Scribd
Upload
350 views

Comprehensive Problem

- The document provides information about unrecorded transactions for Hassellhouf Company for the year ended December 31, 2017, including purchases and sales of equipment, inventory sales, receivables, prepaid expenses, depreciation, and various payables. - Students are instructed to prepare journal entries for the transactions, an updated December 31, 2017 trial balance, income statement, retained earnings statement, and classified balance sheet. - The document also provides a continuation problem about Natalie from Cookie Creations considering buying a business van and calculating its depreciation.

Uploaded by

Rahul
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
350 views

Comprehensive Problem

- The document provides information about unrecorded transactions for Hassellhouf Company for the year ended December 31, 2017, including purchases and sales of equipment, inventory sales, receivables, prepaid expenses, depreciation, and various payables. - Students are instructed to prepare journal entries for the transactions, an updated December 31, 2017 trial balance, income statement, retained earnings statement, and classified balance sheet. - The document also provides a continuation problem about Natalie from Cookie Creations considering buying a business van and calculating its depreciation.

Uploaded by

Rahul
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

COMPREHENSIVE PROBLEM: CHAPTERS 39 TO

CP9
Hassellhouf Company's trial balance at December 31, 2017, is presented. All 2017 transactions have
been recorded except for the items described.

Unrecorded transactions:

On May 1, 2017, Hassellhouf purchased equipment for $21,200 plus sales taxes of $1,600
(all paid in cash).

On July 1, 2017, Hassellhouf sold for $3,500 equipment which originally cost $5,000.
Accumulated depreciation on this equipment at January 1, 2017, was $1,800; 2017 depreciation
prior to the sale of the equipment was $450.

On December 31, 2017, Hassellhouf sold on account $9,000 of inventory that cost $6,300.

Hassellhouf estimates that uncollectible accounts receivable at year-end is $3,500.

The note receivable is a one-year, 8% note dated April 1, 2017. No interest has been
recorded.

The balance in prepaid insurance represents payment of a $3,600 6-month premium on


September 1, 2017.

The building is being depreciated using the straight-line method over 30 years. The salvage
value is $30,000.

The equipment owned prior to this year is being depreciated using the straight-line method
over 5 years. The salvage value is 10% of cost.

The equipment purchased on May 1, 2017, is being depreciated using the straight-line
method over 5 years, with a salvage value of $1,800.

The patent was acquired on January 1, 2017, and has a useful life of 10 years from that date.

Unpaid salaries and wages at December 31, 2017, total $5,200.

The unearned rent revenue of $6,000 was received on December 1, 2017, for 3 months' rent.

Both the short-term and long-term notes payable are dated January 1, 2017, and carry a 9%
interest rate. All interest is payable in the next 12 months.

Instructions
(a)
Prepare journal entries for the transactions listed above.
(b)
Prepare an updated December 31, 2017, trial balance.
Totals $1,205,040

(c)
Prepare a 2017 income statement and a retained earnings statement.
(d)
Prepare a December 31, 2017, classified balance sheet.
Total assets $259,200

CONTINUING PROBLEM

COOKIE CREATIONS
(Note: This is a continuation of the Cookie Creations problem from Chapters 1 through 8.)
CC9
Natalie is also thinking of buying a van that will be used only for business. Natalie is concerned
about the impact of the van's cost on her income statement and balance sheet. She has come to you
for advice on calculating the van's depreciation.
Go to the book's companion website, www.wiley.com/college/weygandt, to see the completion of this
problem.

You might also like