blakopulence
Oct 16, 2009, 06:54 PM
Enter amounts indicating whether it is an addition (+) or a subtraction (-).
Trans./Adj. Crt. Asset Current Liability Long T. Deb Net Income
A. Wages of $768 accrued at the end of the prior fiscal period were paid this fiscal period.
B. Real estate taxes of $2,400 applicable to the current period have not been accrued.
C. Interest on bonds payable has not been accrued for the current month. The company has outstanding $360,000 of 7.5% bonds.
D. The premium related to the bonds in part c has not been amortized for the current month. The current month amortization is $70.
E. Based on past experience with its warranty program, it is estimated that warranty expense for the current period should be 0.2% of sales of $918,000.
F. Analysis of the company’s income taxes indicates that taxes currently payable are $76,000 and that the deferred tax liability should be increased by $21,000.
Trans./Adj. Crt. Asset Current Liability Long T. Deb Net Income
A. Wages of $768 accrued at the end of the prior fiscal period were paid this fiscal period.
B. Real estate taxes of $2,400 applicable to the current period have not been accrued.
C. Interest on bonds payable has not been accrued for the current month. The company has outstanding $360,000 of 7.5% bonds.
D. The premium related to the bonds in part c has not been amortized for the current month. The current month amortization is $70.
E. Based on past experience with its warranty program, it is estimated that warranty expense for the current period should be 0.2% of sales of $918,000.
F. Analysis of the company’s income taxes indicates that taxes currently payable are $76,000 and that the deferred tax liability should be increased by $21,000.