PROBLEM.01: Suppose you serve as controller for Dillon Corporation, Inc. (oW). Y

Question

PROBLEM.01: Suppose you serve as controller for Dillon Corporation, Inc. (oW). You are need to prepare DWT's adjusting journal entries for the year ended October 31, 2017. You determine the following from your review the DWI's records 1. A physical count of Dillion's 10/31/2017 inventory indicated that $25,500 was in the warehouse 2. A review of year-end purchase orders indicate that $900 purchases was in-transit under terms FOB shipping point and $750 purchases was in-transit under terms FO8 destination. DWI purchased its balance in equipment on April 1, 2012. DWI uses the straight-line depreciation method for all equipment. DwC borrowed $30,000 on December 1, 2016 at a 4% interest rate. Also, you discovered that Dwi paid off another note having a face value of $50,000 on September 30, 2017 3. 4. TASK: Please prepare AJEs for DWI at October 31, 2017 Dillon Corporation, Inc. ADJUSTED TRIAL BALANCE at October 31, 2017 Debit 10,500 150,000 5,000 25,000 300,000 Credit Cash Accounts receivable Accumulated depreclation-equipment Accounts payable Notes payable @ 4% Salaries payable interest payable Common stock Retained earningS Sales revenue Costs of goods sold Salaries expense Rent expense Depreciation expense Interest expense Advertising expense 125,000 30,000 30,000 4,000 1,000 200,000 50,000 400,000 180,000 120,000 15,000 30,000 2,000 Totals Debit Credit DWI JOURNAL

Explanation / Answer

Adjusting entries 1 Inventory 500               Cost of goods sold 500 2 Inventory 900               Accounts payable 900 3 Depreciation expense 25000              Accumulated depreciation-equipment 25000 4 Interest expense 1100 (30000*4%*11/12)              Interest payable 1100

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

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