JPJones
Trial Balance
December 1, 2018
Acct Description DR CR
100 Cash 405,653
101 Accounts Receivable 615,000
102 Allowance for Doubtful Accounts 4,600
103 Marketable Securities 18,000
104 Inventory 100,000
105 Prepaid Rent 40,600
106 Prepaid Insurance 38,500
107 Supplies 3,600
125 Equipment 150,000
126 Accumulated Depreciation Equipment 37,500
127 Truck 56,500
128 Accumulated Depreciation Truck 15,875
130 Land 35,000
175 Patents 75,000
201 Accounts Payable 183,300
Record the following adjusting entries in general journal form as of December 31, 2018:
Supplies on hand at the end of the year: $450
Equipment shown on the 12/1 TB was purchased on 1/1/17, has a 8 year life, no salvage value and company uses double-declining balance method for its depreciation.
Included in the truck balance is a fully depreciated truck for $6,500 and a new truck valued at $50,000 which was purchased on 1/1/17. The new truck has a 9-year life, no salvage value and the company uses the sum-of-the-years digits for its depreciation method on this asset.
Audit Reports
Comp r ehensive Material Series Audit R eports 1) Explain why auditors’ reports are important to users of financial statements and why it is desirable to have standard wording. : Auditor's r eports a r e important to users of financial statements because they info r m users of the auditor's opinion as to whether or not the statements a r e fairly stated or whether no conclusion can be made with r ega r d to the fai r ness of their p r esentation . User s especiall y loo k fo r an y deviatio n f r o m th e wo r din g o f the standa r d unqualified r eport and the r easons and implications of such deviations. Having standa r d wo r ding imp r oves communications for the benefit of users of the auditor’s r eport. When the r e a r e departu r es f r om the standa r d wo r ding, users a r e mo r e li k e...
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