The following items pertain to the Current Assets section of the balance sheet for Jackson Corp. at the end of its accounting year, December 31, 2016. Each item must be considered and any necessary adjustment recognized. Additionally, the accountant for Jackson wants to develop the Current Assets section of the balance sheet as of the end of 2016. a Cash and cash equivalents amount to $19,375. A 9%, 120-day certificate of deposit was purchased on December 1, 2016, for $8,000. Gross accounts receivable at December 31, 2016, amount to $42,000. Before adjustment, the credit balance in Allowance for Doubtful Accounts is $340. Based on past experience, the accountant estimates that 3% of the gross accounts receivable outstanding at December 31, 2016, will prove to be uncollectible. d. A customer's 12%, 90-day promissory note in the amount of $4,000 is held at the end of the year. The note has been held for 45 days during 2016. Required: C 1. Record the adjusting entries required in (b), (c), and (d). 2. Prepare the Current Assets section of Jackson's balance sheet as of December 31, 2016. In addition to the information in the preceding items, the balances in Inventory and Prepaid Insurance on this date are $65,000 and $4,800, respectively.
The following items pertain to the Current Assets section of the balance sheet for Jackson Corp. at the end of its accounting year, December 31, 2016. Each item must be considered and any necessary adjustment recognized. Additionally, the accountant for Jackson wants to develop the Current Assets section of the balance sheet as of the end of 2016. a Cash and cash equivalents amount to $19,375. A 9%, 120-day certificate of deposit was purchased on December 1, 2016, for $8,000. Gross accounts receivable at December 31, 2016, amount to $42,000. Before adjustment, the credit balance in Allowance for Doubtful Accounts is $340. Based on past experience, the accountant estimates that 3% of the gross accounts receivable outstanding at December 31, 2016, will prove to be uncollectible. d. A customer's 12%, 90-day promissory note in the amount of $4,000 is held at the end of the year. The note has been held for 45 days during 2016. Required: C 1. Record the adjusting entries required in (b), (c), and (d). 2. Prepare the Current Assets section of Jackson's balance sheet as of December 31, 2016. In addition to the information in the preceding items, the balances in Inventory and Prepaid Insurance on this date are $65,000 and $4,800, respectively.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 12C
Related questions
Question
answer in text form please (without image)
Transcribed Image Text:The following items pertain to the Current Assets section of the balance sheet for Jackson Corp. at the end of its accounting year, December 31, 2016. Each item must be considered and any necessary adjustment recognized. Additionally, the accountant
for Jackson wants to develop the Current Assets section of the balance sheet as of the end of 2016.
a. Cash and cash equivalents amount to $19,375.
b.
A 9%, 120-day certificate of deposit was purchased on December 1, 2016, for $8,000.
C.
Gross accounts receivable at December 31, 2016, amount to $42,000. Before adjustment, the credit balance in Allowance for Doubtful Accounts is $340. Based on past experience, the accountant estimates that 3% of the gross accounts receivable
outstanding at December 31, 2016, will prove to be uncollectible.
d. A customer's 12%, 90-day promissory note in the amount of $4,000 is held at the end of the year. The note has been held for 45 days during 2016.
Required:
1. Record the adjusting entries required in (b), (c), and (d).
2. Prepare the Current Assets section of Jackson's balance sheet as of December 31, 2016. In addition to the information in the preceding items, the balances in Inventory and Prepaid Insurance on this date are $65,000 and $4,800, respectively.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning