Half 1: At December 31, 2012, Cohen Fencing Firm had the next trial stability. Cohen Fencing CompanyUnadjusted Trial Steadiness12/31/12DrCrCash203,203Accounts Receivable60,000Allowance for Uncertain Accounts600Quick Time period Notice Receivable24,000Curiosity ReceivablePrepaid Insurance coverage11,000Supplies6,000Stock65,000Tools175,000Gathered Depreciation75,000Copyright48,000Accounts Payable35,000Wages PayableInterest PayableBonds Payable200,000Premium on Bonds Payable11,103Widespread Inventory90,000Retained Earnings5,000Dividends5,200Gross sales923900Gross sales Returns & Allowances4,000Gross sales Discounts9,000Value of Items Bought375,000Dangerous Money owed ExpenseDepreciation ExpenseWages Expense260,000Lease Expense65,000Insurance coverage Expense16,000Provides Expense7,000Curiosity Income800Curiosity Expense9,000Acquire on Sale of Equipment5,000Earnings Tax Expense4,000Total1,346,4031,346,403 Directions: You have to flip within the work carried out on the sheets printed with this web page. Your task will NOT BE ACCEPTED ON PLAIN PAPER. 1. Write the journal entries required for every of the 5 occasions described under on the Common web page offered. Use ONLY the accounts listed on the trial stability in your journal entries.2. Put up the journal entry transactions to particular person T-accounts and put together an adjusted trial stability for The Cohen Fencing Firm as of December 31, 2012.Data for the required changes or calculations as of December 31, 2012:1. The corporate final obtained curiosity on the observe receivable on October 30, 2012. Curiosity will subsequent be paid on April 30, 2013, when the observe matures. File the accrued curiosity income for the final 2 months of 2012. The annual rate of interest is 6%. Spherical to nearest entire greenback.2. The Tools was bought previous to 2012. The corporate makes use of the straight-line technique, assumed a $5,000 salvage worth and an estimated helpful lifetime of 10 years. File depreciation expense for the complete 12 months of 2012.three. The corporate makes use of the allowance technique to estimate its uncollectible accounts. The brand new Chief Monetary Officer (CFO) determined to make use of the % of receivables technique and estimated that three% of Accounts Receivables at December 31, 2012, will probably be uncollectible. File the adjusting entry for unhealthy debt expense for 2012.four. The corporate issued eight%, 10-year bonds when the market fee for related investments is 5%. The corporate pays curiosity every year on January 1st. Utilizing the efficient curiosity technique of amortizing the premium on bonds payable, accrue the curiosity expense as of December 31, 2012. Spherical to nearest entire greenback in your curiosity expense calculation.5. Staff have been final paid on December 24, 2012. A number of workers labored by means of December 31st and wages due however not but paid are $5,500. These wages will probably be paid in early January. An adjusting entry must be recorded to mirror this legal responsibility.Half 2: Utilizing the trial stability under for Rochman Water Firm (this can be a totally different firm and new downside), put together a multi-step revenue assertion and put together the Assertion of Retained Earnings and Categorised Steadiness Sheet on the pages which observe. To get full credit score you need to embrace all important subtotals (see class bulletins).Rochman Water CompanyAdjusted Trial BalanceDecember 31, 2012DEBITCREDITCash2,517Accounts Receivable1,560Allowance for Uncollectible Accounts17Quick time period Notice Receivable76Curiosity Receivable2Supplies35Inventory1,019Pay as you go Bills15Equipment8,725Gathered Depreciation975Copyrights98Accounts Payable370Curiosity Payable2Unearned Income40Lengthy Time period Notice Payable3,400Widespread Stock6,600Addâl Paid-in-Capital800Retained Earnings (1/1/12)2,000Dividends100Gross sales34,900Gross sales Returns & Allowances34 Gross sales Reductions65Value of Items Bought30,200 Dangerous debt expense34Depreciation Expense276Amortization Expense11Wages Expense2,000 Lease Expense500Workplace Expense79Provides Expense100Promoting Expense816Curiosity Expense100Curiosity Revenue8Income Tax Expense750Totals49,11249,112
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