PROBLEMS: SET B AND SET C the book\'s companion website, at www.wiley.com/colleg

Question

PROBLEMS: SET B AND SET C the book's companion website, at www.wiley.com/college/weygandt, and choose the t Companion site to access Problems: Set B and Set C MPREHENSIVE PROBLEM: CHAPTERS 3 TO 10 o Hassc been recorded except for the items described as unrecorded transactions lhouf Company's trial balance at December 31, 2017, is presented below. All 2017 trans- Debit Credit Cash Accounts Receivable Notes Receivable Interest Receivable 28,000 36,800 10,000 36,200 3,600 20,000 150,000 60,000 9,000 Prepaid Insurance Land Equipment Patents Allowance for Doubtful Accounts Accumulated Depreciation-Buildings S 50 50,000 24,000 27,300 mulated Depreciation-Equipment Accounts Payable Salaries and Wages Payable Unearned Rent Revenue Notes Payable (due in 2018) Interest Payable Notes Payable (due after 2018) Owner's Capital Owner's Drawings Sales Revenue Interest Revenue Rent Revenue Gain on Disposal of Plant Assets Bad Debt Expense Cost of Goods Sold 6,000 11,000 30,000 113,600 12,000 905,000 630,000 Expense Interest Expense Other Operating Expenses Amortization Expense Salaries and Wages Expense Total 61,800 110,000 $1.167.400$1.167.400 On May 1, 2017, Hassellhouf purchased equipment for $21,200 plus sales tases of $1,600 (all paid On July 1, 2017,Hassellhouf sold for $3,500 equipment which originally cost $5,000. Accumulated preciation on this equipment at January 1, 2017, was $1,800, 2017 depreciation prior to the sale 2 0h ael 2017, Hassellbhouf sold on account $9,000 of inventory that cont $6,300 Th te receivable is a one-year, 8% note dated April 1, 2017 No interest has been recorded. , of the equipment was $450. ouf estimates that uncollectible accounts receivable at yearend is $3,500. in prepaid insurance represents payment of a $3,600 6-month premium on Septem 13ding is being depreciated using the straight-line method over 30 years. The salhage value

Explanation / Answer

(a) journal entries Date Explanation Debit Credit 1. Equipment 22800      Cash 22800 2. Depreciation expense-equipment 450      Accumulated depreciation-eqipment 450 Cash 3500 Accumulated depreciation-equipment (1800+450) 2250      Equipment 5000      Gain on disposal 750 3. Accounts receivable 9000      Sales 9000 4. Bad debts expense 3500      Allowance for doubtful accounts 3500 5. Interest receivable (10000 * 0.08 * 9/12) 600      Interest revenue 600 2400 6. Insurance expense 2400      Prepaid insurance 7. Depreciation expense - building 4000      Accumulated depreciation - building 4000 8. Depreciation expense-equipment 9900      Accumulated depreciation - equipment 9900 [($60000 - $5000 - $5500) / 5] 9. Depreciation expense-equipment 2800      Accumulated depreciation- equipment 2800 [( $22800 - $1800) / 5 ] * 8 / 12 10. Amortisation expense-patents 900      Patent 900 11. Salaries expense 5200      Salaries payable 5200 12. Unearned rent (6000/3) 2000       Rent revenue 2000 13. Interest expense 3690      Interest payable 3690 ($11000 + $30000) * 9% 3. Cost of goods sold 6300      Merchandise inventory 6300

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