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

Discussion in 'Accounting' started by yumYum, Mar 3, 2013.

  1. yumYum

    yumYum Guest

    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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    yumYum, Mar 3, 2013
    #1
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  2. 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
     
    paulthomascpa, Mar 5, 2013
    #2
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