The following additional information is available: Prepaid insurance is for a 12-month insurance policy that was purchased on July 1st for $2,400. Inventory of office supplies is valued at $100 at December 31. The truck was purchased on April 1; it has an estimated useful life of 5 years and a salvage value of 1,000 a. b. С. Employees worked the last three days of December earning $500 each day. The pay period for this is on Jan 5th. Unearned rent represents a payment for 3 months rent. The payment was received on December 1st. Income taxes expense for the year is $5,000. The amount in income tax expense is what the company has paid during the year. Full tax payment is due next year. d. e. f. Required: Prepare closing entries including general ledger account numbers and descriptions. Use 360 for the Income Summary account and 340 for Retained Earnings. Prepare a post-closing trial balance.

The following additional information is available: Prepaid insurance is for a 12-month insurance policy that was purchased on July 1st for $2,400. Inventory of office supplies is valued at $100 at December 31. The truck was purchased on April 1; it has an estimated useful life of 5 years and a salvage value of 1,000 a. b. С. Employees worked the last three days of December earning $500 each day. The pay period for this is on Jan 5th. Unearned rent represents a payment for 3 months rent. The payment was received on December 1st. Income taxes expense for the year is $5,000. The amount in income tax expense is what the company has paid during the year. Full tax payment is due next year. d. e. f. Required: Prepare closing entries including general ledger account numbers and descriptions. Use 360 for the Income Summary account and 340 for Retained Earnings. Prepare a post-closing trial balance.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 5PB: Review the following transactions and prepare any necessary journal entries. A. On January 5, Bunnet...

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