Can anyone help me? I don't know if I have to put an adjustment entry for this.


Y

yumYum

These are all the adjustments needed:

Additional Information:
a. Merchandise inventory, Dec.31 - 200,000
b. Inventory of office supplies as of Dec. 31 - 2000
c. Accrued Salaries as of Dec. 31 - 9000
d. Depreciation of Equipment - 10% per year
e. Expired insurance - 10,000
f. Income tax is 35% of income before tax
g. Transactions with shareholders during the year as as follows:
- Issued 1000 shares of ordinary shares of 25 per share
- Declared and distributed dividends of 80,000 during the year.


What I'm asking is this:

I already made adjustments from A to F but how about letter G? Do I have to
make one for it? Thanks. :) I accept a yes or no for an answer.

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P

paulthomascpa

yumYum said:
These are all the adjustments needed:

Additional Information:
a. Merchandise inventory, Dec.31 - 200,000
b. Inventory of office supplies as of Dec. 31 - 2000
c. Accrued Salaries as of Dec. 31 - 9000
d. Depreciation of Equipment - 10% per year
e. Expired insurance - 10,000
f. Income tax is 35% of income before tax
g. Transactions with shareholders during the year as as follows:
- Issued 1000 shares of ordinary shares of 25 per share
- Declared and distributed dividends of 80,000 during the year.


What I'm asking is this:
I already made adjustments from A to F but how about letter G? Do I have
to
make one for it? Thanks. :) I accept a yes or no for an answer.

Yes: If you got $25,000 for the issuance of the stock it needs to be
properly recorded.

If you paid out $80,000 in dividends, it needs to be properly recorded
 

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