000i na55. Selected accounts of Farm Company are shown below as of January 31 of the current year, before anyadjusting entries have been made. Farm Company's accounting year begins on January 1DebitCreditPrepaid rent$12,600SuppliesOffice equipment9,90025,200Unearned service fees$18,000Wages expense24,000Use the following information to prepare the necessary January 31 adjusting entries:(6) Prepaid rent represents rent for January, February, March, and April.(7) January 31 supplies on hand total $3,900.(8) Office equipment is expected to last 12 years.(9) Last month the firm received $18,000 of service fees in advance. One-half of these fees wereearned during January.(10)Accrued wages not recorded at January 31 are $2,850.

Adjusting entries: Adjusting entries are those entries which are recorded at the end of the year, to…

Answered: 000 i na 55. Selected accounts of Farm…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter3: Basic Accounting Systems: Accrual Basis

Section: Chapter Questions

Problem 3.8E: Adjustment for supplies Answer each of the following independent questions concerning supplies and...

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Adjustment for supplies Answer each of the following independent questions concerning supplies and the adjustment for supplies. a. The balance in the supplies account, before adjustment at the end of the year, is $3,500. What is the amount of the adjustment if the amount of supplies on hand at the end of the year is $1,100? b. The supplies account has a balance of $650. and the supplies expense account has a balance of $1,950 at the end of the first year of operations. What was the amount of supp lies purchased during the year?
Adjustment process and financial statements Adjustment data for Ms. Ellen’s Laundry Inc. for the year ended December 31, 20Y8. are as follows: a. Wages accrued but not paid at December 31. $2150 h. Depreciation of equipment during the year. $12500 c. Laundry supplies on hand at December 31. $1,500 d. Insurance premiums expired. $4600 Instructions 1. Using the following integrated financial statement framework, record each adjustment to the appropriate accounts, identifying each adjustment by its letter. After all adjustments are recorded, determine the balances.
DATA PROVIDEDThe pre-adjustment trial balance of Wing-It (Pty) Ltd as at 31 August 2022 is presented:AccountDebitCreditProfessional fees765 000Goods sold435 000Cost of sales215 000Interest received19 500Interest on loan6 300Bank charges3 200Cleaning1 500Staff welfare650Salaries and wages35 850Municipal services6 850Printing and stationery16 715Telephone18 600Fuel and oil56 000Repairs and maintenance: Building5 200Repairs and maintenance: Vehicles6 850Capital: Blue520 000Capital: Green630 000Drawings: Blue35 000Drawings: Green27 000Current account: Blue2 500Current account: Green6 400Retained income265 000Land500 000Buildings1 500 000Accumulated depreciation on buildings21 000Vehicles380 000Accumulated depreciation on vehicles65 000Equipment and electronics79 500Accumulated depreciation on equipment and electronics1 5008% Long-term loan325 000Bank: FNB168 000Bank: ABSA32 000Debtors control account85 000Allowance for credit losses6 400Creditors control account78 600Petty cash2…
On 1 January 2020, a company received OMR 14000 cash as rent revenue for two years. Pass the adjusting entry on 31st December 2020 Select one: a. Date Particulars Debit (OMR) Credit (OMR) 31 Dec Unearned rent revenue Income rent revenue Income 7000 7000 b. None of these c. Date Particulars Debit (OMR) Credit (OMR) 31 Dec Unearned rent revenue Income rent revenue Income 14000 14000 d. Date Particulars Debit (OMR) Credit (OMR) 31 Dec Cash Unearned rent revenue Income 14000 14000
On 1 January 2020, a company received OMR 14000 cash as rent revenue for two years. Pass the adjusting entry on 31st December 2020 Select one: a. None of these b. Date Particulars Debit (OMR) Credit (OMR) 31 Dec Unearned rent revenue Income rent revenue Income 7000 7000 c. Date Particulars Debit (OMR) Credit (OMR) 31 Dec Unearned rent revenue Income rent revenue Income 14000 14000 d. Date Particulars Debit (OMR) Credit (OMR) 31 Dec Cash Unearned rent revenue Income 14000 14000
