Accounting Homework Help?

I need a little bit of help on my accounting homework, i would not be asking unless i really needed it

It is not worth any marks, I just want to learn with the correct answers

I will be sure to give 10 marks

I need to know which account to debit and credit. Thanks!

Windsor-Essex Tool is a manufacturing company. It is organized as an Ontario corporation.

Accounting Information

The following transactions occurred December 1, 2009

a) At November 30 the company owned land and a building. The land cost

24, 000 and now has a value of 32,000. The building’s cost of 88,800 is near its current value if sold. The building has an estimated life of 40 years with no residual value. It is currently 10 years old.

b) Purchased a used piece of equipment for 18,000 cash. If purchased new the equipment would have cost 26,000. The estimated life is 5 year and the value at the end of 5 years is expected to be 1,800.

c) The company rents excess space in its building to a tenant, Cabana Bearing. Windsor-Essex Tool received three months advance rent from Cabana Bearing in the amount of 1,500.

d) Ordered manufacturing supplies inventory of 2,000. At November 30 an inventory of 8,000 of supplies was on hand and recorded on the books.

e) Purchased a 3 month note receivable from the bank in the amount of 10,000 with an interest rate of 3% per annually.

The following transaction occurred December 8, 2009

f) The supplies ordered in d) were delivered.

The following transactions occurred December 15, 2009

g) Paid for the supplies received in f).

h) Sold and delivered a manufacturing tool to Ford at the price of 22,000 on account. The cost to build the tool over 4 months was 17,000 .

i) Windsor-Essex Tool bought a 10% interest in the common shares of Cabana Bearing for 10,000 cash.

j) Placed a deposit on a specialized piece of equipment to be built for Windsor-Essex Tool at a price of 20,000. The deposit was 4,000.

The following items were noted at December 31, 2009

k) The company had purchased a one year fire insurance policy on July 1, 2009. The balance in the prepaid insurance account on November 30, 2009 for this policy was 7,000.

l) Per a physical count there are 1,000 of manufacturing supplies on hand.

m) The supplier in k) reported that the tool is one half built and will be delivered in early January.

The following item occurred on January 16, 2010

n) Received an invoice from Union Gas for natural gas used from December 16 to January 15 in the amount of 1,000.

2 Answers

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  • JKRB
    Lv 7
    1 decade ago
    Favorite Answer

    The following transactions occurred December 1, 2009

    a) At November 30 the company owned land and a building. The land cost

    24, 000 and now has a value of 32,000. The building’s cost of 88,800 is near its current value if sold. The building has an estimated life of 40 years with no residual value. It is currently 10 years old.

    Not an accounting event. No journal entry required

    b) Purchased a used piece of equipment for 18,000 cash. If purchased new the equipment would have cost 26,000. The estimated life is 5 year and the value at the end of 5 years is expected to be 1,800.

    Dr Equipment

    Cr Cash

    c) The company rents excess space in its building to a tenant, Cabana Bearing. Windsor-Essex Tool received three months advance rent from Cabana Bearing in the amount of 1,500.

    Dr Cash

    Cr Unearned Rent Fees

    d) Ordered manufacturing supplies inventory of 2,000. At November 30 an inventory of 8,000 of supplies was on hand and recorded on the books.

    Not an accounting event. No entry required.

    e) Purchased a 3 month note receivable from the bank in the amount of 10,000 with an interest rate of 3% per annually.

    Dr Notes Receivable

    Cr Cash

    The following transaction occurred December 8, 2009

    f) The supplies ordered in d) were delivered.

    Dr Supplies

    Cr Accounts Payable

    The following transactions occurred December 15, 2009

    g) Paid for the supplies received in f).

    Dr Accounts Payable

    Cr Cash

    h) Sold and delivered a manufacturing tool to Ford at the price of 22,000 on account. The cost to build the tool over 4 months was 17,000 .

    Dr Accounts Receivable

    Cr Sales

    Dr Cost of Goods Sold

    Cr Merchandise Inventory

    i) Windsor-Essex Tool bought a 10% interest in the common shares of Cabana Bearing for 10,000 cash.

    Dr Available for Sale Securities

    Cr Cash

    j) Placed a deposit on a specialized piece of equipment to be built for Windsor-Essex Tool at a price of 20,000. The deposit was 4,000.

    Dr Deposit

    Cr Cash

    The following items were noted at December 31, 2009

    k) The company had purchased a one year fire insurance policy on July 1, 2009. The balance in the prepaid insurance account on November 30, 2009 for this policy was 7,000.

    Dr Insurance Expense

    Cr Prepaid Insurance

    l) Per a physical count there are 1,000 of manufacturing supplies on hand.

    Dr Supplies Expense

    Cr Supplies

    m) The supplier in j) reported that the tool is one half built and will be delivered in early January.

    Not an accounting event. No entry is required

    The following item occurred on January 16, 2010

    n) Received an invoice from Union Gas for natural gas used from December 16 to January 15 in the amount of 1,000.

    Dr Utilities Expense

    Cr Accounts Payable

  • 4 years ago

    right here is the question for the chemical x42 calculate the of pounds of cloth offered, the common value consistent with pound of cloth, and the full universal textile value. the common called for a million pound and classic value $0.40 consistent with pound much less. textile value variance-80 4,000 F textile utilization variance 80,000 U; finished textile variance-4,000 F; product requiring this chemical 200,000

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