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I have a big project due in a couple weeks and need some help on
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I have a big project due in a couple weeks and need some help on the journal entries.  I have preliminary answers down for all of them but I'd like some help to make sure I'm doing everything correctly.  This is just the first part of a much bigger project so if any of these entries are wrong my entire project will be wrong.  I have included the chart of accounts in an Excel sheet.  


It is December 31, 20xx and we are to make these adjusting entries:


1.    $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.  Roxy and Harley uses a perpetual inventory system.

2.    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 $190 per day.  A total of 1,000 earned vacation days will be carried over to 2017. It is probable that the employees will take the vacation days.

3.    Income tax expense is 30% of income before income tax.

4.    The Research and Development account includes current year costs of $380,000 and R& D Equipment with a cost of $200,000 and an estimated useful life of 10 years.

5.    You discover that a product sale was made and recorded in December for $100,000; the product had not yet been shipped. The cost of the product was $58,000.

6.    The Prepaid Expense account balance includes the $300,000 cost of a two year insurance policy purchased on April 1, 2016.

7.    Depreciation & Amortization expense for the year is $275,000

8.    Interest expense accrued on its long-term liabilities is $82,620.

9.    A dividend of $147,000 was declared on December 16, to be paid on January 15, 2017

10.    It is estimated that 6% of accounts receivable will be uncollectable.



Roxy & Harley Corporation

 

Unadjusted Balances in Order

 

Account Number

 

12/31/2016

 

Debit

 

100

 

Cash

 

$

 

850,000

 

101

 

Cash Equivalents

 

$

 

76,000

 

102

 

Investments

 

$ 1,351,735

 

103

 

Accounts Receivable

 

$ 1,650,000

 

104

 

Allowance for Doubtful Accounts

 

105

 

Inventory

 

$ 2,750,000

 

106

 

Insurance

 

$

 

170,000

 

107

 

Other Current Assets

 

$

 

51,063

 

108

 

Equipment

 

$

 

974,000

 

109

 

Building

 

$ 1,750,000

 

110

 

Land

 

$

 

620,000

 

111

 

Accumulated Depreciation

 

112

 

Goodwill

 

$

 

350,000

 

113

 

Research and Development

 

$

 

580,000

 

114

 

Other Intangible Assets

 

$

 

500,000

 

200

 

Accounts Payable

 

201

 

Wages Payable

 

202

 

Payroll Taxes Payable

 

203

 

Income Tax Payable

 

204

 

Interest Payable

 

205

 

Dividends Payable

 

206

 

Unearned Revenue

 

207

 

Long Term Liabilities

 

300

 

Common Stock

 

301

 

Treasury Stock

 

$

 

500,000

 

302

 

Paid-in Capital Common Stock

 

303

 

Retained Earnings

 

400

 

Product Sales Revenue

 

401

 

Service Revenue

 

402

 

Investment Income

 

403

 

Dividends

 

$

 

100,000

 

404

 

Sales Discounts

 

$

 

539,000

 

405

 

Sales Returns

 

$

 

325,000

 

500

 

Cost of Goods Sold

 

$ 10,200,000

 

600

 

Accounting Consultants

 

$

 

200,000

 

601

 

Advertising Expense

 

$

 

337,000

 

602

 

Bad Debts Expense

 

603

 

Depreciation Expense

 

604

 

Dues and Subscriptions

 

$

 

45,920

 

605

 

Equipment Expense

 

$

 

300,000

 

606

 

Income Tax Expense

 

607

 

Interest Expense

 

$

 

95,000

 

608

 

Legal Fees

 

$

 

410,000

 

609

 

Maintenance Expense

 

$

 

85,000 Credit $ 50,000 $ 915,000 $ 2,289,850

 

$

 

160,000

 

$

 

36,000

 

$

 

25,100

 

$

 

100,000

 

$

 

375,000

 

$ 1,377,000

 

$ 1,470,000

 

$

 

315,000

 

$

 

739,400

 

$ 18,561,346

 

$ 3,085,356

 

$

 

56,580 610

 

611

 

612

 

613

 

614

 

615

 

616

 

617

 

618

 

619

 

700 Miscellaneous Expense

 

Office Expense

 

Office Wages

 

Payroll Tax Expense

 

Prepaid Expense

 

Property Tax Expense

 

Telephone Expense

 

Travel & Entertainment

 

Utilities Expense

 

Wages-Employees Expense

 

Gain/Loss on Disposal $

 

157,693

 

$

 

430,000

 

$

 

800,000

 

$

 

336,975

 

$

 

245,186

 

$

 

215,662

 

$

 

40,398

 

$

 

440,000

 

$

 

156,000

 

$ 1,924,000 $ 29,555,632 $ 29,555,632

 







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