From the following given data, prepare adjusting journal entries for the year ended December 31, 2021: Purchase of supplies for P3,000. At the end of the year, P1,000 cost of supplies were actually used. Expense method was used in payment of supplies. A P48,000 6%, 120-day note was received from a client dated November 1, 2021. The interest was not yet collected at the end of the accounting period. Before adjustments, the balance of laundry supplies inventory was P35,000. Physical count of supplies inventory was P15,000. An office equipment was acquired on May 31, 2021 for P150,000. The office equipment has an estimated life of 5 years without scrap value. A copying machine was rented on November 30, 2021 at P1.00/copy of production. It reported to have produced 300 copies as of December 31, 2021. No payment was made as of this date. Signed an advertising contract on December 1, 2021 with a radio station for P3,500. The contract will commence upon payment on December 15. 2021 and will…
A partial adjusted trial balance of Piper Company at January 31, 2020, shows the following. Piper CompanyAdjusted Trial BalanceJanuary 31, 2020 Debit Credit Supplies $ 700 Prepaid Insurance 2,400 Salaries and Wages Payable $ 800 Unearned Service Revenue 750 Supplies Expense 950 Insurance Expense 400 Salaries and Wages Expense 1,800 Service Revenue 2,000 Instructions Answer the following questions, assuming the year begins January 1. a. If the amount in Supplies Expense is the January 31 adjusting entry, and $850 of supplies was purchased in January, what was the balance in Supplies on January 1? b. If the amount in Insurance Expense is the January 31 adjusting entry, and the original insurance premium was for one year, what was the total premium and when was the policy purchased? c. If $2,500 of salaries was paid in January, what was the balance in Salaries and Wages Payable at December 31, 2019? d. If $1,600 was received…
At 31 October 2019 before any year-end adjustments, a companies insurance expense had a normal balance of 3800 and its prepaid insurance account had a normal balance of 1450. It is revealed that 3000 of the 5250 total related to benefits that expired in the year 2019. The required adjusting entry is: a) debit insurance expense for 3000 b) credit prepaid insurance for 800 c) credit prepaid insurance for 1450 d) debit prepaid insurance for 800
At January 1, 2020, Zuhoor Muscat Company had supplies on hand of RO 600. During the year, Zuhoor Muscat Company purchased supplies for RO 2,900. On December 31, 2020, the supplies account showed RO 2,000 of used supplies. What is the supplies balance on December 31, 2020, after adjustment?
Swerte Co. received P45,600 on May 1, 2020 for one year’s rent in advance and recorded the transaction with a credit to real account. The December 31,2020 Adjusting entry is a.Debit - Unearned rent Credit - Rent Revenue for P30,400 b.Debit -Unearned rent Credit - Rent Revenue for P15,200 c.Debit -Rent Revenue Credit - Unearned rent for P30,400 d.Debit -Rent Revenue Credit - Unearned rent for P15,200
The following pre‐adjustment trial balance appeared in the books of Central Perk Furniture Storeat the end of their financial year. IGNORE VAT.Pre‐adjustment trial balance of Central Perk Furniture Store for the year ended 31 March 2020.Fol. Debit (R) Credit (R)Statement of financial position sectionCapital B1 500 000.00Drawings B2 25 000.00Land and buildings B3 865 000.00Vehicles B4 220 987.00Equipment B5 156 760.00Accumulated depreciation: Equipment(1 April 2019)B6 54 320.00Accumulated Depreciation: Vehicles(1 April 2019)B7 22 580.00Bank B8 22 430.00Debtors Control B9 35 600.00Allowance for Credit Losses‐ 1 April 2019 B10 1 780.25Petty Cash B11 1 378.98Trading inventory (1 April 2019) B12 27 865.43Mortgage Loan B13 287 650.00Creditors Control B14 31 420.00SARS(UIF/SDL/PAYE) B15 23 290.6520 2020© The Independent Institute of Education (Pty) Ltd 2020Page 6 of 7Fol. Debit (R) Credit (R)Nominal accounts sectionSales N1 1 167 371.07Sales Returns N2 25 340.87Purchases N3 520…
On March 1, 2020, Zuhoos Muscat Company received RO 24,000 for services to be provided equally over 6 months period starting March. The necessary adjusting entry to be prepared on July 31, 2020 , will include:

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