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Cohen Fencing Company_adjusted Trial balance and Rochman Water Company_Financial statement




Question;Part 1: At December 31, 2012, Cohen Fencing Company had the following trial balance. Cohen Fencing CompanyUnadjusted Trial Balance12/31/12DrCrCash203,203Accounts Receivable60,000Allowance for Doubtful Accounts600Short Term Note Receivable24,000Interest ReceivablePrepaid Insurance11,000Supplies6,000Inventory65,000Equipment175,000Accumulated Depreciation75,000Copyright48,000Accounts Payable35,000Wages PayableInterest PayableBonds Payable200,000Premium on Bonds Payable11,103Common Stock90,000Retained Earnings5,000Dividends5,200Sales923900Sales Returns & Allowances4,000Sales Discounts9,000Cost of Goods Sold375,000Bad Debts ExpenseDepreciation ExpenseWages Expense260,000Rent Expense65,000Insurance Expense16,000Supplies Expense7,000Interest Revenue800Interest Expense9,000Gain on Sale of Equipment5,000Income Tax Expense4,000Total1,346,4031,346,403 Instructions: You must turn in the work performed on the sheets printed with this page. Your assignment will NOT BE ACCEPTED ON PLAIN PAPER. 1. Write the journal entries required for each of the 5 events described below on the General page provided. Use ONLY the accounts listed on the trial balance for your journal entries.2. Post the journal entry transactions to individual T-accounts and prepare an adjusted trial balance for The Cohen Fencing Company as of December 31, 2012.Information for the necessary adjustments or calculations as of December 31, 2012:1. The company last received interest on the note receivable on October 30, 2012. Interest will next be paid on April 30, 2013, when the note matures. Record the accrued interest revenue for the last 2 months of 2012. The annual interest rate is 6%. Round to nearest whole dollar.2. The Equipment was purchased prior to 2012. The company uses the straight-line method, assumed a $5,000 salvage value and an estimated useful life of 10 years. Record depreciation expense for the full year of 2012.3. The company uses the allowance method to estimate its uncollectible accounts. The new Chief Financial Officer (CFO) decided to use the percent of receivables method and estimated that 3% of Accounts Receivables at December 31, 2012, will be uncollectible. Record the adjusting entry for bad debt expense for 2012.4. The company issued 8%, 10-year bonds when the market rate for similar investments is 5%. The company pays interest each year on January 1st. Using the effective interest method of amortizing the premium on bonds payable, accrue the interest expense as of December 31, 2012. Round to nearest whole dollar for your interest expense calculation.5. Employees were last paid on December 24, 2012. Several employees worked through December 31st and wages due but not yet paid are $5,500. These wages will be paid in early January. An adjusting entry needs to be recorded to reflect this liability.Part 2: Using the trial balance below for Rochman Water Company (this is a different company and new problem), prepare a multi-step income statement and prepare the Statement of Retained Earnings and Classified Balance Sheet on the pages which follow. To get full credit you must include all critical subtotals (see class announcements).Rochman Water CompanyAdjusted Trial BalanceDecember 31, 2012DEBITCREDITCash2,517Accounts Receivable1,560Allowance for Uncollectible Accounts17Short term Note Receivable76Interest Receivable2Supplies35Inventory1,019Prepaid Expenses15Equipment8,725Accumulated Depreciation975Copyrights98Accounts Payable370Interest Payable2Unearned Revenue40Long Term Note Payable3,400Common Stock6,600Add?l Paid-in-Capital800Retained Earnings (1/1/12)2,000Dividends100Sales34,900Sales Returns & Allowances34 Sales Discounts65Cost of Goods Sold30,200 Bad debt expense34Depreciation Expense276Amortization Expense11Wages Expense2,000 Rent Expense500Office Expense79Supplies Expense100Selling Expense816Interest Expense100Interest Revenue8Income Tax Expense750Totals49,11249,112


Paper#37496 | Written in 18-Jul-2015

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