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Boat repair questions and answers

02/10/2021 Client: muhammad11 Deadline: 2 Day

Question 14

Johnson’s boat Yard, Inc, repairs, store, and cleans boats for customers. It is completing the accounting process for the year just ended on November 30. The transaction for the past year have been journalized and posted. The following data will respect to adjusting entries at year-end are available.

Johnson’s winterized (clean and covered) three boats for customers at the end of November but did not record the service for $3,300.
On Oct 1, Johnson’s paid $2,200 to the local newspaper for an advertisement to run every Thursday for 12 weeks. All ads have ben run except for three. Thursdays in December to complete the 12-week contract.
Johnson’s borrowed $300,000 at an 11 percent annual interest rate on April 1 of the current year to expand its boast storage facility. The loan requires Johnson’s to pay the interest quarterly until the note is repaid in three year. Johnson’s paid quarterly interest on July 1 and October 1.
The Sanjeev family paid Johnson $4,500 on November 1 to store its sailboat for the winter until May 1 of the next fiscal Johnson’s credited the full mount to Unearned Storage Revenue on November 1.
Johnson’s used boat-lifting equipment that cost $180,000; $18,000 was the estimated depreciation for the current year.
Boat repair supplies on hand at the beginning of the current year totaled $18,900. Repair supplies purchased and debited to Supplies during the year amounted to $45,200. The year-end count show $15,600 of the supplies on hand.
Wages of $5,600 earned by employees during November were unpaid and unrecorded at November 30, the next payroll date will be December 5 of the next fiscal years.
Required

For each of the transaction above indicate the amount and the direction of effects of the adjusting entry on the elements of the balance sheet and income statement.

(Enter negative amount with a minus sign)

Balance sheet Income Statement

Transaction Assets Liabilities Stockholders Revenues Expenses Net Income

Equity

a.

b.

c.

d.

e.

f.

g.

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