Presented Below Is the December 31 Trial Balance of Cassini

question 32

Essay

Presented below is the December 31 trial balance of Cassini Studios.

(1)Prepare adjusting journal entries for the following items:
(a)Adjust the Allowance for Doubtful Accounts to 8 percent of the accounts receivable.
(b)Furniture and equipment is depreciated at 20 percent per year.
(c)Insurance expired during the year,$2,040.
(d)Interest accrued on notes payable,$2,688.
(e)Sales salaries earned but not paid,$1,920.
(f)Advertising paid in advance,$560.
(g)Office supplies on hand,$1,200,charged to Office Expense when purchased.
(2)Prepare closing entries for Cassini after the above adjusting entries have been made.Additional information shows the inventory on December 31 was $64,000.

Understand the concept of using binary variables in optimization for decision making such as plant location decisions.

Understand the composition and importance of quick assets in financial analysis.

Grasp the concept and calculation of the cost of goods sold and its impact on a company's gross profit.

Learn about the inventory management processes including the calculation of merchandise available for sale.

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Definitions:

Acceptance

In contract law, an expression of agreement to the terms of an offer that results in a binding contract between the parties.

Auctioneer

A person or entity that conducts sales in which goods or property are sold to the highest bidder.

Highest Bidder

the person or entity that offers the highest price in a bidding process, such as an auction, and is typically awarded the item or contract up for bid.

Revoking

The act of formally withdrawing, canceling, or revoking a statement, offer, or privilege.