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Raymond Company s trial balance at December 31 2017 is presented below All 2017 transactions have been recorded except for the items described below and on page 473 Unrecorded transactions

Raymond Company s trial balance at December 31, 2017, is presented below. All 2017 transactions have been recorded except for the items described below and on page 473. Unrecorded transactions: 1. On May 1, 2017, Raymond purchased equipment for £13,000 plus sales taxes of £780 (all paid in cash). 2. On July 1, 2017, Raymond sold for £3,500 equipment which originally cost £5,000. Accumulated depreciation on this equipment at January 1, 2017, was £1,800; 2017 depreciation prior to the sale of the equipment was £450. 3. On December 31, 2017, Raymond sold on account £9,400 of inventory that cost £6,600. 4. Raymond estimates that uncollectible accounts receivable at year-end is £4,000. 5. The note receivable is a one-year, 8% note dated April 1, 2017. No interest has been recorded. 6. The balance in prepaid insurance represents payment of a £4,400 6-month premium on October 1, 2017. 7. The building is being depreciated using the straight-line method over 40 years. The residual value is £20,000. 8. The equipment owned prior to this year is being depreciated using the straight-line method over 5 years. The residual value is 10% of cost. 9. The equipment purchased on May 1, 2017, is being depreciated using the straight-line method over 5 years, with a residual value of £1,000. 10. The patent was acquired on January 1, 2017, and has a useful life of 10 years from that date. 11. Unpaid salaries and wages at December 31, 2017, total £2,200. 12. The unearned ren

Apr 17 2020 View more View Less

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