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The following information is available for M&M Johnson Inc.: The December 31, 2020, supplies inventory balance is $85,000. A count of supplies reveals that the company actually_has $30,000 of supplies on hand. a. b. As of December 31, 2020, Johnson Inc. had not paid the rent for December. The monthly rent is $2,400. On December 20, 2020, Johnson collected $18,000 in customer advances for the subsequent performance of a service. Johnson recorded the $18,000 as unearned revenue, and as of December 31 two-thirds of the service had been performed. с. d. The total cost of Johnson's fixed assets is $500,000. Johnson estimates that the assets have a useful life of ten years with zero salvage value and uses the straight-line method of depreciation. e. Johnson borrowed $10,000 at an annual rate of 12 percent on July 1, 2020. The first interest payment will be made on January 1, 2021. f. Johnson placed several ads in local newspapers during December. On December 31, the company received a $28,000 bill for the ads, which was not recorded at the time the company placed the ads. On July 1, 2020, Johnson paid the premium for a one-year life insurance policy. The $350 cost of the premium was capitalized as an asset when paid. g. After creating an adjusting entry, what is the amount of Supplies Expense, depreciation expense, interest expense, and insurance expense?

The following information is available for M&M Johnson Inc.: The December 31, 2020, supplies inventory balance is $85,000. A count of supplies reveals that the company actually_has $30,000 of supplies on hand. a. b. As of December 31, 2020, Johnson Inc. had not paid the rent for December. The monthly rent is $2,400. On December 20, 2020, Johnson collected $18,000 in customer advances for the subsequent performance of a service. Johnson recorded the $18,000 as unearned revenue, and as of December 31 two-thirds of the service had been performed. с. d. The total cost of Johnson's fixed assets is $500,000. Johnson estimates that the assets have a useful life of ten years with zero salvage value and uses the straight-line method of depreciation. e. Johnson borrowed $10,000 at an annual rate of 12 percent on July 1, 2020. The first interest payment will be made on January 1, 2021. f. Johnson placed several ads in local newspapers during December. On December 31, the company received a $28,000 bill for the ads, which was not recorded at the time the company placed the ads. On July 1, 2020, Johnson paid the premium for a one-year life insurance policy. The $350 cost of the premium was capitalized as an asset when paid. g. After creating an adjusting entry, what is the amount of Supplies Expense, depreciation expense, interest expense, and insurance expense?

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter9: Current Liabilities And Contingent Obligations
Section: Chapter Questions
Problem 1MC: The balance in Ashwood Companys accounts payable account at December 31, 2019, was 1,200,000 before...
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The following information is available for M&M Johnson Inc.: The December 31, 2020, supplies inventory balance is $85,000. A count of supplies reveals that the company actually has $30,000 of supplies on hand. а. b. As of December 31, 2020, Johnson Inc. had not paid the rent for December. The monthly rent is $2,400. On December 20, 2020, Johnson collected $18,000 in customer advances for the subsequent performance of a service. Johnson recorded the $18,000 as unearned revenue, and as of December 31 two-thirds of the service had been performed. С. d. The total cost of Johnson's fixed assets is $500,000. Johnson estimates that the assets have a useful life of ten years with zero salvage value and uses the straight-line method of depreciation. Johnson borrowed $10,000 at an annual rate of 12 percent on July 1, 2020. The first interest payment will be made on January 1, 2021. е. f. Johnson placed several ads in local newspapers during December. On December 31, the company received a $28,000 bill for the ads, which was not recorded at the time the company placed the ads. On July 1, 2020, Johnson paid the premium for a one-year life insurance policy. The $350 cost of the premium was capitalized as an asset when paid. g. After creating an adjusting entry, what is the amount of Supplies Expense, depreciation expense, interest expense, and insurance expense?
Transcribed Image Text:The following information is available for M&M Johnson Inc.: The December 31, 2020, supplies inventory balance is $85,000. A count of supplies reveals that the company actually has $30,000 of supplies on hand. а. b. As of December 31, 2020, Johnson Inc. had not paid the rent for December. The monthly rent is $2,400. On December 20, 2020, Johnson collected $18,000 in customer advances for the subsequent performance of a service. Johnson recorded the $18,000 as unearned revenue, and as of December 31 two-thirds of the service had been performed. С. d. The total cost of Johnson's fixed assets is $500,000. Johnson estimates that the assets have a useful life of ten years with zero salvage value and uses the straight-line method of depreciation. Johnson borrowed $10,000 at an annual rate of 12 percent on July 1, 2020. The first interest payment will be made on January 1, 2021. е. f. Johnson placed several ads in local newspapers during December. On December 31, the company received a $28,000 bill for the ads, which was not recorded at the time the company placed the ads. On July 1, 2020, Johnson paid the premium for a one-year life insurance policy. The $350 cost of the premium was capitalized as an asset when paid. g. After creating an adjusting entry, what is the amount of Supplies Expense, depreciation expense, interest expense, and insurance expense?
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