Please fix red boxes which is wrong answers. Comprehensive Problem 9 Kenseth Cor
ID: 2487856 • Letter: P
Question
Please fix red boxes which is wrong answers.
Comprehensive Problem 9 Kenseth Corporation's unadjusted trial balance at December 1, 2014, is presented below Debit Credit Cash Accounts Receivable Notes Receivable Interest Receivable Inventory Prepaid Insurance Land Buildings Equipment Patent Allowance for Doubtful Accounts Accumulated Depreciation-Buildings Accumulated Depreciation-Equipment Accounts Payable Salaries and Wages Payable Notes Payable (due April 30, 2015) Interest Payable Notes Payable (due in 2020) Common Stock Retained Earnings Dividends Sales Revenue Interest Revenue Gain on Disposal of Plant Assets $25,070 36,350 8,200 36,320 3,840 20,000 141,000 60,500 10,530 $590 47,000 24,200 27,500 12,000 35,310 57,700 11,110 14,700 939,700Explanation / Answer
Income Statement $ Net Sales (939700+5500) 9,45,200 Cost of Goods sold (635000+3200) 6,38,200 Gross Profit 3,07,000 Operating Expenses Salaries 1,10,660 other operating Exp 61,800 Depreciation 14,735 Bad Debts Exp - Insurance Exp 2,560 Amortrization 1,170 Total Operating Exp 1,90,925 Income from Operation 1,16,076 Other revenue Gain on Disposal of Plant 1,409 Interest revenue 492 1,901 Other Exp Interest Exp 4,731 Net income/(loss) before tax 1,13,245 Income tax Exp 12,810 Net Income after tax 1,00,435 Retained earning statement Opening Bal 11110 Add:- Net income after tax 1,00,435 1,11,545 Less:- Dividend 14700 Closing retained earning 96,845 *Depreciation On Building =(141000-31500)/30 3650 On Equipment =(60500-6050)/5 10890 On New Equipment =((16800+1200-1920)/5)/360*30 268 Depreciation on asset sold for one month =((4900-490)/5)/360*30 -74 Total Depreciation 14,735 Gain on Sale of Fixed Asset Sale value 3,530 Less:- Cost -4,900 Add:- Acc Dep 1,970 Add:- Dep for the year 809 =((4900-490)/5)/360*330 Gain on Sale 1,409