance in each temporary account. The net income for Enterprise NP is 7,200.

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