AC 302 CHAPTER 13 PROBLEM QUESTION 2

AC 302 CHAPTER 13 PROBLEM QUESTION 2
Name				Date	
Instructor				Course	
Intermediate Accounting 14th Edition by Kieso Weygandt and Warfield						
Primer on Using Excel in Accounting by Rex A Schildhouse						
						
P13-2 (Liability Entries and Adjustments) Listed below are selected transactions of Schultz Department Store for the current year ending December 31.						
						
1. On December 5, the store received			$500 	from the Jackson Players as a deposit		
to be returned after certain furniture to be used in stage production was returned on January 15.						
2. During December, cash sales totaled			$798,000 	which includes the		5%
sales tax that must be remitted to the state by the fifteenth day of the following month.						
3. On December 10, the store purchased for cash three delivery trucks for						$120,000 
The trucks were purchased in a state that applies a				5%	sales tax.	
4. The store determined it will cost			$100,000 	to restore the area surrounding one of its		
store parking lots, when the store is closed in 2 years. Schultz estimates the fair value of the						
obligation at December 31 is		$84,000 				
						
Instructions:						
Prepare all the journal entries necessary to record the transactions noted above as they occurred and any adjusting entries relative to the transactions that would be required to present fair financial statements at December 31. Date each entry. For simplicity, assume that adjusting journal entries are recorded only once a year on December 31.						
						
						
						
						
1	Dec 5	Account Title			Amount	
		Account Title				Amount
						
2	Dec 31	Account Title			Amount	
		Account Title				Amount
		Account Title				Formula
						
3	Dec 10	Account Title			Amount	
		Account Title				Amount
						
4	Dec 31	Account Title			Amount	
		Account Title				Amount