I tried to take better pictures. The instructions for the problem are at the end
ID: 2575599 • Letter: I
Question
I tried to take better pictures. The instructions for the problem are at the end. COMPREHENSIVE PROBLEM: CHAPTERS 3 TO 9 CP9 Hassellhouf Company's trial balance at December 31, 2015, is presented below and on page 471. All 2015 transactions have been recorded except for the items described on page 471. Debit Credit Cash Accounts Receivable Notes Receivable Interest Receivable Inventory Prepaid Insurance Land Buildings Equipment Patents Allowance for Doubtful Accounts Accumulated Depreciation-Buildings Accumulated Depreciation-Equipment Accounts Payable Salaries and Wages Payable Unearned Rent Revenue Notes Payable (due in 2016) Interest Payable Notes Payable (due after 2016) Common Stock $ 28,000 36,800 10,000 36,200 3,600 20,000 150,000 60,000 9,000 s 500 50,000 24,000 27,300 0- 6,000 11,000 30,000 50,000 63,600 Dividends 12,000Explanation / Answer
Answer a. Journal Entry Date Particulars Dr. Amt. Cr. Amt. 1 Equipment Dr. 22,800.00 To Cash 22,800.00 2-a Dep. Expenses Dr. 450.00 To Accumulated Dep. - Equipment 450.00 2-b Cash Dr. 3,500.00 Accumulated Dep. - Equipment Dr. 2,250.00 To Equipment 5,000.00 To Gain on Sale of equipment 750.00 3-a Accounts Receivable Dr. 9,000.00 To Sales 9,000.00 3-b Cost of Goods Sold Dr. 6,300.00 To Inventory 6,300.00 4 Bad Debt Expenses Dr. 3,500.00 $4,000 - $500 To Allowance for Doubtful Accounts 3,500.00 5 Interest receivable Dr. 600.00 $10,000 X 8% X 9/12 To Interest Revenue 600.00 6 Insurance Expesnes Dr. 2,400.00 $3,600 X 4/6 To Prepaid Insurance 2,400.00 7 Depreciation Expenses Dr. 4,000.00 ($150,000 - $30,000) / 30 To Accumulated Dep. - Building 4,000.00 8 Depreciation Expenses Dr. 9,900.00 ($55,000 - $5,500) / 5 Years To Accumulated Dep. - Equipment 9,900.00 9 Depreciation Expenses Dr. 2,800.00 ($22,800 - $1,800) / 5 Year X 8/12 To Accumulated Dep. - Equipment 2,800.00 10 Amortization Expenses Dr. 900.00 $9,000 / 10 Years To Patents 900.00 11 Salaries & Wages Expenses Dr. 5,200.00 To Salaries & Wages Payable 5,200.00 12 Unearned Rent Revenue Dr. 2,000.00 $6,000 / 3 To Rent Revenue 2,000.00 13 Interest Expenses Dr. 3,690.00 ($11,000 + $30,000) X 9% To Interest Payable 3,690.00 Answer b. Trial Balance for the Year Ended Dec 31, 2015 Unadjusted Trial Balance Adjustment Adjusted Trial Balance Dr. Cr. Dr. Cr. Dr. Cr. Cash 28,000 3,500.00 22,800 8,700 Accounts Receivable 36,800 9,000.00 45,800 Notes Receivable 10,000 10,000 - Interest Receivable 600.00 600 Inventory 36,200 6,300 29,900 Prepaid Insurance 3,600 2,400 1,200 Land 20,000 20,000 Buildings 150,000 150,000 Equipment 60,000 22,800.00 5,000 77,800 Patents 9,000 900 8,100 Allowance for Doubtful Accounts 500 3,500 4,000 Accumulated Dep - Buildings 50,000 4,000 54,000 Accumulated Dep - Equipment 24,000 2,250.00 13,150 34,900 Accounts Payable 27,300 27,300 Salaries & Wages Payable - 5,200 5,200 Unearned Rent Revenue 6,000 2,000.00 4,000 Notes Payable (due in 2016) 11,000 11,000 Interest Payable - 3,690 3,690 Notes Payable (due after 2016) 30,000 - 30,000 Common Stock 50,000 50,000 Retained Earnings 63,600 63,600 Dividends 12,000 12,000 Sales revenue 905,000 9,000 914,000 Interest Revenue - 600 600 Rent revenue - 2,000 2,000 Gain on Disposal of Plant Assets - 750 750 Bad Debt Expense - 3,500.00 3,500 Cost of Goods Sold 630,000 6,300.00 636,300 Depreciation - 17,150.00 17,150 Insurance Expense - 2,400.00 2,400 Interest Expense 3,690.00 3,690 Other Operating Expenses 61,800 61,800 Amortization Expenses - 900.00 900 Salaries & Wage Expense 110,000 5,200.00 115,200 Total 1,167,400 1,167,400 79,290.00 79,290 1,205,040 1,205,040 Net Income - - - 37,600 Answer c. Hassellhouf Company Income Statement For the Month Ended Dec 31, 2015 Sales Revenue Sales 914,000.00 Less: Cost of Goods Sold 636,300.00 Gross Margin 277,700.00 Operating Expenses Bad Debt Expense 3,500.00 Depreciation 17,150.00 Insurance Expense 2,400.00 Other Operating Expenses 61,800.00 Amortization Expenses 900.00 Salaries & Wage Expense 115,200.00 200,950.00 Net Operating Income 76,750.00 Other Income & Losses Interest Expense 3,690.00 Interest Revenue 600.00 Rent revenue 2,000.00 Gain on Disposal of Plant Assets 750.00 340.00 Net Income (Loss) 76,410.00 Retained Earning Statement Dec 31, 2015 Beginning Balance 63,600.00 Net Income (Loss) 76,410.00 Sub-total 140,010.00 Divdends (12,000.00) Ending Balance 128,010.00 Answer d Hassellhouf Company Balance Sheet 31-Dec-15 Assets Current Assets Cash 8,700.00 Accounts Receivable 45,800.00 Allowance for Doubtful Accounts (4,000.00) 41,800.00 Notes Receivable 10,000.00 Interest Receivable 600.00 Inventory 29,900.00 Prepaid Insurance 1,200.00 Total Current Assets 92,200.00 Property, Plant & Equipment Land 20,000.00 Buildings 150,000.00 Accumulated Dep - Buildings (54,000.00) 96,000.00 Equipment 77,800.00 Accumulated Dep - Equipment (34,900.00) 42,900.00 Total Property, Plant & Equipment 158,900.00 Other Assets Patents 8,100.00 Total Assets 259,200.00 Liabilities & Stockholders' Equity Liabilities Current Liabilities Accounts Payable 27,300.00 Salaries & Wages Payable 5,200.00 Unearned Rent Revenue 4,000.00 Notes Payable (due in 2016) 11,000.00 Interest Payable 3,690.00 Total Current Liabilities 51,190.00 Long Term Liabilities Notes Payable 30,000.00 Total Liabilities 81,190.00 Stockholders' Equity Common Stock 50,000.00 Retained Earnings 128,010.00 Total stockholders' Equity 178,010.00 Total Laibilities & Stockholders' Equity 259,200.00 -