In January Mookie The Beagle Concierge purchased $300 of liability insurance to cover a 3 month period. So at the end of the accounting period on January 31, 1 month of rent had expired at $100.00. ($300/3 months = $100 per month). The balance is Prepaid Insurance Expense, an asset account with future benefit. Since Mookie The Beagle Concierge recorded the entire $300 as Insurance Expense, an adjusting entry is needed to bring accounts up to date at January 31. Question 2 Mookie The Beagle Concierge purchased $426 of supplies during January 2018. At the end of the accounting period on January 31, Mookie The Beagle Concierge still had $236 of unused supplies on hand. The $236 of Supplies is an asset with future benefit. Since Mookie The Beagle Concierge recorded the entire $426 as Supplies Expense, an adjusting entry is needed to bring accounts up to date at January 31. Question 3 In anticipation of carrying Mookie The Beagle Concierge branded Inventory, CK charged $432 for 6 months storage locker rental from Lynne's Space to Mookie The Beagle Concierge's VISA credit card on January 1, 2018. So at the end of the accounting period on January 31, Mookie The Beagle Concierge has used 1 month of rent at $72 ($432/6 months = $72 per month). The balance ($360) is a Prepaid Expense: Prepaid Rent, an asset account with future benefit. Since CK had not recorded anything related to the storage locker rental, an adjusting entry is needed to bring accounts up to date at January 31.
Questions 1
In January Mookie The Beagle Concierge purchased $300 of liability insurance to cover a 3 month period. So at the end of the accounting period on January 31, 1 month of rent had expired at $100.00. ($300/3 months = $100 per month). The balance is Prepaid Insurance Expense, an asset account with future benefit. Since Mookie The Beagle Concierge recorded the entire $300 as Insurance Expense, an
Question 2
Mookie The Beagle Concierge purchased $426 of supplies during January 2018. At the end of the accounting period on January 31, Mookie The Beagle Concierge still had $236 of unused supplies on hand. The $236 of Supplies is an asset with future benefit. Since Mookie The Beagle Concierge recorded the entire $426 as Supplies Expense, an adjusting entry is needed to bring accounts up to date at January 31.
Question 3
In anticipation of carrying Mookie The Beagle Concierge branded Inventory, CK charged $432 for 6 months storage locker rental from Lynne's Space to Mookie The Beagle Concierge's VISA credit card on January 1, 2018. So at the end of the accounting period on January 31, Mookie The Beagle Concierge has used 1 month of rent at $72 ($432/6 months = $72 per month). The balance ($360) is a Prepaid Expense: Prepaid Rent, an asset account with future benefit. Since CK had not recorded anything related to the storage locker rental, an adjusting entry is needed to bring accounts up to date at January 31.
Questions 4
On January 12, 2018 Julie prepaid $1,600 for pet care services to be provided each Friday for 8 weeks for her Yellow Lab, Honey. Mookie The Beagle Concierge recorded the entire $1,600 as Sales. At the end of the accounting period on January 31, 3 weeks (01/12, 01/19, 01/26) of the pet care services had been provided to Honey, so 5 weeks of services or $1,000 ($1,600/8 = $200 per week) had not been earned as of the end of January. Since $1,000 had not been earned, the $1,000 is a liability because Mookie The Beagle Concierge has an obligation to provide the pet care services or return the $1,000 to the customer. So an adjusting entry is needed to bring the accounts up to date at January 31.
Question 5
Interest on Mookie The Beagle COncierge's Loan Payable to CK has been incurred, but not recorded or paid. The interest that has been incurred is calculated as principal multiplied by the interest rate multiplied by the time period ($1,000 x 6% x 1/12 = $5.00). Interest Expense of $5.00 must be recorded as an accrued expense and Accounts Payable, a liability, recorded for the amount that Mookie the beagle concierge is obligated to pay later. so an adjusting entry is needed to bring accounts up to date at january 31.
Questions 6
during january mary dolan, a subcontractor, prodived pet care services to julie's honey for three fridays in janaury, totaling 24 hours at $10 per hour. ck overlooked recording this subcontractor expense since mary had not been paid for these services yet. so at january 31, an adjusting entry is needed to record subcontractor expense that will be paid later. in the future, ck is hoping that the qbo time tracking will assist in avoiding these types of oversights going forward.
Question 7
at january 31 mookie the beagle concierge has incurred $110 of accounting services for assistance with qbo. this amount has not been paid nor recorded by mookie the beagle concierge, so an adjusting entry is needed to record the expense incurred.
Question 8
so at the end of the accounting period on january 31. 1 month of rent had expired at $8.00. since mookie the beagle concierge had not recorded the transaction, the entire $8.00 should be recorded as renter insurance expense with an adjusting entry to bring accounts up to date at january 31.
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