- short term cash
- improving customer service
- billing accounts payable
Bamboo Inc. operates with a December 31 year-end and prepares adjusting entries annually. During 2012, the following selected transactions occurred:
i February 1: Received $8000 cash deposit for a customer for work to be performed later in this year and next year.
ii) October 1: Received a five-year, 5% loan for $50,000. Interest and principal are to be paid at maturity.
iii) November 1: Purchased equipment on account for $25,000 plus HST (harmonized sales tax) of 15%.
iv) November 18: Recorded sales on account of $100,000 plus HST of 15%.
v)December 15: The company is being sued by a customer for $500,000. The company’s legal counsel believes there will likely be an unfavourable verdict but cannot make a reasonable estimate of the probable loss.
vi) December 20: Remitted (paid) the HST owing to Canada Revenue Agency from the transactions above.
vii) December 31: An analysis of the deposit from the customer received on Feb 1 (i) indicates that $2000 of work has now been completed for the customer.
Required: (Show all calculations.)
a)Record all journal entries necessary to report the above transactions. If no entry is needed, state why.
b) Record all necessary adjusting entries as of December 31, 2012.
c) Show the Classified Liabilities section of Bamboo Inc.’s Balance Sheet at December 31, 2012 relating to the transactions above.
I know this is a lot, but if there is a way to give you more than 10 points, let me know and I will! :)
i February 1: Received $8000 cash deposit for a customer for work to be performed later in this year and next year.
ii) October 1: Received a five-year, 5% loan for $50,000. Interest and principal are to be paid at maturity.
iii) November 1: Purchased equipment on account for $25,000 plus HST (harmonized sales tax) of 15%.
iv) November 18: Recorded sales on account of $100,000 plus HST of 15%.
v)December 15: The company is being sued by a customer for $500,000. The company’s legal counsel believes there will likely be an unfavourable verdict but cannot make a reasonable estimate of the probable loss.
vi) December 20: Remitted (paid) the HST owing to Canada Revenue Agency from the transactions above.
vii) December 31: An analysis of the deposit from the customer received on Feb 1 (i) indicates that $2000 of work has now been completed for the customer.
Required: (Show all calculations.)
a)Record all journal entries necessary to report the above transactions. If no entry is needed, state why.
b) Record all necessary adjusting entries as of December 31, 2012.
c) Show the Classified Liabilities section of Bamboo Inc.’s Balance Sheet at December 31, 2012 relating to the transactions above.
I know this is a lot, but if there is a way to give you more than 10 points, let me know and I will! :)
Accounting- Liabilities- Journal Entries! 10 pts best answer?
没有评论:
发表评论