Floppy is a small company and records adjusting entries & closing entries only at fiscal (calendar) year end. Correcting and adjusting entries have not been recorded. Additional Information :
Question
Floppy is a small company and records adjusting entries & closing entries only at fiscal (calendar) year end.
Correcting and adjusting entries have not been recorded.
Additional Information :
a. Notes Receivables is a 3 months, 6% note accepted on November 1, 2014.
b. Long term notes payable is a 5-year , 5% note, that was signed on July 1, 2014. Interest is payable annually.
c. Building is depreciated at 3% per year. There is no salvage value.
d. Equipment is depreciated at 15% year. There s no salvage value.
e. Floppy discovered, on December 30th, that the inexperienced bookkeeper recorded in the general journal and general ledger that days $1500 cash sales as a debit to accounts receivable and a credit to sales revenue.
f. The year -end physical count for merchandise Inventory reflected a value of $51,500. Any difference in value will not be considered theft or loss.
g. Salaries for the last half of December , payable in January, amount to $5,500.
h. Floppy estimates that of the accounts receivable 5% will no be collectible.
Required:
a, Prepare in journal form , any required correcting entries
b. prepare in journal form , all end of the period adjusting entries
c. prepare a December adjusted trial balance
d. prepare a classified balance sheet for the year ended December 31,2014.
e. prepare in journal form, the closing entries for the year ended December 31, 2014.
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