Ramel Corporation's unadjusted trial balance and accounting forms are given in the Working Papers.

Instructions:

13. Journalize the reversing entries using page 17 of a general journal.

Adjustment Information, December 31

Estimated uncollectible accounts based on aging accounts receivable         $ 11,020.00
Accrued interest income                                                          160.00
Merchandise inventory                                                        581,489.16 
Supplies inventory                                                               620.01
Value of prepaid insurance                                                     4,000.00
Annual depreciation expense-office equipment                                  10,960.00 
Annual depreciation expense-store equipment                                   10,120.00
Accrued interest expense                                                         625.00
Prepaid rent income earned                                                     6,000.00

Use Table discussed earlier to find the annual premium of each of the following life insurance policies:

$$\begin{array}{} \begin{array}{}\text{Sex} \end{array}& \begin{array}{}\text{Age} \end{array}& \begin{array}{}\text{Policy type}\end{array}& \begin{array}{}\text{Rate classification} \end{array}& \begin{array}{}\text{Face Value}\end{array}& \begin{array}{}\text{Annual premium}\end{array}&\\ \text{Male}&25&20-\text{year level term}&\text{T}&\$150,000 \end{array}$$

Presented below is information related to Gonzales Corporation the month of January 2020.

$$\begin{array}{lrrllrrr} \text{Cost of goods sold}&&\$208,000&\hspace{10pt}&\text{Salaries and wages expense}&&\$61,000\\ \text{Delivery expense}&&7,000&\hspace{10pt}&\text{Sales discounts}&&8,000\\ \text{Insurance expense}&&12,000&\hspace{10pt}&\text{Sales returns and allowances}&&13,000\\ \text{Rent expense}&&20,000&\hspace{10pt}&\text{Sales revenue}&&350,000\\ \end{array}$$

Prepare the necessary closing entries.

From the following Company S adjusted trial balance, prepare the following:

C. Balance Sheet (simple—unclassified)

$$\begin{array}{c} \textbf{Adjusted Trial Balance} \end{array}$$

$$\begin{array}{lcc} &\textbf{Debit}&\textbf{Credit}\\[5pt] \text{Cash}&\text{\$\hspace{5pt}55,200}\\ \text{Accounts Receivable}&\text{\hspace{10pt}30,200}\\ \text{Prepaid Insurance}&\text{\hspace{15pt}6,000}\\ \text{Land}&\text{\hspace{10pt}30,000}\\ \text{Accounts Payable}&&\text{\$\hspace{5pt}14,300}\\ \text{Salaries Payable}&&\text{\hspace{15pt}6,100}\\ \text{Common Stock}&&\text{\hspace{10pt}26,000}\\ \text{Retained Earnings}&&\text{\hspace{10pt}38,900}\\ \text{Dividends}&\text{\hspace{10pt}16,500}\\ \text{Service Revenue}&&\text{\hspace{5pt}211,850}\\ \text{Insurance Expense}&\text{\hspace{10pt}24,000}\\ \text{Salaries Expense}&\text{\hspace{5pt}128,350}\\ \text{Miscellaneous Expense}&\underline{\text{\hspace{15pt}6,900}}&\underline{\text{\hspace{39pt}}}\\ &\underline{\underline{\text{\$\hspace{1pt}297,150}}}&\underline{\underline{\text{\$\hspace{1pt}297,150}}}\\ \end{array}$$

The following accounts and balances were drawn from the records of Shearer Company at December 31, 2016:

$$\begin{array}{lrlr} \text{Cash}&\$22,100 & \text{Accounts receivable} & \$21,000\\ \text{Land}&\text{43,000} & \text{Cash flow from operating act.} & \text{8,600}\\ \text{Insurance expense}&\text{2,500} & \text{Beginning retained earnings} & \text{47,200}\\ \text{Dividends}&\text{5,000} & \text{Beginning common stock} & \text{5,500}\\ \text{Prepaid insurance}&\text{3,500} & \text{Service revenue} & \text{86,000}\\ \text{Accounts payable}&\text{15,000} & \text{Cash flow from financing act.} & \text{9,000}\\ \text{Supplies}&\text{2,100} & \text{Ending common stock} & \text{14,500}\\ \text{Supplies expense}&\text{1,000} & \text{Cash flow from investing act.} & \text{(6,000)}\\ \text{Rent expense}&\text{3,500} & \text{Other operating expenses} & \text{59,000}\\ \end{array}$$

Required

Use the accounts and balances from Shearer Company to construct an income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows (show only totals for each activity on the statement of cash flows).

Solve the problemx.

Three years ago Martha Spencer, owner of The Doll (a) House, lost control of her car while trying to find her cell phone and forced another driver (b) off the road. The court awarded $\$28,000$ to the driver of the other car and $\$8000$ to a passenger of the other car. Spencer had limits of $15 / 30$. (a) Find the amount the insurance company paid. (b) Find the amount Spencer had to pay.

$$\text{(a)}\qquad\underline{\qquad\qquad\qquad\qquad}$$

$$\text{(b)}\qquad\underline{\qquad\qquad\qquad\qquad}$$

From the following Company T adjusted trial balance, prepare the following:

