Journalize the adjusting entry needed at December31,2020, for each situation. Consider each fact separately. (Record debits first, then credits. Exclude explanations from any journal entries.) a. The business has interest expense of
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Regan Rentals company faced the following situations.
|
1.
|
Journalize the December31,2020, for each situation. Consider each fact separately. (Record debits first, then credits. Exclude explanations from any
|
|
a.
|
The business has interest expense of
$3,200
that it must pay early in
January
2021.
|
|
b.
|
Interest revenue of
$4,600
has been earned but not yet received. |
|
c.
|
On
July
1,
2020,
when the business collected
$12,000
rent in advance, it debited Cash and credited Unearned Rent Revenue. The tenant was paying for two years' rent. |
|
d.
|
Salary expense is
$6,300
per
day—Monday
through
Friday—and
the business pays employees each Friday. This year,
December
31 falls on a Thursday. |
|
e.
|
The unadjusted balance of the Supplies account is
$2,500.
The total cost of supplies on hand is $1,700. |
|
f.
|
Equipment was purchased on January 1 of this year at a cost of
$120,000.
The equipment's useful life is five years. There is no residual value. Record |
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- The following account balances were taking from the adjusted trial balance for laser messenger service, a daily service firm, for the fiscal year ended April 30th, 2019. Depreciation $8,850 Fees earned 684,000 Insurance expense 1,000 Miscellaneous expense 3,650 Rent expense 53,000 Salaries expense 339,500 Supplies expense 3,700 Utilities expense 40,100 Prepare and income statement.is a net loss has been incurred, enter that amount as a negative number using minus sign. Be sure to complete the statement heading.Madison Company performed $6,000 of CPA services (earned revenue) for a client but did not bill the client until the end of the accounting period. What adjusting entry must Madison Company make at the end of the accounting period? a. Dr. Unearned Service Revenue and Cr. Service Revenue b. Dr. Accounts Receivable and Cr. Unearned Service Revenue c. Dr. Accounts Receivable and Cr. Service Revenue d. Dr. Cash and Cr. Unearned Service Revenue6 What is the purpose of adjusting entries? Given the following situation, please prepare the adjusting journal entries for the end of the period. Please also prepare the T-Accounts. 6/12/18 – Company X paid $3,500 for cleaning supplies. 6/30/18 – Company X has $2,000 of cleaning supplies left. 6/1/18 – Company Y paid $2,400 for 12 months of insurance. 12/31/18 – Company Y needs to adjust the amount of insurance (both expense and amount remaining as a prepaid. 12/31/18 – Company Z realizes that it owes employees $3,500 in wages not yet paid or recorded. 8/1/18 – Student H moves into an apartment in South Side (despite all of the best advice from parents, teachers, and friends). Student H pays for the entire 12 months of rent in advance. The annual rent is $7,200. What are the journal entries that Student H and the landlord should record on 12/31/18?
