Answer To: last week I paid for them to complete the trading securities on this project, this week my professor...
Vasudha answered on Apr 17 2021
Trial Balance
JKL, Inc.
Trial balances
Final Adj. Unadjusted Adjusted Nicolas Garza
12/31/2019 12/31/2020 Ref DR Ref CR 12/31/2020 Problems in Accounting
Cash 580,000 724,000
Investment in trading securities 64,000 64,000 1 19,000.00 83,000.00
Accounts receivable 138,000 35,000
Allowance for doubtful accounts (2,000) (2,000) 2 (380.00) (2,380.00)
Interest receivable - 0 - 0
Inventory 60,000 40,000
Current portion of notes receivable - 0 - 0
Prepaid expenses 4,000 3,000
Allowance for change in fair value of securities - 0 - 0
Term portion of note receivable - 0 - 0
Investment in DFE Corp. - 0 - 0
Machine A 72,000 72,000
Machine B 68,000 68,000
Building 676,000 676,000
Other depreciable assets 992,000 992,000
Machine D 92,000 92,000
Outdoor rigging 288,000 288,000
Electronic Equipment E (related to outdoor rigging venture) 92,000 92,000
Accumulated depreciation (1,300,000) (1,300,000) 3 3 (34,911.00) (1,334,911.00)
Patent - 0 - 0
Goodwill -- DFE Corp. 128,000 128,000
Accounts payable (1,020,000) (320,000)
Taxes payable (36,000) (36,000)
Accrued expenses (4,000) (32,000)
Preferred dividends payable - 0 - 0
Pension liability - 0 - 0
Bonds payable, 6%, due 2034 (360,000) (360,000)
suspense - 0 1,084,000
Preferred non-cumulative, 6%, $500 par, 3616 shares outstanding (1,808,000) (1,808,000)
Common stock, $10 par, 9,000 shares outstanding (360,000) (360,000)
Paid in capital in excess of par, common (272,000) (272,000)
Accumulated other comprehensive income - 0 - 0
- 0 - 0
Treasury stock - 0 - 0
Retained earnings 1,908,000 1,908,000
Sales - 0 (5,428,000)
Cost of goods sold - 0 3,170,000
Selling, general and administrative expense - 0 482,000
Interest income - 0 - 0
Interest expense - 0 - 0
Depreciation expense - 0 - 0
Federal income tax expense - 0 - 0
Tax expense or benefit re: discontnued sale - 0 - 0
Tax expense or benefit re: discontnued operation - 0 - 0
Results from discontinued operations--disposition - 0 - 0
Results from discontinued operations--operation - 0 - 0
Extraordinary gains or losses - 0 - 0
- 0 - 0
Balances at 12/31/18 are needed for the cash flow worksheet.
Balances at 12/31/19 are the ending balances for 2019 before your adjustments.
Get your trial balance worksheet 2018 beginning balances from the 2018 column above.
You can add accounts as needed.
Journal Entries
Put a copy of all your journal entries for 2020 here on this tab.
You are not making ANY prior year entries. Any prior year information is just that--information.
No. Events Journal Entry Account Debit Credit
1 Trading securities Investment in trading securities 19,000.00
Unrealized gains (losses) on trading securities 19,000.00
To mark trading securities to market (83,000-64,000)
2 Bad Debts Bad Debts Expense Account 380
Allownaces for Doubtfull acounts 380
to record estimated bad debts as per the balance sheet method.
( Ending balance $2,380 - 2,000 = 380 )
3 Depreciation Depreciation Expenses 34,911
Accumalated Depreciation 34,911
Machine - A - 14,040
Machine - B - 100
Building - 20,771
Depreciation charged for 2020. For Machine B , there is a increase in the value of asset, depreciation is adjusted accordingly. ( deprecition for 3 yrs 2,100 charged - actuals 2,000)
4 Leases Capital Lease
(a) Capital Lease Obligation 168,000
Building 168,000
This is Capital lease obligation for 4 years, with the monthly rental of $3,500 , calculated for 4 years. ( $3,500 * 48 months = $168,00)
Building Rent Received 42,000
Capital Lease...