FDNACCT 09 · Enoteca Capstone

Enoteca Fine Wines · December 31, 2020. All amounts are Philippine pesos (₱). Before adjustment, Accounts receivable is 17,000 and Allowance for doubtful accounts has a credit balance of 200. The required ending allowance is 2% of receivables; use the allowance method.

Enoteca Fine Wines · December 31, 2020. All amounts are Philippine pesos (₱). Before adjustment, Accounts receivable is 17,000 and Allowance for doubtful accounts has a credit balance of 200. The required ending allowance is 2% of receivables; use the allowance method.

Enoteca Fine Wines · December 31, 2020. All amounts are Philippine pesos (₱). Prepaid advertising is 4,800 for four evenly provided months ending January 31, 2021. The entire payment was initially recorded as an asset. Three months expire by the reporting date; no expense adjustment has been made.

Enoteca Fine Wines · December 31, 2020. All amounts are Philippine pesos (₱). Supplies have a pre-adjustment asset balance of 3,000. The year-end count finds 1,300 unused; no supplies expense adjustment has been made.

Enoteca Fine Wines · December 31, 2020. All amounts are Philippine pesos (₱). Store equipment costs 270,000 and was bought July 1, 2019. Its useful life is five years and residual value is 20,000. Use straight-line depreciation for the full 2020 year. Prior accumulated depreciation is 25,000.

Enoteca Fine Wines · December 31, 2020. All amounts are Philippine pesos (₱). Furniture and fixtures cost 60,000. The stated depreciation rate is 15% of cost annually. The furniture is used throughout 2020, and prior accumulated depreciation is 15,000.

Enoteca Fine Wines · December 31, 2020. All amounts are Philippine pesos (₱). A two-year bank loan of 200,000 at 6% annual simple interest begins May 1, 2020. No interest on this loan has yet been recorded or paid. Accrue the eight months May–December. The separate recorded Interest expense balance of 1,500 remains in the period’s total expenses.

Enoteca Fine Wines · December 31, 2020. All amounts are Philippine pesos (₱). The 80,000 Unearned seminar fees balance covers eight equally priced wine seminars. Six have been completed by year-end and two remain to be performed; no revenue adjustment has been posted.

Enoteca Fine Wines · December 31, 2020. All amounts are Philippine pesos (₱). Recorded Rent expense is 132,000, representing the nine months paid during 2020. Rent is incurred evenly at a constant monthly rate. The other three months remain unpaid and unrecorded.

Enoteca Fine Wines · December 31, 2020. All amounts are Philippine pesos (₱). Annual Salaries and wages expense is 240,000, evenly incurred across twelve months. The employer’s December payroll taxes have not been recorded or paid: use the supplied historical social-security rate of 6.2% and Medicare rate of 1.45%. The pre-adjustment Payroll taxes expense balance is 33,240.

Enoteca Fine Wines is a wine retailer. All amounts are Philippine pesos (₱). Use accrual accounting, periodic inventory, asset-method prepayments, liability-method unearned revenue, straight-line depreciation, and the allowance method. The reporting date is December 31, 2020.

Unadjusted trial balance

Additional facts

1. Physical ending inventory is 140,000.
2. Required doubtful-account allowance is 2% of ending Accounts receivable; the unadjusted allowance has a 200 credit balance.
3. Prepaid advertising covers four evenly earned months ending January 31, 2021; three months have expired by December 31.
4. Supplies remaining at year-end are 1,300.
5. Store equipment was bought July 1, 2019; estimated useful life is five years and residual value 20,000. The prior 25,000 accumulated depreciation is already recorded.
6. Furniture is depreciated at 15% of its 60,000 cost per year; prior accumulated depreciation is 15,000.
7. Notes payable is a two-year, 6% annual-interest bank loan received May 1, 2020. Accrue May–December loan interest as an additional adjustment to the 1,500 already in Interest expense; no interest on this loan has yet been recorded.
8. Advance seminar fees cover eight equally priced seminars, six completed by year-end.
9. Another 8,300 commissions has been earned but not collected or recorded.
10. The 132,000 recorded rent pays nine months at a constant monthly rate; the remaining three months are unpaid.
11. Salaries are evenly incurred through the year. Employer payroll taxes on December salary remain unpaid: 6.2% social security and 1.45% Medicare. These supplied historical rates apply only to this exercise.

