Reference no: EM13891145
Transaction analysis-various accounts Enter the following column headings across the top of a sheet of paper:
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Transaction/
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Current
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Current
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Long-Term
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Net
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Adjustment
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Assets
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Liabilities
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Debt
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Income
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Enter the transaction/adjustment letter in the first column and show the effect, if any, of each of the transactions/adjustments on the appropriate balance sheet category or on the income statement by entering the amount and indicating whether it is an addition (1) or a subtraction (-). You may also write the journal entries to record each transaction/adjustment.
a. Wages of $867 for the last three days of the fiscal period have not been accrued.
b. Interest of $170 on a bank loan has not been accrued.
c. Interest on bonds payable has not been accrued for the current month. The company has outstanding $240,000 of 8.5% bonds.
d. The discount related to the bonds in part c has not been amortized for the current month. The current month amortization is $50.
e. Product warranties were honored during the month; parts inventory items valued at $830 were sent to customers making claims, and cash refunds of $410 were also made.
f. During the fiscal period, advance payments from customers totaling $1,500 were received and recorded as sales revenues. The items will not be delivered to the customers until the next fiscal period. Record the appropriate adjustment.