{"id":35369,"date":"2023-12-27T22:16:58","date_gmt":"2023-12-27T22:16:58","guid":{"rendered":"https:\/\/www.goodacademic.com\/blog\/questions\/recording-business-transactions-according-to-us-gaap-consider-a-hypothetical-firm-with-unadjusted-trial-balance-at-december-31as-shown-below\/"},"modified":"2023-12-27T22:16:58","modified_gmt":"2023-12-27T22:16:58","slug":"recording-business-transactions-according-to-us-gaap-consider-a-hypothetical-firm-with-unadjusted-trial-balance-at-december-31as-shown-below","status":"publish","type":"questions","link":"https:\/\/www.goodacademic.com\/blog\/questions\/recording-business-transactions-according-to-us-gaap-consider-a-hypothetical-firm-with-unadjusted-trial-balance-at-december-31as-shown-below\/","title":{"rendered":"Recording Business Transactions according to US GAAP. Consider a hypothetical firm with unadjusted trial balance at December 31as shown below:"},"content":{"rendered":"<p>&nbsp;<\/p>\n<p>Unadjusted trial balance Feb 28<\/p>\n<p>Cash= 20700<\/p>\n<p>Accounts receivable =3000<\/p>\n<p>Land =20000<\/p>\n<p>Building= 40000<\/p>\n<p>Furniture= 6000<\/p>\n<p>Computer = 2400<\/p>\n<p>Note payable = 55000<\/p>\n<p>Accounts payable = 5000<\/p>\n<p>Cap stock = 30000<\/p>\n<p>Revenue = 4600<\/p>\n<p>Electricity expense= 500<\/p>\n<p>Salary expense= 2000<\/p>\n<p><strong>TOTAL<\/strong><\/p>\n<p><strong>94600<\/strong><\/p>\n<p><strong>94600<\/strong><\/p>\n<p>At December 31, the company has to record the following transactions<\/p>\n<p>Revenues obtained during the las 10 months: $250,000.00 all paid in cash<\/p>\n<p>All expenses of the company during the last 10 months for $58,000<\/p>\n<p>The $55,000 note payable has been issued on January 1 and&nbsp; bears 10% interest rate. Interests are paid every 1st of January. No repayment of the principal has been made<\/p>\n<p>The building has a useful life of 30 years, an estimated salvage value of $5,000<\/p>\n<p><u>Students are requested to:<\/u><\/p>\n<ol>\n<li><u>Prepare the last entries of the year on the journal (revenues and expenses, adjusting entries)<\/u><\/li>\n<li><u>Prepare the closing entries.<\/u><\/li>\n<li><u>The balance sheet of the company closed at December 31.<\/u><\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<p><strong>Formalities:<\/strong><\/p>\n<ul>\n<li>Format: An Excel document<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>This task assesses the following learning outcomes:<\/p>\n<ul>\n<li>Recording business transactions according to US GAAP<\/li>\n<li>Assessing the Journal.<\/li>\n<li>Assessing the Balance sheet.<\/li>\n<li>Assessing the firm\u2019s result.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; Unadjusted trial balance Feb 28 Cash= 20700 Accounts receivable =3000 Land =20000 Building= 40000 Furniture= 6000 Computer = 2400 Note payable = 55000 Accounts payable = 5000 Cap stock = 30000 Revenue = 4600 Electricity expense= 500 Salary expense= 2000 TOTAL 94600 94600 At December 31, the company has to record the following transactions [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","template":"","meta":[],"disciplines":[183],"paper_types":[],"tagged":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/questions\/35369"}],"collection":[{"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/questions"}],"about":[{"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/types\/questions"}],"author":[{"embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/comments?post=35369"}],"version-history":[{"count":0,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/questions\/35369\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/media?parent=35369"}],"wp:term":[{"taxonomy":"disciplines","embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/disciplines?post=35369"},{"taxonomy":"paper_types","embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/paper_types?post=35369"},{"taxonomy":"tagged","embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/tagged?post=35369"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}