Account balances taken from the ledger of Middler Company on December 31,2013,are as follows:

Adjustments on December 31,2013,are required as follows:
(a)The inventory on hand is $135,915.
(b)The allowance for doubtful accounts is to be increased to a balance of $6,250.
(c)Buildings are depreciated at the rate of 5 percent per year.
(d)Accrued selling expenses are $6,075.
(e)There are supplies of $1,050 on hand.
(f)Prepaid insurance at December 31,2013,totals $1,290.
(g)Accrued interest on long-term investments is $360.
(h)Accrued real estate and payroll taxes are $1,170.
(i)Accrued interest on the mortgage is $240.
(j)Income tax is estimated to be 30 percent of the income before income tax (round to nearest dollar).
(1)Prepare an eight-column work sheet.
(2)Prepare adjusting and closing entries.

Question

Account balances taken from the ledger of Middler Company on December 31,2013,are as follows:
  
Adjustments on December 31,2013,are required as follows:
(a)The inventory on hand is $135,915.
(b)The allowance for doubtful accounts is to be increased to a balance of $6,250.
(c)Buildings are depreciated at the rate of 5 percent per year.
(d)Accrued selling expenses are $6,075.
(e)There are supplies of $1,050 on hand.
(f)Prepaid insurance at December 31,2013,totals $1,290.
(g)Accrued interest on long-term investments is $360.
(h)Accrued real estate and payroll taxes are $1,170.
(i)Accrued interest on the mortgage is $240.
(j)Income tax is estimated to be 30 percent of the income before income tax (round to nearest dollar).
(1)Prepare an eight-column work sheet.
(2)Prepare adjusting and closing entries.

Quizplus · Accepted Answer

The Answer of Account balances taken from the ledger of Middler Company on December 31,2013,are as follows:
  
Adjustments on December 31,2013,are required as follows:
(a)The inventory on hand is $135,915.
(b)The allowance for doubtful accounts is to be increased to a balance of $6,250.
(c)Buildings are depreciated at the rate of 5 percent per year.
(d)Accrued selling expenses are $6,075.
(e)There are supplies of $1,050 on hand.
(f)Prepaid insurance at December 31,2013,totals $1,290.
(g)Accrued interest on long-term investments is $360.
(h)Accrued real estate and payroll taxes are $1,170.
(i)Accrued interest on the mortgage is $240.
(j)Income tax is estimated to be 30 percent of the income before income tax (round to nearest dollar).
(1)Prepare an eight-column work sheet.
(2)Prepare adjusting and closing entries.

Account Balances Taken from the Ledger of Middler Company on December