- For each separate case below, follow the three-step process for adjusting the accrued revenue account at December 31. Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. Assume no other adjusting entries are made during the year. a. Accounts Receivable. At year-end, the L. Cole Company has completed services of $19,000 for a client, but the client has not yet been billed for those services. b. Interest Receivable. At year-end, the company has earned, but not yet recorded, $390 of interest earned from its investments in government bonds. c. Accounts Receivable. A painting company bills customers when jobs are complete. The work for one job has been completed, and the customer has been billed $1,300 but has not yet paid.Given the following situation, please prepare the adjusting journal entries for the end of the period. Please also prepare the T-Accounts. 6/12/18 – Company X paid $3,500 for cleaning supplies. 6/30/18 – Company X has $2,000 of cleaning supplies left. 6/1/18 – Company Y paid $2,400 for 12 months of insurance. 12/31/18 – Company Y needs to adjust the amount of insurance (both expense and amount remaining as a prepaid. 12/31/18 – Company Z realizes that it owes employees $3,500 in wages not yet paid or recorded. 8/1/18 – Student H moves into an apartment in South Side (despite all of the best advice from parents, teachers, and friends). Student H pays for the entire 12 months of rent in advance. The annual rent is $7,200. What are the journal entries that Student H and the landlord should record on 12/31/18?Show how the below transactions affect the financial position of the business as represented by A = E + L. You need to clearly indicate whether the element has increased or decreased and provide the relevant amount and account that would be affected.EG. The business pays R6 333 per month for the rental of some business premises. All rentals were paid in cash during the year. No. A = E + L Eg. -75996 Bank (6333 x 12) - 75996 Rent Expense Please use format of table above for the below transactionsThe following transactions occurred in the business during the year ended 31 December 2020: 1. The owner deposited R105 000 cash into the business’s bank account on 1 January 2020.2. The business bought R450 000 worth of inventory from various suppliers during the year. 80% of these purchases were on credit and the remaining 20% were paid for in cash.3. During the year the business paid R96 900 cash in operating costs. These costs related to goods and services that had all been…
- Bonsu is the owner of a retail business. He has employed an inexperienced book-keeper to maintain the accounting records. On 31st December 2020, the end of the business’s accounting year, the book-keeper extracted the following trial balance. Trial balance as at 31st December 2020 Debit (GHS) Credit (GHS) Sales 1,250,000 Purchases 700,000 Discount Allowed 18,300 Carriage Inwards 28,000 Carriage Outwards 31,200 Rent, rate & insurance 61,700 Heating & Lighting 38,000 Postage & stationery 4,200 Advertising…Consider the following independent situation at Dec. 31 Jounlrnalize the adjusting entry needed on Dec 31 for each situation. Use the label the journal entries ( record debits first, then credits. Select the explanation on the last line of the journal entry table. a) On Oct 1, a business collected $3600 rent in advance, debiting cash and crediting unearned revenue. The tenant was paying one year's rent in advance. On Dec 31, a business must account for the amount of rent it has earned b) salaries expense is $1000 perday Monday through Friday and the business pays employees each Friday. This year Dec 31 falls on a Thursday. c) the unadjusted balance of the office supplies account is $3500. Office supplies in hand Total $1700 d) equipment depreciation was $200 e) on July 1, when the business prepaid $1200 for a two year insurance policy.the business debited prepaid insurance and credited cashOn August 31, 2010, the following data were accumulated to assist the accountant in preparing the adjusting entries for Cobalt Realty: a. Fees accrued but unbilled at August 31 are $9,560. b. The supplies account balance on August 31 is $3,150. The supplies on hand at August 31 are $900. c. Wages accrued but not paid at August 31 are $1,200. d. The unearned rent account balance at August 31 is $9,375, representing the receipt of an advance payment on August 1 of three months’ rent from tenants. e. Depreciation of office equipment is $1,600.
- Cal Consulting initially records prepaid and unearned items in income statement accounts. Given this company’s accounting practices, which of the following applies to the preparation of adjusting entries at the end of its first accounting period? a) Unearned fees (on which cash was received in advance earlier in the period) are recorded with a debit to Consulting Fees Earned of $500 and a credit to Unearned Consulting Fees of $500. b) Unpaid salaries of $400 are recorded with a debit to Prepaid Salaries of $400 and a credit to Salaries Expense of $400. c) Office supplies purchased for the period were $1,000. The cost of unused office supplies of $650 is recorded with a debit to Supplies Expense of $650 and a credit to Office Supplies of $650. d) Earned but unbilled (and unrecorded) consulting fees for the period were $1,200, which are recorded with a debit to Unearned Consulting Fees of $1,200 and a credit to…On September 1, a company received an advance rental payment of $12,000, to cover six months rent on an office building. There was no beginning balance in the Unearned Rent account for the period. Based on the information provided, A. Make the December 31 adjusting journal entry to bring the balances to correct. B. Show the impact that these transactions had.