The unadjusted trial balance of the Manufacturing Equitable at December the end of its fiscal year, included the following account balances. Manufacturings financial statements were issued on April
Accounts receivable $
Accounts payable
notes, payable to bank
Mortgage note payable
Other information:
The bank notes, issued August are due on July and pay interest at a rate of payable at maturity.
The mortgage note is due on March Interest at has been paid up to December assume is a realistic rate Manufacturing intended at December to refinance the note on its due date with a new year mortgage note. In fact, on March Manufacturing paid $ in cash on the principal balance and refinanced the remaining $
Included in the accounts receivable balance at December were two subsidiary accounts that had been overpaid and had credit balances totaling $ The accounts were of two major customers who were expected to order more merchandise from Manufacturing and apply the overpayments to those future purchases.
On November Manufacturing rented a portion of its factory to a tenant for $ per year, payable in advance. The payment for the months ended October was received as required and was credited to deferred revenue.
Required:
Prepare any necessary adjusting journal entries at December pertaining to each item of other information ad
Prepare the current and longterm liability sections of the December balance sheet
