Question

Analyze and journalize end of period adjusting entries as necessary based on the following information in General Journal. Use the standard 4 column date, account name (and note), credit, and debit, format.

14	December 31, 2009 - Record the depreciation for all equipment for the year. Management estimates annual depreciation as the amount to the right.	209,688
15	December 31, 2009 - On January 31, 2009, Tech Co purchased a truck. Record any necessary adjusting entries for the note used to pay for the truck.	*
16	December 31, 2009 - Tech Co determined its regular sales figures for September through December. In that time, the company sold and delivered product with the sales price listed to the right. All sales were on credit.	90,821,462
17	December 31, 2009 - Tech Co determined that, between September and December, it collected cash for Accounts Receivable in the amount to the right.	94,908,427
18	December 31, 2009 - Tech Co management estimated that, as of today, the total balance in Allowance for Doubtful Accounts should be equal 4.5% of the current balance in Accounts Receivable (i.e., they use the Balance Sheet method).	**
19	December 31, 2009 - Management calculated that the company owes interest (in the amout to the right) on its Bonds Payable and Notes Payable (other than the note associated with the delivery truck, for which you recorded interest earlier). Interest will be paid in future years.	103,125
20	December 31, 2009 - Tech Co performed its annual inventory count for its periodic inventory. The total cost of ending inventory in the warehouse is listed to the right.	31,872,500

Date

Account Name (and note)

Debit

Credit

*Note, on Jan 31, Tech Co purchases a new delivery vehicle. The cost in dollars, is $104,500 and Tech Co takes out a 5-year "note" to pay for the truck with 4% interest due each year on Jan 31.

** The opening balance for 2009 of accounts receivable is 2,127,840.

Answer 1

Journal Entries: -

Date	Particulars	Dr. / Cr.	Amount
31 Dec 2009	Depreciation A/c	Dr.	2,09,688.00
	Equipment A/c	Cr.	2,09,688.00
31 Dec 2009	Interest Expense A/c	Dr.	3,831.67
	Interest Accrued on Note Payable	Cr.	3,831.67
31 Dec 2009	Account Receivable A/c	Dr.	9,08,21,462
	Sales A/c	Cr.	9,08,21,462
31 Dec 2009	Cash A/c	Dr.	9,49,08,427
	Account Receivable A/c	Cr.	9,49,08,427
31 Dec 2009	No Allowance as balance of Account Receivable is credit as on
	31st December 2009
31 Dec 2009	Interets Expenses A/c	Dr.	1,03,125
	Accrued Interest (On Bond & Notes Payable other than related to Truck)	Cr.	1,03,125
31 Dec 2009	Inventory A/c shall have Debit balance of 3,18,72,500 as on 31st December 2009. In case any difference then it shall be adjusted with P&L A/c.