ACCT 495 Contemporary Issues in Accounting Practice Homework: Adjusting Entries & Statements- University of Maryland Global Campus
12/31/2019 Year-End Adjustment Data For Bruce And Emmett Corp Is As Follows:
i. $300,000 in sales on account had not been recorded but were shipped FOB Shipping Point on December 31. The cost of this inventory was $140,000. Bruce and Emmett use a perpetual inventory system.
ii. Employees are allowed to carry over up to 10 days of earned vacation days per year up to 40 days. Employees earn an average of $150 per day. A total of 500 earned vacation days will be carried over to 2020. It is probable that the employees will take the vacation days.
iii. Accrued wages at December 31, 2019 amount to $50,000.
iv. You discover that a product sale was made and recorded in December for $50,000; the product had not yet been shipped. The cost of the product was $24,000.
v. The Prepaid Expense account balance includes the $24,000 cost of a two year insurance policy purchased on April 1, 2019. (Prepaid Expense was debited for $24,000 on April 1, 2019)
vi. Depreciation & Amortization expense for the year is $150,000
vii. Interest expense accrued on its long-term liabilities is $35,000.
viii. A dividend of $40,000 was declared on December 16, to be paid on January 15, 2020
ix. It is estimated that 5% of accounts receivable will be uncollectable.
x. Income tax expense is 30% of income before income tax.
INSTRUCTIONS:
1) Record the adjusting journal entries
2) Compute the adjusted trial balance amounts
3) Prepare in good form:
i. Multiple Step Income Statement with an other gains and losses section
ii. Balance Sheet
iii. Retained Earnings Statement
4) Compute the following ratios: Current Ratio, Profit Margin on Sales, Debt to Assets, Earnings per Share, and Book Value per share.
5) Record Closing Entries.
Format your homework according to the following formatting requirements:
(1) The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
(2) The response also includes a cover page containing the title of the homework, the student's name, the course title, and the date. The cover page is not included in the required page length.
(3) Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.
Attachment:- Project-Trial-Balance.rar