Log in
Accounting
1
answer
0
watching
355
views

Required Each of the following independent events requires ayear-end adjusting entry. Show how each event and its relatedadjusting entry affect the accounting equation. Assume a December31 closing date. The first event is recorded as an example. (Do notround intermediate calculations. Enter any decreases to accountbalances with a minus sign.) a. Paid $6,300 cash in advance onApril 1 for a one-year insurance policy. b. Purchased $1,750 ofsupplies on account. At year’s end, $130 of supplies remained onhand. c. Paid $6,300 cash in advance on March 1 for a one-yearlease on office space. d. Received an $15,300 cash advance for acontract to provide services in the future. The contract required aone-year commitment starting September 1.

Watch
1
answer
0
watching
355
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Deanna Hettinger
Deanna HettingerLv2
28 Sep 2019

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share

Related questions

33. During Year 1, JR Company completed the transactions listedbelow. JR's fiscal year ends on December 31. Prepare journalentries to record each of the transactions. Note that the adjustingentries required on December 31 will be prepared in the followingequation (so don't include the end-of-year adjusting entries here).20 points

A. On January 1, owners invested $10,000 in the business inexchange for 10,000 shares of common stock with a par value of$0.01 per share.

B. On April 1, the company purchased equipment for $12,000. Theypaid half in cash and agreed to pay the rest in one year.

C. On July, the company received a loan of $20,000, due in 1year, with an annual interest rate of 10%.

D. On October 20, a customer made an advance deposit of $1,500for services to be provided later

E. On November 1, the company paid $3,000 for a 3 year insurancepolicy

34. Using the necessary information from the prior question,prepare the adjusting entries for JR company required on December31, Year 1. 20 points

F. The company uses the straight-line depreciation method. Itestimated that the equipment in transaction B will have a salvagevalue of $1,000 and a useful life of 5 years. With respect toequipment, provide the adjusting entry required at the end of Year1.

G. With respect to the loan in transaction C, provide theadjusting entry required at the end of Year 1.

H. Services worth $500 have been provided to the customer intransaction D. provide the adjusting entry required at the end ofYear 1.

I. With respect to the insurance policy in transaction E,provide the adjusting entry required at the end of Year 1.

Part 1 (20 points) For Game Outlet, all regular transactions for the month of February have already recorded and posted; they are reflected in the attached general ledger detail (T-accounts) and unadjusted trial balance as of 2/28/ 2017.

One February month-end adjusting journal entry (A as below) is provided to you as an example.

A. On Jan.2, Game Outlet the rent on its building. The rent is $7,200 per year and must be prepaid on the first day of each year. The following is the journal entry that was made on that day:

1/2/2017 A­ Prepaid Rent 7,200

¯ Cash 7,200

Pay 1 year’s rent in advance

Related to this prepaid rent, one February month-end adjusting journal entry has already been prepared, posted to the general ledger (T-accounts), and entered onto the trial balance worksheet.

2/28/17 OE¯ Rent Expense 600

A¯ Prepaid Rent 600

Incurred 1 month of rent expense against prepaid rent account

REQUIRED: Determine whether or not an adjusting entry is necessary in February for each event below (B thru F). Use the information given to prepare any necessary month-end adjusting journal entry, in proper form (include A¯, L­, etc.)

B. On Jan. 2, 2017, Game Outlet purchased $13,000 of equipment, paying cash. The equipment has an expected useful life of 10 years and will be worth $1,000 at the end of 10 years. Following is the journal entry that was made on that day:

1/2/2017 A­ Property, Plant & Equipment 13,000

¯ Cash 13,000

Purchased equipment (10 yr life, $1000 salvage value)

As of the end of February, Game Outlet had used another month of its equipment’s useful life (assume straight-line depreciation). If an adjusting journal entry is needed as of 2/28/2017, write it below (in proper form). If no adjusting entry is needed, write “No Entry Needed.”

C. On Jan. 4, 2017, Game Outlet received a 3-year $240,000, 10% bank loan that pays interest semi-annually on June 30 and December 31 of each year. Following is the journal entry that was made on that day:

1/4/2017 A­ Cash 240,000

L­ Note Payable 240,000

Received sublet rent for 12 months from 1/15/2017 - 1/14/2018

As of the end of February, Game Outlet had incurred (but did not pay) interest expense on its loan. If an adjusting journal entry is needed as of 2/28/2017, write it below (in proper form). If no adjusting entry is needed, write “No Entry Needed.”

D. On Jan. 15, Game Outlet sublet a small portion of the store to Ashley who opens a costume shop for $150 per month. On that same day, Ashley pays a year’s rent in advance. Following is the journal entry that was made on that day:

1/15/2017 A­ Cash 1,800

L­ Unearned Rent Revenue 1,800

Received sublet rent for 12 months from 1/15/2017 - 1/14/2018

As of the end of February, Game Outlet had earned rent for February for the portion subleased to Ashley. If an adjusting journal entry is needed as of 2/28/2017, write it below (in proper form). If no adjusting entry is needed, write “No Entry Needed.”

E. As of the end of February, Game Outlet earned (but did not collect) interest on its month-end cash balance for the month of February, which is based on the annual interest rate of 10%. Assume entire CASH balance earns interest for 1 complete month in February. If an adjusting journal entry is needed as of 2/28/2017, write it below (in proper form). If no adjusting entry is needed, write “No Entry Needed.”

F. As of the end of February, Game Outlet incurred (but did not pay) income tax expense on its income before taxes and tax rate is 40%. If an adjusting journal entry is needed as of 2/28/2017, write it below (in proper form). If no adjusting entry is needed, write “No Entry Needed.”

please Help! :(

PART A: Nittany Lions Corporation adjusts itsaccounts only at year-end. The following information is availableas a source for preparing adjusting entries at December 31,2015.

On November 1, 2015, the company borrowed $120,000 for one yearat 9% interest and recorded a full yearof accrued interest expense. Interest is payable at maturity.

On October 1, 2015, Nittany Lions collected seven month’s rentin the amount of $10,500 in advance from the renter. At that date,the company debited Cash and credited Unearned Rent Revenue for$10,500.

The Supplies Inventory account had a $4,500 balance at thebeginning of the year (January 1, 2015). During the year, $6,000 ofsupplies were acquired, with the Supplies Expense account debitedat the time of purchase. The supplies count at the end of the year(December 31, 2015) showed $5,000 of supplies is still on hand.

The company owes 6-month property taxes of $1,500 on land ownedfor 2015. The taxes will be paid when they are billed in February2016. No related expense has been recorded.

Required:

For each of the above numbered items, prepare the necessaryadjusting journal entry. If no adjusting entry is required, explainwhy. Put the adjusting journal entries in the worksheet titled“Part A Answers to Part A.”

If Nittany Lions failed to prepare necessaryadjusting entries like you did in Requirement A, indicate theeffect that each item will have on the company’s financialstatements for the year ended December 31, 2015. UseO for overstated, U forunderstated, and NE for no effect. Organize youranswer in tabular form, using the column headings shown below andprovided in the worksheet titled “Part A Answers to Part B.”

Example 0: At year end, employees earned $4,000in wages which will be paid on the next payroll date in January2016. The adjusting journal entry will be:

Rent Expense (+E, -NI, -R/E,-SE) 4,000

Salaries Payable(+L) 4,000

Weekly leaderboard

Home
Homework Help 3,900,000
Accounting 580,000
Start filling in the gaps now
Log in