From the book financial accounting for undergraduates third edition problem P3-5B, The following information relates to the December 31 adjustments for Water Barrier, a firm providing waterproofing services for commercial and residential customers. The firmâs fiscal year ends December 31; no adjusting entries have been made during the year.
The firm paid a $3,000 premium for a three-year insurance policy, coverage to begin October 1. The premium payment was debited to Prepaid Insurance.
Weekly wages for a five-day work week total $1,250 payable on Fridays. December 31 is a Thursday.
Water Barrier received $4,800 in November for services to be performed during December through February of the following year. When received, this amount was credited to Unearned Service Fees. By December 31, one-third of this amount was earned.
Water Barrier receives a 5% commission from the manufacturer on sales of a waterproofing agent to Water Barrierâs customers. By December 31, Water Barrier had sales of $10,000 (during November and December) for which no commissions had been received or recorded.
During December, fuel oil costs of $650 were incurred to heat the firmâs buildings. Because the monthly bill from the oil company has not yet arrived, no entry has been made for this amount (fuel oil costs are charged to Utilities Expense).
The Supplies account has a balance of $17,500 on December 31. A count of supplies on December 31 indicates that $3,500 worth of supplies are still on hand.
On December 1, Water Barrier borrowed $10,000 from the bank, giving a note payable. Interest is not payable until the note is due near the end of the following January. However, the interest for December is $95.
Water Barrier rents parking spaces in its lot to firms in the office building next door. On December 1, Water Barrier received $8,000 as advance payments to cover parking privileges in the lot for December through March of the following year. When received, the $8,000 was credited to Unearned Parking Fees.
From the book financial accounting for undergraduates third edition problem P3-5B, The following information relates to the December 31 adjustments for Water Barrier, a firm providing waterproofing services for commercial and residential customers. The firmâs fiscal year ends December 31; no adjusting entries have been made during the year.
The firm paid a $3,000 premium for a three-year insurance policy, coverage to begin October 1. The premium payment was debited to Prepaid Insurance.
Weekly wages for a five-day work week total $1,250 payable on Fridays. December 31 is a Thursday.
Water Barrier received $4,800 in November for services to be performed during December through February of the following year. When received, this amount was credited to Unearned Service Fees. By December 31, one-third of this amount was earned.
Water Barrier receives a 5% commission from the manufacturer on sales of a waterproofing agent to Water Barrierâs customers. By December 31, Water Barrier had sales of $10,000 (during November and December) for which no commissions had been received or recorded.
During December, fuel oil costs of $650 were incurred to heat the firmâs buildings. Because the monthly bill from the oil company has not yet arrived, no entry has been made for this amount (fuel oil costs are charged to Utilities Expense).
The Supplies account has a balance of $17,500 on December 31. A count of supplies on December 31 indicates that $3,500 worth of supplies are still on hand.
On December 1, Water Barrier borrowed $10,000 from the bank, giving a note payable. Interest is not payable until the note is due near the end of the following January. However, the interest for December is $95.
Water Barrier rents parking spaces in its lot to firms in the office building next door. On December 1, Water Barrier received $8,000 as advance payments to cover parking privileges in the lot for December through March of the following year. When received, the $8,000 was credited to Unearned Parking Fees.
Related questions
#16 Adjusting Entries
Journalize the adjusting entry needed on December 31, end of thecurrent period for each of the independent cases. Assume for allthe different situations that prior adjusting entries were NOTcompleted.
On June 1, Brown Company received $24,000 cash for a one yearsubscription to its monthly magazine. The term of the subscriptionbegins on June 1. The company uses an account called unearnedsubscription Revenue. Make the appropriate adjusting entry onDecember 31.
Date | Account Name | Acct. Type | Debit | Credit |
| ||||
|
Clark Company pays its employees every Friday for a five-daywork week. The amount of weekly Payroll is $100,000. December 31 ofthe current year is a Thursday. Make the appropriate adjustingentry on December 31.
Date | Account Name | Acct. Type | Debit | Credit |
| ||||
|
On September 1 of the current year, Williams Company rented toanother company some excess space in one of its buildings. WilliamsCompany received $30,000 cash on September 1. The rental periodextends for eight months, starting on September 1.Williams Company credited the Unearned Rent revenue account uponreceipt of the rent paid in advance. Make the appropriate adjustingentry on December 31.
Date | Account Name | Acct. Type | Debit | Credit |
| ||||
|
At the beginning of the year, the company had $1000 in supplieson hand. During the year the company purchased $5,300 in supplies.At the end of the year, the company had $2,000 of supplies stillavailable. Make the appropriate adjusting entry on December 31.
Date | Account Name | Acct. Type | Debit | Credit |
| ||||
|
Interest was incurred for a loan (Note Payable) in the amount of$3,000. Make the appropriate adjusting entry on December 31.
Date | Account Name | Acct. Type | Debit | Credit |
| ||||
|
Interest was earned on a Note receivable in the amount of$2,000. Make the appropriate adjusting entry on December 31.
Date | Account Name | Acct. Type | Debit | Credit |
| ||||
|