Enoteca Fine Wines is a wine retailer. All amounts are Philippine pesos (₱). Use accrual accounting, periodic inventory, asset-method prepayments, liability-method unearned revenue, straight-line depreciation, and the allowance method. The reporting date is December 31, 2020.

Unadjusted trial balance

Additional facts

1. Physical ending inventory is 140,000.
2. Required doubtful-account allowance is 2% of ending Accounts receivable; the unadjusted allowance has a 200 credit balance.
3. Prepaid advertising covers four evenly earned months ending January 31, 2021; three months have expired by December 31.
4. Supplies remaining at year-end are 1,300.
5. Store equipment was bought July 1, 2019; estimated useful life is five years and residual value 20,000. The prior 25,000 accumulated depreciation is already recorded.
6. Furniture is depreciated at 15% of its 60,000 cost per year; prior accumulated depreciation is 15,000.
7. Notes payable is a two-year, 6% annual-interest bank loan received May 1, 2020. Accrue May–December loan interest as an additional adjustment to the 1,500 already in Interest expense; no interest on this loan has yet been recorded.
8. Advance seminar fees cover eight equally priced seminars, six completed by year-end.
9. Another 8,300 commissions has been earned but not collected or recorded.
10. The 132,000 recorded rent pays nine months at a constant monthly rate; the remaining three months are unpaid.
11. Salaries are evenly incurred through the year. Employer payroll taxes on December salary remain unpaid: 6.2% social security and 1.45% Medicare. These supplied historical rates apply only to this exercise.

Enoteca Fine Wines is a wine retailer. All amounts are Philippine pesos (₱). Use accrual accounting, periodic inventory, asset-method prepayments, liability-method unearned revenue, straight-line depreciation, and the allowance method. The reporting date is December 31, 2020.

Unadjusted trial balance

Additional facts

1. Physical ending inventory is 140,000.
2. Required doubtful-account allowance is 2% of ending Accounts receivable; the unadjusted allowance has a 200 credit balance.
3. Prepaid advertising covers four evenly earned months ending January 31, 2021; three months have expired by December 31.
4. Supplies remaining at year-end are 1,300.
5. Store equipment was bought July 1, 2019; estimated useful life is five years and residual value 20,000. The prior 25,000 accumulated depreciation is already recorded.
6. Furniture is depreciated at 15% of its 60,000 cost per year; prior accumulated depreciation is 15,000.
7. Notes payable is a two-year, 6% annual-interest bank loan received May 1, 2020. Accrue May–December loan interest as an additional adjustment to the 1,500 already in Interest expense; no interest on this loan has yet been recorded.
8. Advance seminar fees cover eight equally priced seminars, six completed by year-end.
9. Another 8,300 commissions has been earned but not collected or recorded.
10. The 132,000 recorded rent pays nine months at a constant monthly rate; the remaining three months are unpaid.
11. Salaries are evenly incurred through the year. Employer payroll taxes on December salary remain unpaid: 6.2% social security and 1.45% Medicare. These supplied historical rates apply only to this exercise.

Enoteca Fine Wines · December 31, 2020. All amounts are Philippine pesos (₱). Vince Carbone’s beginning capital is 333,800. Drawings for the year are 141,100. Net profit has been determined to be 184,040. There are no additional contributions or other capital changes.

Enoteca Fine Wines · December 31, 2020. All amounts are Philippine pesos (₱). Closing entries have been posted. The complete remaining account balances are:

Enoteca Fine Wines · December 31, 2020. All amounts are Philippine pesos (₱). Before adjustment, Accounts receivable is 17,000 and Allowance for doubtful accounts has a credit balance of 200. The required ending allowance is 2% of receivables; use the allowance method. Commissions receivable is 8,300 after recognizing the uncollected commissions; there are no other receivables.

Enoteca Fine Wines · December 31, 2020. All amounts are Philippine pesos (₱). Closing entries have been posted. The complete remaining account balances are:

Enoteca Fine Wines · December 31, 2020. All amounts are Philippine pesos (₱). The year-end commission adjustment debited Commissions receivable and credited Commissions income for 8,300. It is to be reversed January 1, 2021.

Enoteca Fine Wines · December 31, 2020. All amounts are Philippine pesos (₱). Closing entries have been posted. The complete remaining account balances are:

Net assets presented in the statement of financial position are 697,320; the trial balance presents asset and contra-asset balances separately.