The company from last week has prepared all of the necessary entries and now has a trial balance that balances. Before the final year-end financial statements are prepared, adjusting entries are needed. The following information is available regarding adjusting entries: Assume a December 31 year-end 1. The company estimates that 5% of accounts receivable will become uncollectible. 2. A count of the supplies shows that only $200 of supplies remains as of the end of the year. 3. The company purchased the insurance policy on April 1. It was a two-year policy. 4. The company estimates that the equipment purchased on January 1 will last ten years The company uses straight line depreciation with no estimated salvage
The company from last week has prepared all of the necessary entries and now has a trial balance that balances. Before the final year-end financial statements are prepared, adjusting entries are needed. The following information is available regarding adjusting entries: Assume a December 31 year-end 1. The company estimates that 5% of accounts receivable will become uncollectible. 2. A count of the supplies shows that only $200 of supplies remains as of the end of the year. 3. The company purchased the insurance policy on April 1. It was a two-year policy. 4. The company estimates that the equipment purchased on January 1 will last ten years The company uses straight line depreciation with no estimated salvage
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter22: End-of-fiscal-period Work For A Corporation
Section: Chapter Questions
Problem 1AP
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I need help with:
· Entering adjustments on the spreadsheet provided.
· Using the new and adjusted totals, calculate the totals on the financial statements in the spaces provided.
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