Reference no: EM131814905
Qusetion: Journalizing adjusting entries and identifying the impact on financial statements Taylor Fishing Charters has collected the following data for the December 31 adjusting entries:
a. The company received its electric bill on December 20 for $225 but will not pay it until January 5. (Use the Utilities Payable account.)
b. Taylor purchased a nine-month boat insurance policy on November 1 for $9,000. Taylor recorded a debit to Prepaid Insurance.
c. As of December 31, Taylor had earned $2,000 of charter revenue that has not been recorded or received.
d. Taylor's fishing boat was purchased on January 1 at a cost of $44,500. Taylor expects to use the boat for five years and that it will have a residual value of $4,500. Determine annual depreciation assuming the straight-line depreciation method is used.
e. On October 1, Taylor received $8,000 prepayment for a deep-sea fishing charter to take place in December. As of December 31, Taylor has completed the charter.
Requirements: 1. Journalize the adjusting entries needed on December 31 for Taylor Fishing Charters. Assume Taylor records adjusting entries only at the end of the year.
2. If Taylor had not recorded the adjusting entries, indicate which specific category of accounts on the financial statements would be misstated and if the misstatement is overstated or understated. Use the following table as a guide.
|
Compare the ending balances of the t-accounts
: Understanding the alternative treatment of unearned revenues At the beginning of the year, Dapper Advertising owed customers $2,400 for unearned revenue.
|
|
Difference between mission and vision statement
: Please explain the difference between mission and vision statement, note at the www.jcrew.com website, a vision is not given.
|
|
Describe the risk residual risk and probability
: Describe the Risk, Residual Risk, Probability, Uncertainty in Decision Making, Structured Critical Reasoning and Problem Solving Attitudes.
|
|
Discuss tax partnership for tax filing purposes
: Noah, Sadie, and Maven form a LLC using tax partnership for tax filing purposes. Noah contributes $1 Million cash for a 1/3 interest in capital and profits
|
|
Define specific category of accounts on financial statements
: If Taylor had not recorded the adjusting entries, indicate which specific category of accounts on the financial statements would be misstated.
|
|
What is roxie bed and breakfast earnings per share
: What is Roxie's Bed & Breakfast's book value per share? What is Roxie's Bed & Breakfast's earnings per share?
|
|
Benefits of a firm engaging in strategic planning
: Please state four financial and four nonfinancial benefits of a firm engaging in strategic planning, explain why both internal & external factors.
|
|
Private profit ahead of public good by mark rosenman
: Refer to the following article: How Social Impact Bonds put Private Profit ahead of Public Good by Mark Rosenman
|
|
How much equity does tiggie have on its balance sheet
: If the firm's total debt at year-end was $30 million, how much equity does Tiggie's have on its balance sheet?
|