244.Mandalay Company, Inc. frequently has accrued expenses at the end of its fiscal year that should be recorded for proper financial statement presentation. Mandalay pays on a weekly basis and has $50,000 of accrued salaries incurred but not paid for June 30, its fiscal year-end. This consists of one day's accrued salaries for the week. The company will pay its employees $250,000 on July 4; the one day of accrued salaries and the remaining four days for July salaries. Record the following entries:
(a) Accrual of the salaries on June 30.
(b) Payment of the salaries on July 4, assuming that Mandalay does not prepare reversing entries.
(c) Assuming that Mandalay prepares reversing entries, reverse the adjusting entry made on June 30.
(d) Assuming that Mandalay prepares reversing entries, payment of the salaries on July 4.
245.Compute Darling Company's current ratio using the following information:
Accounts receivable$20,000Long-term notes payable$80,000
Salaries payable5,000Building170,000
Prepaid Rent7,000Accounts payable15,000
Cash12,000Land75,000
246.The unadjusted trial balance of Barber Housekeeping Service, Inc. is entered on the partial work sheet below.
Barber Housekeeping Service, Inc.
Work Sheet
For the year ended December 31
Account
Unadjusted Trial Balance
Adjustments
Adjusted Trial Balance
Income Statement
Balance Sheet
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Credit
Cash50,000
Accounts Receivable10,000
Supplies8,000
Automobiles160,000
Accum. Depr.—Autos.55,000
Accounts payable37,000
Salaries payable
Common stock1,000
Retained earnings54,000
Dividends45,000
Fees earned275,400
Salary expense125,000
Rent expense24,400
Advertising expense
Supplies expense
Depreciation expense
Totals422,400422,400
Required:
Complete the work sheet using the following information:
(a) Salaries earned by employees that are unpaid and unrecorded, $5,000.
(b) An inventory of supplies showed $3,000 of unused supplies still on hand.
(c) Depreciation on automobiles, $30,000.
(d) Advertising for November and December in the amount of $8,000 remains unpaid and unrecorded.