Bisbee Mountain Company Trial Balance 11/30/17 Cr Cash Accounts Receivable Allow
ID: 2577330 • Letter: B
Question
Bisbee Mountain Company Trial Balance 11/30/17 Cr Cash Accounts Receivable Allowance for Doubtful Accounts Short Term Note Receivable Supplies Inventory Equipment Building Accumulated Depreciation Copyright Accounts Payable Dividends Payable Interest Payable Unearned Revenue ST Note Payable LT Mortgage Payable Bonds Payable Premium on Bonds Payable Common Stock - $1.25 par Paid In Capital In Excess of Par CS Preferred Stock $5 par Paid In Capital In Excess of Par - PS Treasury Stock Retained Earnings Dividends Sales Revenue Sales Returns & Allowances Sales Discounts Cost of Goods Sold Bad Debts Expense Depreciation Expense Wages Expense Rent Expense Insurance Expense Supplies Expense Interest Revenue Interest Expense Gain on Sale of Equipment Income Tax Expense Total 172,000 124,000 1,000 50,000 55,000 62,000 75,000 0 32,000 94,000 12,000 24,000 22,500 300,000 26,840 105,000 86,000 1,000 50,000 3,500 2,000 390,160 7,000 3,000 46,000 5,000 16,000 167,500 98,000 25,000 16,000 1,000 15,000 1,070,000 1,070,000 6,500 46,000Explanation / Answer
JOURNAL FOR BISBEE
DATE
TRANSACTION
AMOUNT $
DEBIT
A/C
CREDIT
A/C
2017
DEC 1
PURCHASE OF BUILDING
300,000
BUILDING
A/C
MORTGAGE A/C
25
ISSUE OF 1000 SHARES COMMON STOCK
6000
CASH
COMMON STOCK $1250
PAID IN CAPITAL
29
DIVIDEND PAID ON ALL SHARES
255000
DIVIENDS
DIVIDENDS
PAYABLE
31
1ST INSTALMENT ON MORTGAGE
1800
MORTGAGE A/C
CASH
MORTGAGE INTEREST ( FOR THE MONTH OF DEC 2017)
2000
INTEREST EXPENSE
MORTGAGE A/C
31
S/T NOTES INTEREST ( FOR THE MONTHS NOV/ DEC 2017)
300
INTEREST
EXPENSE
ACCRUED INTEREST A/C
31
EFFECTIVE INTEREST RATE
1.16% FOR 10 YEARS= $26840/10 YEARS = $2684 + $31
2715
PREMIUM ON BOND PAYABLE
ACCRUED INTEREST A/C
31
TRANSFER OF EARNED INCOME
10000
UNEARNED
INCOME
INCOME
STATEMENT
31
PURCHASED OWN PREFERED STOCK 50 SHARES X $5
250
PREFERRED
STOCK
CASH
31
BOUGHT TREASURY STOCK
50 SHARES @$11
550
TREASURY STOCK
CASH
EXTENDED TRIAL BALANCE
ADJUSTMENTS
INCOME STATEMENT
CLOSING BALANCES
OPENING BALANCES
DR
CR
DR
CR
DEBIT
CR
DEBIT
CREDIT
DEBIT
CREDIT
CASH
172000
0
6000
250
550
0
0
177200
0
BUILDING
0
0
300000
0
0
300000
0
ACC REC
124000
0
0
0
124000
0
ALLOWANCE FOR B/D
0
1000
0
0
0
1000
ST NOTES REC
50000
0
0
0
50000
0
INVENTORY
62000
0
0
0
62000
0
COPYRIGHT
94000
0
0
0
94000
0
SUPPLIES
55000
0
0
0
55000
0
EQUIPMENT
75000
0
0
0
75000
0
ACC DEP
0
32000
0
0
0
32000
ACC PAY
0
12000
0
0
0
12000
ST NOTE PAY
0
22500
0
0
0
22500
UNEARNED REV
0
24000
10000
0
10000
0
14000
COMMON STOCK
0
105000
1250
0
0
0
106250
RETAINED EARN
0
3500
0
0
0
3500
LT MORTGAGE PAYABLE
0
0
300000
1800
2000
0
0
0
300200
BONDS PAYABLE
0
300000
0
0
0
300000
PREMIUM ON BONDS PAY
0
26840
2715
0
0
0
24125
PAID IN CAPITAL EXCESS
0
86000
4750
0
0
0
90750
TREASURY STOCK
0
0
550
0
0
550
0
PREFER STOCK
0
1000
250
0
0
0
750
PRE STK EXCESS OF PAR
0
50000
0
0
0
50000
DIV PAYABLE
0
0
255000
0
0
0
255000
INTEREST PAY
0
0
300
2715
0
0
0
3015
DIVIDENDS
2000
0
255000
257000
0
0
0
SALES
0
390160
0
390160
0
0
SALES RETURNS&ALLOW
7000
0
7000
0
0
0
SALES DISC
3000
0
3000
0
0
0
COS OP INV +PURCHASES
46000
0
46000
0
0
0
BAD DEBTS
5000
0
5000
0
0
0
INSURANCE EXPENSE
25000
0
25000
0
0
0
SUPPLIES EXPENSE
16000
0
16000
0
0
0
INTEREST REV
1000
0
1000
0
0
INTEREST EXPENSE
6500
0
2300
6500
0
0
0
DEPRECIATION EXPENSE
16000
0
16000
0
0
0
WAGES EXPENSE
167500
0
167500
0
0
0
RENT EXPENSE
98000
0
98000
0
0
0
GAIN ON DISPOSAL
0
15000
0
15000
0
0
INCOME TAX EXPENSE
46000
0
46000
0
0
0
LOSS FOR YEAR
0
0
0
276840
276840
0
1070000
1070000
693000
693000
1214590
12145090
JOURNAL FOR BISBEE
DATE
TRANSACTION
AMOUNT $
DEBIT
A/C
CREDIT
A/C
2017
DEC 1
PURCHASE OF BUILDING
300,000
BUILDING
A/C
MORTGAGE A/C
25
ISSUE OF 1000 SHARES COMMON STOCK
6000
CASH
COMMON STOCK $1250
PAID IN CAPITAL
- IN EXCESS OF PAR
- $ 4750
29
DIVIDEND PAID ON ALL SHARES
255000
DIVIENDS
DIVIDENDS
PAYABLE
31
1ST INSTALMENT ON MORTGAGE
1800
MORTGAGE A/C
CASH
MORTGAGE INTEREST ( FOR THE MONTH OF DEC 2017)
2000
INTEREST EXPENSE
MORTGAGE A/C
31
S/T NOTES INTEREST ( FOR THE MONTHS NOV/ DEC 2017)
300
INTEREST
EXPENSE
ACCRUED INTEREST A/C
31
EFFECTIVE INTEREST RATE
1.16% FOR 10 YEARS= $26840/10 YEARS = $2684 + $31
2715
PREMIUM ON BOND PAYABLE
ACCRUED INTEREST A/C
31
TRANSFER OF EARNED INCOME
10000
UNEARNED
INCOME
INCOME
STATEMENT
31
PURCHASED OWN PREFERED STOCK 50 SHARES X $5
250
PREFERRED
STOCK
CASH
31
BOUGHT TREASURY STOCK
50 SHARES @$11
550
TREASURY STOCK
CASH
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