Scribd
Upload
152 views

Ap Prob 2

The document provides transaction information from Pistons Company's voucher register for December 2005 and January 2006. It requires preparing adjusting entries as of December 31, 2005 based on the data, including reversing entries for accrued liabilities.

Uploaded by

jhobs
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
152 views

Ap Prob 2

The document provides transaction information from Pistons Company's voucher register for December 2005 and January 2006. It requires preparing adjusting entries as of December 31, 2005 based on the data, including reversing entries for accrued liabilities.

Uploaded by

jhobs
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

PROBLEM NO.

In conjunction with your firm’s examination of the financial statements of Pistons


Company as of December 31, 2005, you obtained from the voucher register the
information shown in the working paper below.
Item Entry Voucher Account
No. Date Ref. Description Amount Charged
1 12.18.05 12-202 Supplies, purchased FOB
destination, 12.15.05; Supplies on
received, 12.17.05 20,000 hand
2 12.18.05 12-204 Auto insurance, 12.15.05 to Prepaid
12.15.06 24,000 insurance
3 12.21.05 12-206 Repair services; received Repairs and
12.20.05 24,000 maintenance
4 12.21.05 12-214 Merchandise shipped FOB
shipping point, 11.20.05;
received, 12.4.05 17,000 Inventory
5 12.21.05 12-219 Payroll, 12.6.05 to 12.20.05 Salaries and
(12 working days) 69,000 wages
6 12.26.05 12-221 Subscription to tax reporting Dues and
service for 2006 5,000 subscription
expense
7 12.28.05 12-230 Utilities for December 2005 29,000 Utilities expense
8 12.28.05 12-234 Merchandise shipped FOB
destination, 12.24.05;
received, 1.2.06 111,500 Inventory
9 12.28.05 12-243 Merchandise shipped FOB
destination, 12.26.05;
received, 12.29.05 84,000 Inventory
10 01.02.06 01-001 Legal services, received Legal and
12.28.05 46,000 professional
expense
11 01.02.06 01-002 Medical services for
employees for December
2005 25,000 Medical expense
12 01.05.06 01-003 Merchandise shipped FOB
shipping point, 12.29.05;
received, 1.4.06 55,000 Inventory
13 01.10.06 01-004 Payroll, 12.21.05 to 01.05.06
(12 working days in total, Salaries and
4 working days in Jan.) 72,000 wages
14 01.10.06 01-005 Merchandise shipped FOB
shipping point, 1.2.06;
received, 1.5.06 64,000 Inventory
15 01.12.06 01-006 Manufacturing royalties, Manufacturing
Dec. 2005 39,000 costs
Item Entry Voucher Account
No.
Date Ref. Description Amount Charged
16 01.12.06 01-007 Merchandise shipped FOB
destination, 1.3.06;
received, 1.10.06 38,000 Inventory
17 01.13.06 01-008 Maintenance services, 9,000 Repairs and
received 1.9.06 maintenance
18 01.14.06 01-009 Interest on bank loan,
10.12.05 to 1.10.06 30,000 Interest expense
19 01.15.06 01-010 Manufacturing equipment, Machinery and
installed on 12.29.05 254,000 equipment
20 01.15.06 01-011 Dividends declared, Dividends
12.15.05 160,000 payable

Accrued liabilities as of December 31, 2005 were as follows:


Accrued payroll 48,000
Accrued interest payable 26,667
Dividends payable 160,000
Accrued royalties payable 39,000

The Accrued payroll, Accrued interest payable, and Accrued royalties payable
accounts were reversed on January 1, 2006.

REQUIRED:
Prepare adjusting entries as of December 31, 2005 based on your review of the
data given above.

You might also like