Reference no: EM132479336
Record property tax; determine financial statement impact.
Part 1: Seaboard Company receives its annual property tax bill of $24,000 for the 2017 calendar year on May 31, 2017, and it is payable on July 31, 2017. Seaboard has a December 31 fiscal year end.
Instructions
Question (a) Make the journal entries for Seaboard on May 31, July 31, and December 31, 2017, assuming that the company makes monthly adjusting entries. (Assume property tax expense in 2016 was $2,200 per month.)
Question (b) What is recorded on Seaboard's December 31, 2017, balance sheet and income statement for the year ended December 31, 2017, in regard to property taxes?
Account for unearned revenue.
Part 2:
Satterfield publishes a monthly sports magazine, Hockey Hits. Subscriptions to the magazine cost $18 per year. During November 2017, Satterfield sells 15,000 subscriptions beginning with the December issue. Satterfield makes financial statements quarterly and recognizes revenue earned at the end of the quarter. The company uses the accounts Unearned Revenue and Revenue.
Instructions
Question (a) Make the entry in November for the receipt of the subscriptions.
Question (b) Make the adjusting entry at December 31, 2017, to record revenue earned in December 2017.
Question (c) Make the adjusting entry at March 31, 2018, to record revenue earned in the first quarter of 2018.
Account for unearned revenue.
Part 3:
Charleswood Musical Theatre's season begins in November and ends in April, with a different play each month. In October 2017, Charleswood sold 100 season tickets for the 2017-18 season, for $210 each. Charleswood records all season ticket sales as unearned revenue and adjusts its accounts on a monthly basis. The company has a March 31 fiscal year end.
Instructions
Question (a) Make the entry for sale of the season tickets. Date the entry October 31.
Question (b) Make any required adjusting entries on:
1.November 30, 2017
2.March 31, 2018
3.April 30, 2018
Question (c) Determine the balance (after any required adjustments) in Unearned Revenue on:
1.November 30, 2017
2.December 31, 2017
Record sales taxes.
Part 4:
Scoggin rings up sales plus sales taxes on its cash register. On April 10, the register total for sales is $80,000.
Instructions
Question : Journalize the transactions assuming the sales were made in
(a) Quebec,
(b) Nova Scotia, and
(c) Alberta.
Record sales taxes.
Part 5:
In providing accounting services to small businesses, you encounter the following independent situations:
1.Sainsbury rang up $13,200 of sales, plus HST of 13%, on its cash register on April 10.
2.Montgomery rang up $30,000 of sales, before sales taxes, on its cash register on April 21. The company charges 5% GST and no PST.
3.Winslow charges 5% GST and 7% PST on all sales. On April 27, the company collected $25,100 sales in cash plus sales taxes.
Question : Record note payable and note receivable; interest paid at maturity.
Part 6:
On March 1, 2017, Tundra Trees purchased equipment from Edworthy Equipment Dealership in exchange for a seven-month, 8%, $30,000 note payable. Interest is due at maturity. Tundra Trees has a July 31 fiscal year end. Edworthy has a May 31 fiscal year end. Both companies adjust their accounts annually. Tundra honours the note at maturity.
Instructions
Question (a) For Tundra Trees, record all transactions related to the note.
Question (b) For Edworthy Equipment, record all transactions related to the note. Assume the cost of the equipment to Edworthy was $18,000.
Record note payable, interest paid monthly.
Part 7:
On June 1, 2017, Novack Company purchases equipment on account from Moleski Manufacturers for $50,000. Novack is unable to pay its account on July 1, 2017, so Moleski agrees to accept a three-month, 7% note payable from Novack. Interest is payable the first of each month, starting August 1, 2017. Moleski has an August 31 fiscal year end and adjusts its accounts on an annual basis.
Instructions
Question : Record all transactions related to the note for Novack Company.