Journalize the following entries :1. It was determined that a shipment on Dec 30...

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Accounting

Journalize the following entries :
1. It was determined that a shipment on Dec 30 from Brodie toDawson Corp was not recorded. Dawson purchased from Brodie 100,000lbs of biscuits for sales price of $4.00 per LB. Cost of thisproduct was $1.50 per LB. Terms were FOB Shipping Point. Paymentterms Net 30. The Company also billed the required 7% sales taxwhich was added to the receivable from Dawson.
2. Per review of Brodie's AR Aging by the finance team using theAging of Receivables Method, it was determined that 10% of theending Accounts Receivable Balance of $4,500,000 need to bereserved for in the Allowance for Doubtful Accounts (i.e. theending balance). Record the adjustment keeping in mind theAllowance for Doubtful Accounts has a $120,000 balance before thisadjustment
3. Brodie needs to record Warranty Expense for 2018.It offers an up to 2 year freshness and taste warranty, and expectsthat 3% of the ending net Revenue of $16,000,000 for 2018 willultimately have warranty claims to be resolved for customers
4. On Jul 1, Brodie issued $4,000,000 of 6%Bonds Payable at 95, with semi-annual interest due next on Jan 1.Bonds have two year maturity and mature on Jul 1, 2020. Accrue theInterest Expense and related liability as of Dec 31, 2018 for theinterest due on Jan 1, 2019
5. The Bond Issuance on Jul 1, 2018, had a discount that needsto be amortized over its two year term as additional interestexpense. Use the straight-line method to amortize the Bond Discount(thus increasing the Bonds Payable carrying value)
6.The Company needs to accrue its final Payroll of the year Dec16-31, 2018, which will be paid on Jan 5, 2019. Total Salary andWage accrual for the period is $200,000, and the payroll taxaccrual for Company payroll tax expense is an extra 9% of the$200,000. Record in the separate accounts
7.Based upon the banner year's financial results for 2018,Management asked the Board of Directors for a bonus pool to pay itsmanagement & employees of $350,000. After discussion, the Boardapproved an even bigger bonus pool of $400,000, allowing managementdiscretion in the allocation among the differing employees. Recordthis accrual
8.A physical inventory of the equipment performed on the lastday of the year uncovered that a 10 year old piece of equipment wasdisposed of earlier in the year and dropped off at the dump. TheEquipment has a cost of $60,000, and it was fully depreciated.Remove this asset and its related Accumulated Depreciation from thebooks

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1 Dawson Corp Ac100000lbs400lb tax 7 Dr 428000 To Merchant Inventory 100000lbs 15lb Cr150000 To Sales Revenue 100000lbs 25lb Cr 250000 To Tax Payable 4000007 Cr 28000 Being the shipment made on Dec 30th not recorded Entry posted to recognize the revenue on shipment 2 on 31st Dec 2019 Bad Debts Ac Dr 330000 To Allowance for Doubtful Debts Ac 330000 Being 10 See Answer

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Transcribed Image Text

In: AccountingJournalize the following entries :1. It was determined that a shipment on Dec 30 from...Journalize the following entries :1. It was determined that a shipment on Dec 30 from Brodie toDawson Corp was not recorded. Dawson purchased from Brodie 100,000lbs of biscuits for sales price of $4.00 per LB. Cost of thisproduct was $1.50 per LB. Terms were FOB Shipping Point. Paymentterms Net 30. The Company also billed the required 7% sales taxwhich was added to the receivable from Dawson.2. Per review of Brodie's AR Aging by the finance team using theAging of Receivables Method, it was determined that 10% of theending Accounts Receivable Balance of $4,500,000 need to bereserved for in the Allowance for Doubtful Accounts (i.e. theending balance). Record the adjustment keeping in mind theAllowance for Doubtful Accounts has a $120,000 balance before thisadjustment3. Brodie needs to record Warranty Expense for 2018.It offers an up to 2 year freshness and taste warranty, and expectsthat 3% of the ending net Revenue of $16,000,000 for 2018 willultimately have warranty claims to be resolved for customers4. On Jul 1, Brodie issued $4,000,000 of 6%Bonds Payable at 95, with semi-annual interest due next on Jan 1.Bonds have two year maturity and mature on Jul 1, 2020. Accrue theInterest Expense and related liability as of Dec 31, 2018 for theinterest due on Jan 1, 20195. The Bond Issuance on Jul 1, 2018, had a discount that needsto be amortized over its two year term as additional interestexpense. Use the straight-line method to amortize the Bond Discount(thus increasing the Bonds Payable carrying value)6.The Company needs to accrue its final Payroll of the year Dec16-31, 2018, which will be paid on Jan 5, 2019. Total Salary andWage accrual for the period is $200,000, and the payroll taxaccrual for Company payroll tax expense is an extra 9% of the$200,000. Record in the separate accounts7.Based upon the banner year's financial results for 2018,Management asked the Board of Directors for a bonus pool to pay itsmanagement & employees of $350,000. After discussion, the Boardapproved an even bigger bonus pool of $400,000, allowing managementdiscretion in the allocation among the differing employees. Recordthis accrual8.A physical inventory of the equipment performed on the lastday of the year uncovered that a 10 year old piece of equipment wasdisposed of earlier in the year and dropped off at the dump. TheEquipment has a cost of $60,000, and it was fully depreciated.Remove this asset and its related Accumulated Depreciation from thebooks