Journalize the required adjusting entries for the year ended December 31 for Mallory Dance Studio. Begin on
Question:
Journalize the required adjusting entries for the year ended December 31 for Mallory Dance Studio. Begin on journal page 42.
a. On June 1 of this year, $600 was paid for a one-year insurance policy.
b. On October 1 of this year, $160 was paid for four months of advertising.
c. As of December 31, the balance of the Unearned Membership Fees account is $12,400. Of this amount, $8,200 has now been earned.
d. Equipment purchased on April 1 of this year for $3,400 is expected to have a useful life of five years and will have a trade-in value of $400. All the other equipment has been fully depreciated. The straight-line method is used.
e. As of December 31, two days’ wages of $240 per day had accrued.
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Step by Step Answer:
College Accounting Chapters 1-26
ISBN: 9780395796993
6th Edition
Authors: Douglas J. McQuaig, Patricia A. Bille