D. Closing journal entries

$$\begin{array}{c} \textbf{Adjusted Trial Balance} \end{array}$$

$$\begin{array}{lcc} &\textbf{Debit}&\textbf{Credit}\\[5pt] \text{Cash}&\text{\$\hspace{5pt}24,000}\\ \text{Accounts Receivable}&\text{\hspace{10pt}14,900}\\ \text{Prepaid Insurance}&\text{\hspace{15pt}5,300}\\ \text{Land}&\text{\hspace{10pt}13,500}\\ \text{Accounts Payable}&&\text{\$\hspace{5pt}12,400}\\ \text{Salaries Payable}&&\text{\hspace{15pt}1,500}\\ \text{Common Stock}&&\text{\hspace{10pt}34,000}\\ \text{Retained Earnings}&&\text{\hspace{10pt}10,200}\\ \text{Dividends}&\text{\hspace{15pt}5,000}\\ \text{Service Revenue}&&\text{\hspace{10pt}56,300}\\ \text{Insurance Expense}&\text{\hspace{15pt}7,900}\\ \text{Salaries Expense}&\text{\hspace{10pt}39,000}\\ \text{Miscellaneous Expense}&\underline{\text{\hspace{15pt}4,800}}&\underline{\text{\hspace{39pt}}}\\ &\underline{\underline{\text{\$\hspace{1pt}114,400}}}&\underline{\underline{\text{\$\hspace{1pt}114,400}}}\\ \end{array}$$

The mishandling of a shipping container loaded with 750 cases of wine caused some of the bottles to break. An insurance adjuster proposed to settle the claim at $20.8 \%$ of the value of the shipment. based on a random 250-bottle sample in which 52 were cracked or broken. Calculate

(a) the relative standard deviation of the adjuster's evaluation.

(b) the absolute standard deviation for the 750 cases (12 bottles per case).

(c) the $90 \%$ confidence interval for the total number of bottles,

(d) the size of a random sampling needed for a relative standard deviation of $5.0 \%$, assuming a breakage rate of about $21 \%$.

Handy Hardware Corporation's unadjusted trial balance and accounting forms are given in the Working Papers.

Instructions:

1. Using the following information, journalize the adjusting entries for the current year ended December 31.

Adjustment Information, December 31

Estimated uncollectible accounts based on aging accounts receivable         $ 13,832.96 
Accrued interest income                                                          630.00
Merchandise inventory                                                        162,569.00 
Supplies inventory                                                             3,695.00 
Value of prepaid insurance                                                     8,360.00
Annual depreciation expense equipment                                         13,034.00
Accrued interest expense                                                         600.00 
Prepaid rent income earned                                                     4,000.00

Rene and Jefferson Franklin want to purchase a $560,000 home. They plan to make a 25% down payment and finance the remaining amount through Peabody Savings Association. Peabody has these closing costs: application fee,$325; credit report, $90; appraisal report,$555; title insurance, $490; survey and photographs,$325; recording fee, $65; legal fees,$780; and first 6 months of property taxes, $1,789. If the seller agreed to pay 50% of the closing costs, how much money will the Franklins need to secure the loan, including the down payment?

Finesse Co. buys and installs a machine on January 1, 2011, at a total cost of $92,750. Straight-line depreciation is taken each year for four years assuming a seven-year life and no salvage value. The machine is disposed of on July 1, 2015, during its fifth year of service. Prepare entries to record the partial year’s depreciation on July 1, 2015, and to record the disposal under the following separate assumptions: (1) the machine is sold for$35,000 cash and (2) Finesse receives an insurance settlement of $30,000 resulting from the total destruction of the machine in a fire.

Rapid Delivery, Inc. is considering the purchase of an additional delivery vehicle for $\$ 38,000$ on January $1$, $2010$. The truck is expected to have a five-year life with an expected residual value of $\$ 5,000$ at the end of five years. The expected additional revenues from the added delivery capacity are anticipated to be $\$ 60,000$ per year for each of the next five years. A driver will cost $\$ 43,000$ in $2010$ , with an expected annual salary increase of $\$ 2,000$ for each year thereafter. The insurance for the truck is estimated to cost $\$ 4,000$ per year.

Is the additional truck a good investment based on your analysis?

You are curious as to how much Rhonda and Steve made in their business last year. You do not have all the data, but you know that most of their expenses relate to buying the sweaters and having them monogrammed. You know they paid themselves $\$ 50,000$ each and you know the rent, utilities, insurance, and a benefit package for the business was about $\$ 20,000$. About how much do you think they made "before taxes" last year? If they must make their payment to the venture capital firm, and then pay $50$ percent in taxes, what was their increase in cash last year?

Assuming the following Adjusted Trial Balance, create the Post-Closing Trial Balance that would result, after all closing journal entries were made and posted:

$$\begin{array}{c} \textbf{Adjusted Trial Balance} \end{array}$$

$$\begin{array}{lcc} &\textbf{Debit}&\textbf{Credit}\\[5pt] \text{Cash}&\text{\$\hspace{5pt}22,900}\\ \text{Prepaid Insurance}&\text{\hspace{15pt}4,000}\\ \text{Fixed Assets}&\text{\hspace{10pt}44,000}\\ \text{Notes Payable}&&\text{\$\hspace{5pt}40,000}\\ \text{Common Stock}&&\text{\hspace{10pt}25,000}\\ \text{Retained Earnings}&&\text{\hspace{10pt}48,350}\\ \text{Dividends}&\text{\hspace{10pt}22,000}\\ \text{Sales Revenue}&&\text{\hspace{5pt}150,000}\\ \text{Automobile Expense}&\text{\hspace{10pt}26,500}\\ \text{Insurance Expense}&\text{\hspace{10pt}20,000}\\ \text{Salaries Expense}&\text{\hspace{5pt}122,500}\\ \text{Supplies Expense}&\underline{\text{\hspace{15pt}1,450}}&\underline{\text{\hspace{39pt}}}\\ &\underline{\underline{\text{\$\hspace{1pt}263,350}}}&\underline{\underline{\text{\$\hspace{1pt}263,350}}}\\ \end{array}$$