1. Financial Accounting (Journal Entry Assignment)
Financial Accounting (Journal Entry Assignment)Required:Windsor-Essex Tool is a
manufacturing company. It is organized as an Ontario corporation.Journal entries for the
month of December 2013 for each of the following transactions and events are to be
prepared in proper form including explanation. In aIDition, any adjusting journal entries
required at the end of December 2013 should also be prepared. If a journal entry is not
required for certain items noted below you are to provide an explanation as to why you did
not make an entry. You should cross-reference each of your journal entries with the
corresponding letter below that applies to the particular transaction or event you are
journalizing.Each journal entry is worth 1.5 marks (1/2 mark for fully correct debit entry,
1/ 2 mark for fully correct credit entry, 1/ 2 mark for reasonable explanation).You are to
assume that all journal entries made prior to December were properly prepared and that all
adjustments needed on November 30 were properly prepared. All amounts are in Canadian
dollars. The company uses the straight line method of depreciation.The following general
ledgers accounts should be used as required. You may not need to use all of the general
ledgers accounts.List of general ledger accounts for journal entry exerciseAccounts payable,
accounts receivable, accumulated amortization building, accumulated amortization
equipment, accumulated amortization land, amortization building, amortization equipment,
amortization land, cash, cost of good sold, deferred (unearned) revenue, deposit on
equipment, equipment, insurance expense, interest receivable, interest revenue, inventory
tools for resale, investment in Cabana Bearing, loan payable, manufacturing supplies
expense, manufacturing supplies inventory, note receivable, prepaid insurance, rent
revenue, retained earnings, revenue sale of tools, share capital, utilities expense.Please type
your journal entries on the attached journal entry form to complete this
assignment. Students must submit a hard copy of your journal entries to Stephanie Miller
by noon, October 10, 2014 latest. Attach a cover sheet including your name and student ID
number and section – Prof. Stevens – Section 1.Accounting InformationThe following
transactions occurred December 1, 2013a) At November 30 the company owned land and a
building. The land cost24,000 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 useful 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 useful life of the used equipment is 5 years 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
2. 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) Invested in a
3 month note from the bank in the amount of 10,000 with an interest rate of 3% per
annually.The following transaction occurred December 8, 2013f) The supplies ordered in d)
were delivered.The following transactions occurred December 15, 2013g) 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 purchased 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,
2013k) The company had purchased a one year fire insurance policy on July 1, 2013. The
balance in the prepaid insurance account on November 30, 2013 for this policy was 7,000.l)
Per a physical count of supplies there are 1,000 of manufacturing supplies on hand.m) The
supplier in j) reported that the tool is one half built and will be delivered in early
January.The following item occurred on January 16, 2014n) Received an invoice from
Union Gas for natural gas used from December 16 to January 15 in the amount of
1,000. PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET AN AMAZING
DISCOUNT
