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28 Sep 2019
C(a) The beginning balance of the supplies account was $245. During the month the company bought additional supplies in the amount of $735. At the end of the month a physical inventory showed $343 of unused supplies. (b) The company has a 12% note payable in the amount of $17,000 due in 6 months. The interest expense of $170 for the month has not been recorded. (c) The company has two employees. The manager is paid on the 15th of every month for work performed during the first half of the month and on the 1st of the following month for the work performed during the second half of the month. His monthly salary is $5,500. The other employee is paid $650 for each 5-day work week (Monday - Friday). The last day of the month fell on Thursday. (d) The unearned fees account shows a balance of $46,000. According to the manager 60% of that amount has been earned. (e) At the end of the month $5,700 of services had been performed but not yet billed.
Required: Prepare adjusting entries for the above transactions. Refer to the Chart of Accounts for exact wording of account titles.* The journal should have 10 rows.
Chart of accounts.
CHART OF ACCOUNTS.
General Ledger
ASSETS 11 Cash 12 Accounts Receivable 13 Supplies 14 Prepaid Rent 16 Office Equipment 17 Accumulated Depreciation
LIABILITIES 21 Accounts Payable 22 Notes Payable 23 Unearned Fees 24 Wages and Salary Payable 25 Interest Payable
EQUITY 31 Common Stock 32 Retained Earnings 33 Dividends
REVENUE 41 Fees Earned
EXPENSES 51 Advertising Expense 52 Insurance Expense 53 Interest Expense 54 Wages and Salary Expense 55 Supplies Expense 56 Utilities Expense 57 Depreciation Expense 58 Rent Expense 59 Miscellaneous Expense
C(a) | The beginning balance of the supplies account was $245. During the month the company bought additional supplies in the amount of $735. At the end of the month a physical inventory showed $343 of unused supplies. |
(b) | The company has a 12% note payable in the amount of $17,000 due in 6 months. The interest expense of $170 for the month has not been recorded. |
(c) | The company has two employees. The manager is paid on the 15th of every month for work performed during the first half of the month and on the 1st of the following month for the work performed during the second half of the month. His monthly salary is $5,500. The other employee is paid $650 for each 5-day work week (Monday - Friday). The last day of the month fell on Thursday. |
(d) | The unearned fees account shows a balance of $46,000. According to the manager 60% of that amount has been earned. |
(e) | At the end of the month $5,700 of services had been performed but not yet billed. |
Required: | |
Prepare adjusting entries for the above transactions. Refer to the Chart of Accounts for exact wording of account titles.* The journal should have 10 rows. |
Chart of accounts.
CHART OF ACCOUNTS.
General Ledger
ASSETS | |
11 | Cash |
12 | Accounts Receivable |
13 | Supplies |
14 | Prepaid Rent |
16 | Office Equipment |
17 | Accumulated Depreciation |
LIABILITIES | |
21 | Accounts Payable |
22 | Notes Payable |
23 | Unearned Fees |
24 | Wages and Salary Payable |
25 | Interest Payable |
EQUITY | |
31 | Common Stock |
32 | Retained Earnings |
33 | Dividends |
REVENUE | |
41 | Fees Earned |
EXPENSES | |
51 | Advertising Expense |
52 | Insurance Expense |
53 | Interest Expense |
54 | Wages and Salary Expense |
55 | Supplies Expense |
56 | Utilities Expense |
57 | Depreciation Expense |
58 | Rent Expense |
59 | Miscellaneous Expense |
Bunny GreenfelderLv2
28 Sep 2019