Skip to content
Course Work Minutes

Helping You With Your Course Work

  • Shop
  • Cart
  • Checkout
  • My Account
  • Contact Us
Awaiting product image

Dickinson Corporation-A partial trial balance of Dickinson Corporation is as follows on December 31, 2012.

$30.00

Category: Accounting Tags: 0, 1, account, accounting, aets, balance, books, chosen, closed, corporation, corporationa, cost, credit, debit, december, depreciable, depreciation, dickinson, explanation, follows, ignore, income, indented, january, life, manually, method, neceary, originally, partial, purchased, salvage, straightline, titles, trial, useful, value, years
  • Description
  • Reviews (0)

Description

A partial trial balance of Dickinson Corporation is as follows on December 31, 2012.

Dr.

Cr.

Supplies

$2,476

Salaries and Wages Payable

$1,921

Interest Receivable

5,342

Prepaid Insurance

88,670

Unearned Rent

0

Interest Payable

14,470

1.

A physical count of supplies on hand on December 31, 2012, totaled $1,118.

2.

Through oversight, the Salaries and Wages Payable account was not changed during 2012. Accrued salaries and wages on December 31, 2012, amounted to $4,508.

3.

The Interest Receivable account was also left unchanged during 2012. Accrued interest on investments amounts to $4,269 on December 31, 2012.

4.

The unexpired portions of the insurance policies totaled $64,880 as of December 31, 2012.

5.

$28,780 was received on January 1, 2012, for the rent of a building for both 2012 and 2013. The entire amount was credited to Rent Revenue.

6.

Depreciation for equipment for the year was erroneously recorded as $5,309 rather than the correct figure of $53,090.

7.

A further review of depreciation calculations of prior years revealed that depreciation of $7,081 was not recorded. It was decided that this oversight should be corrected by a prior period adjustment.

(a) Assuming that the books have not been closed, what are the adjusting entries necessary at December 31, 2012? (Ignore income tax considerations.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.

Account Titles and Explanation

Debit

Credit

1.

2.

3.

4.

5.

6.

7.

(b) Assuming that the books have been closed, what are the adjusting entries necessary at December 31, 2012? (Ignore income tax considerations.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.

Account Titles and Explanation

Debit

Credit

1.

2.

3.

4.

5.

6.

7.

On December 31, 2012, before the books were closed, the management and accountants of Madrasa Inc. made the following determinations about three depreciable assets.

1.

Depreciable asset A was purchased January 2, 2009. It originally cost $460,000 and, for depreciation purposes, the straight-line method was originally chosen. The asset was originally expected to be useful for 10 years and have a zero .justanswer.com/multiple-problems/8csjm-need-help-two-intermediate-accounting-questions.html#”>salvagevalue. In 2012, the decision was made to change the depreciation method from straight-line to sum-of-the-years’ digits, and the estimates relating to useful life and salvage value remained unchanged.

2.

Depreciable asset B was purchased January 3, 2008. It originally cost $244,500 and, for depreciation purposes, the straight-line method was chosen. The asset was originally expected to be useful for 15 years and have a zero salvage value. In 2012, the decision was made to shorten the total life of this asset to 9 years and to estimate the salvage value at $2,700.

3.

Depreciable asset C was purchased January 5, 2008. The asset’s original cost was $122,300, and this amount was entirely expensed in 2008. This particular asset has a 10-year useful life and no salvage value. The straight-line method was chosen for depreciation purposes.

Additional data:

1.

Income in 2012 before .justanswer.com/multiple-problems/8csjm-need-help-two-intermediate-accounting-questions.html#”>depreciationexpense amounted to $424,000.

2.

Depreciation expense on assets other than A, B, and C totaled $54,400 in 2012.

3.

Income in 2011 was reported at $409,000.

4.

Ignore all income tax effects.

5.

101,400 shares of common stock were outstanding in 2011 and 2012.

(a)

Prepare all necessary entries in 2012 to record these determinations. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.

Account Titles and Explanation

Debit

Credit

1.

2.

3.

(To correct equipment expensed.)

(To record depreciation.)

Reviews

There are no reviews yet.

Be the first to review “Dickinson Corporation-A partial trial balance of Dickinson Corporation is as follows on December 31, 2012.” Cancel reply

Your email address will not be published. Required fields are marked *

Related products

  • Placeholder
    Accounting

    Accounting Questions

     $13.00 Add to cart
  • Placeholder
    Accounting

    Acc 560!!!!!!!

     $1.00 Add to cart
  • Placeholder
    Accounting

    bus 320 connect homework 7

     $11.00 Add to cart
Copyright | Zita | Powered by Zita