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(Solved): Ace Corporation engaged in the following transactions during 2013 Adjusting entries are needed for s ...

Ace Corporation engaged in the following transactions during 2013 Adjusting entries are needed for some of these transactions Transactions and adjusting entries required are numbered (instead of dated)You must prepare the entries for each numbered item below on the Journal Entries sheet in this workbook Amounts below are in thousands of dollars . Round your calculations to the nearest hundred dollars You should include your analysis and or calculations for certain items on the designated sheets in this workbook.

1. Ace had credit sales during 2013. $3,600

2. The inventory Ace sold on account (in Item #1 ) cost $1,900.

3. Ace collected cash from customers on account. $2,250

4. Ace paid cash to purchase office supplies. $164

5. Ace counted office supplies on hand at 12/31/13 with cost of $116

6. Ace purchased inventory on account. $1,868

7. Ace paid cash to vendors on account. $1,943

8. Ace paid all income taxes owed as of 12/31/12 in March of 2013. $14

9. Ace paid salaries to employees . No salaries were accrued as of 12/31/12, and no accrual is needed as of 12/31/13. $349

10. Ace paid $50 for meals & entertainment expenses during 2013. $50

11. Ace declared and paid dividends . Ace does not use a dividends account in its general ledger. $500

12. Ace settled warranty claims by paying cash during 2013. $70

13. Ace offers a 1-year warranty on its products and estimates warranty costs to be 2% of sales

14. Ace issued bonds on 7/1/ 13 . Go to the Bonds worksheet to analyze these bonds and determine the entries Ace needs to make. BONDS

15. Ace issued a non-cash loan on 1/1/13 for the purchase of land. Go to the Non-cash loans worksheet to analyze this transaction and determine the entries Ace needs to make. NON-CASH LOANS

16. Ace entered into 2 lease contracts on 1/1/13. Go to the Leases worksheet to analyze these leases and determine the entries Ace needs to make. LEASES

17. Ace had transactions with its trading and available for sale investments during 2013. Go to the Investments worksheet to analyze Ace’s investments portfolios and determine the entries Ace needs to make. INVESTMENTS

18. after you have completed Ace’s accounting for all of the previous items, you are then ready to complete Ace’s provision for income taxes. INCOME TAXES

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To prepare the journal entries for the transactions mentioned, I will provide the necessary entries and explanations for each item: Credit sales during 2013: $3,600 Accounts Receivable 3,600 Sales Revenue 3,600 Explanation: Recognizing the credit sales made during 2013. Cost of inventory sold on account (from Item #1): $1,900 Cost of Goods Sold 1,900 Inventory 1,900 Recording the cost of inventory sold on account.

Cash collected from customers on account: $2,250 Cash 2,250 Accounts Receivable 2,250 Explanation: Recognizing the cash collected from customers on account. Cash paid to purchase office supplies: $164 Office Supplies Expense 164 Cash 164 Explanation: Recording the cash payment made for office supplies.
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