TREVOR CORPORATION Balance Sheet December 31, 2013 Cash $ 30,000 Accounts payable $ 13,750 Inventory 30,750 Interest payable 2,500 Prepaid insurance

TREVOR CORPORATION

Balance Sheet

December 31, 2013

Cash

$  30,000

Accounts payable

$  13,750

Inventory

30,750

Interest payable

2,500

Prepaid insurance

5,600

Bonds payable

50,000

Equipment

38,000

Common stock

25,000

$104,350

Retained earnings

13,100

$104,350

During 2014, the following transactions occurred.

1.

Trevor paid $2,500 interest on the bonds on January 1, 2014.

2.

Trevor purchased $241,100 of inventory on account.

3.

Trevor sold for $480,000 cash inventory which cost $265,000. Trevor also collected $28,800 sales taxes.

4.

Trevor paid $230,000 on accounts payable.

5.

Trevor paid $2,500 interest on the bonds on July 1, 2014.

6.

The prepaid insurance ($5,600) expired on July 31.

7.

On August 1, Trevor paid $10,200 for insurance coverage from August 1, 2014, through July 31, 2015.

8.

Trevor paid $17,000 sales taxes to the state.

9.

Paid other operating expenses, $91,000.

10.

Redeemed the bonds on December 31, 2014, by paying $48,000 plus $2,500 interest.

11.

Issued $90,000 of 8% bonds on December 31, 2014, at 103. The bonds pay interest every June 30 and December 31.

Adjustment data:

1.

Recorded the insurance expired from item 7.

2.

The equipment was acquired on December 31, 2013, and will be depreciated on a straight-line basis over 5 years with a $3,000 salvage value.

3.

The income tax rate is 30%. (Hint: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount.)

Instructions

(You may want to set up T-accounts to determine ending balances.)

1.

Prepare journal entries for the transactions listed above and adjusting entries.

2.

Prepare an adjusted trial balance at December 31, 2014.

Totals

$687,695







Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10