The Goodyear Tire & Rubber Company included the following items in its December

Question

The Goodyear Tire & Rubber Company included the following items in its December 31, 2008, balance sheet ($ in millions): Prepaid expenses (a current asset) $ 295 United States and foreign taxes (a current liability) 156 1) Analyze the impact of the following transactions on the financial position of Goodyear as of January 31, 2009. Prepare your analysis in the same format used when the adjustment process. Also show adjusting journal entries. a) On January 31, an adjustment of $5 millions was made for the rental of various retail outlets that has originally increased Prepaid Expenses but had expired. B) during December 2008, Goodyear sold tires for $ 7 million cash to U-Haul, but delivery was not made until January 28,2009. Unearned revenue had been increased in December. No other adjustments had been made since then. Prepare the adjustment on January 31. C) Goodyear had loaned cash to several of its independent retail dealers. As of January 31, the dealers owed $6 millions of interest that had been unrecorded. d) On January 31, Goodyear increased its accrual of federal income taxes by $68 million. 2) Compute the ending balances on January 31, 2009, in Prepaid Expenses and in U.S and foreign Taxes Payable.

Explanation / Answer

All figures in millions: a.Rentals dr 5, cash 5 b.No adjustment entry for stock of customers in godown. c.Interest Receivable dr 68, interest income 68 Please consider the time devoted to make this reply by rating this as lifesaver. Thank u in advance. God bless u :)

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.