Please fix red boxes which are wrong answers. Comprehensive Problem 9 Kenseth Co
ID: 2487857 • Letter: P
Question
Please fix red boxes which are 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
Kenseth Corporation All Amounts in $ Balance Sheet as on December 31, 2014 Assets Current Assets Cash 3820 Accounts Receivable 41850 Allowance for Doubtful Accounts 4730 37120 Notes Receivable 8200 Interest Receivable 492 Inventory 33120 Prepaid Insurance 2560 Current Assets 85312 Fixed Assets Land 20000 Buildings 141000 Accumulated Depreciation - Buildings 50650 90350 Equipment 73600 Accumulated Depreciation - Equipment 33388 40212 Patent (Net of Amortisation) 9360 Total Assets 245234 Liabilities and Shareholders' Equity Current Liabilities Accounts Payable 27500 Salaries and Wages Payable 2080 Income Taxes Payable 12810 Notes Payable (due 30 April, 2015) 12000 Interest Payable 4731 Current Liabilities 59121 Non-Current Liabilities Notes Payable (due in 2020) 35310 Shareholders' Equity Common Stock 57700 Retained Earnings 93103 Total Liabilities and Shareholders' Equity 245234 Income Statement for the year ended December 31, 2014 Sales Revenue 945200 Cost of Goods Sold 638200 Contribution Margin 307000 Interest Revenue 492 Gain on Disposal of Plant Assets 1040 308532 Salaries and Wages Expense 110660 Bad Debt Expense 4140 Insurance Expense 1280 Other Operating Expense 61800 Depreciation Expense 15248 Amortization Expense 1170 Interest Expense 4731 199029 Net Income before Taxes 109503 Income Tax Expense 12810 Net Income post Taxes 96693 Dividends declared and paid 14700 Transfer to Retained Earnings 81993