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Chrome File Edit View History Bookmarks People Window Help 35% Fri 11:54 AM E CengageNOWv2 Online teaching and learning resource from Cengage Learning v2.cengagenow.com/ilrn/takeAssignment takeAssignmentMain.doPinvokers&takeAssignmentSessionLocator;=assignment-takeBinprogress-false Comprehensive Problem 3 Part 4: Note: You must complete parts 1, 2, and 3 before completing part 4 of this comprehensive problem Based on the following selected data, journalize the adjusting entries as of December 31 of the current year For a compound transaction, if an amount box does not require an entry, leave it blank. If no entry is required, select "No entry required" from the dropdown and leave the amount boxes blank. a. Estimated uncollectible accounts at December 31, 16,000, based on an aging of accounts receivable. The balance of Allowance for Doubtful Accounts at December 31 was $2,000 (debit) Date Description Debit Credit Dec. 31 b. The physical inventory on December 31 indicated an inventory shrinkage of $3,300 Date Description Debit Credit Dec. 31 C. Prepaid insurance expired during the year,22,820 Check My Work 2 more Check My Work uses remaining. Previous Next Assignment Score: 0.0% Email Instructor Save and Exit Submit Assignment for Grading 24

Explanation / Answer

Notes and calculations:

Please use similar account nomenclature as used in parts 1, 2, and 3 of the problem or the chart of accounts if provided with the question. The same cannot be confirmed since only one part of the problem has been posted.

*Inventory shrinkage can also be directly debited to the cost of goods sold.

** Vacation pay expense can also be debited to salaries and wages expense.

Depreciation on buildings = $900000 x 4% = $36000

Straight-line depreciation rate = 100% / 50 years = 2%

Double-declining-balance rate = 200% x 2% = 4%

Depreciation on office equipment = ($246000 - $26000) / 5 years = $220000 / 5 years = $44000

Depreciation on store equipment = ($112000 - $12000) / 10 years = $100000 / 10 years = $10000

Interest receivable has been computed from Oct. 17 to Dec. 31 presuming the same has not been accrued on a monthly basis earlier in the problem as information regarding the same is not provided.

No. Date Description Debit Credit a. Dec. 31 Bad debts expense 18000 Allowance for doubtful accounts 18000 b. Dec. 31 Inventory shrinkage expense* 3300 Inventory 3300 c. Dec. 31 Insurance expense 22820 Prepaid insurance 22820 d. Dec. 31 Office supplies expense 3920 Office supplies 3920 e. Dec. 31 Depreciation expense 90000 Accumulated depreciation-Buildings 36000 Accumulated depreciation-Office equipment 44000 Accumulated depreciation-Store equipment 10000 f. Dec. 31 Amortization expense ($48000 / 8 years) 6000 Patent 6000 g. Dec. 31 Depletion expense ($546000 x 50000/910000) 30000 Accumulated depletion 30000 h. Dec. 31 Vacation pay expense** 10500 Vacation payable 10500 i. Dec. 31 Warranty expense (4% x $1900000) 76000 Warranty payable 76000 j. Dec. 31 Interest receivable 1875 Interest revenue ($100000 x 9% x 75/360) 1875

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