- The document provides information and questions regarding adjusting entries that need to be made on a company's worksheet for the year ended December 31, 2019. It includes details on uncollectible accounts, depreciation, accrued wages and taxes, prepaid expenses, and notes payable.
- Students are asked to calculate and record adjusting journal entries for items like depreciation, prepaid insurance, and accrued interest expense based on the information provided.
- The questions aim to test understanding of adjusting entries for various accounts at the end of an accounting period.
1. ACC 291 Week 4 Practice Connect Assignment
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attempt 1
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.
Equipment purchased by Park Consultancy for
2. $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?
On December 31, 2019, Giant Plumbing Supply
owed wages of $11,400 to its factory employees,
who are paid weekly.
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.
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.
2
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.
3. 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.
3
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.
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.
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.
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
4. 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.
4
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?
5
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.
5. 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.
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6. 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.
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