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ACC 291 Week 4 Practice Connect Practice Assignment
1. During the year 2019, Sampson Company had net credit sales of $1,950,000. Past experience shows that 1.5 percent of the firm’s net credit sales result in uncollectible accounts.
2. Equipment purchased by Park Consultancy for $38,220 on January 2, 2019, has an estimated useful life of 10 years and an estimated salvage value of $2,700. What adjustment for depreciation should be recorded on the firm’s worksheet for the year ended December 31, 2019?
3. On December 31, 2019, Giant Plumbing Supply owed wages of $11,400 to its factory employees, who are paid weekly.
4. On December 31, 2019, Giant Plumbing Supply owed the employer’s social security (6.2 percent) and Medicare (1.45 percent) taxes on the entire $11,400 of accrued wages for its factory employees.
5. On December 31, 2019, Giant Plumbing Supply owed federal (0.6 percent) and state (5.4 percent) unemployment taxes on the entire $11,400 of accrued wages for its factory employees.
On December 1, 2019, Jim’s Java Joint borrowed $50,000 from its bank in order to expand its operations. The firm issued a four-month, 6 percent note for $50,000 to the bank and received $49,000 in cash because the bank deducted the interest for the entire period in advance.
In general journal form, show the entry that would be made to record this transaction and the adjustment for prepaid interest that should be recorded on the firm’s worksheet for the year ended December 31, 2019.
1. On December 31, 2019, the Notes Payableaccount at Northwood Manufacturing Company had a balance of $16,000. This balance represented a three-month, 7.5 percent note issued on November 1.
2. On January 2, 2019, Hitech Computer Consultants purchased flash drives, paper, and other supplies for $5,230 in cash. On December 31, 2019, an inventory of supplies showed that items costing $1,590 were on hand. The Suppliesaccount has a balance of $5,230.
3. On September 1, 2019, North Dakota Manufacturing paid a premium of $14,640 in cash for a one-year insurance policy. On December 31, 2019, an examination of the insurance records showed that coverage for a period of four months had expired.
4. On May 1, 2019, Headcase Beauty Salon signed a one-year advertising contract with a local radio station and issued a check for $10,800 to pay the total amount owed. On December 31, 2019, the Prepaid Advertisingaccount has a balance of $10,800.
For each of the above independent situations, prepare the adjusting entries that must be made on the December 31, 2019, worksheet assuming no previous adjusting entries have been made during the year.
The Income Statement section of the Johnson Company worksheet for the year ended December 31, 2019, has $199,000 recorded in the Debit column and $215,345 in the Credit column on the line for the Income Summary account.
What were the beginning and ending balances for Merchandise Inventory?
On December 31, 2019, the Notes Payable account at Vanessa’s Boutique Shop had a balance of $90,000. This amount represented funds borrowed on a six-month, 8 percent note from the firm’s bank on December 1.
Record the journal entry for interest expense on this note that should be recorded on the firm’s worksheet for the year ended December 31, 2019.