On December 31, the end of the year, the accountant for Fidelity Magazine was called away suddenly
Question:
On December 31, the end of the year, the accountant for Fidelity Magazine was called away suddenly because of an emergency. However, before leaving, the accountant jotted down a few notes pertaining to the adjustments.
Record the necessary adjusting entries.
a. Subscriptions received in advance amounting to $136,400 were recorded as Unearned Subscriptions. At the end of the year, $90,200 has been earned.
b. Depreciation of equipment for the year is $18,600.
c. The amount of expired insurance for the year is $916.
d. The balance of Prepaid Rent is $2,800, representing four months’ rent. Three months’ rent has now expired.
e. Three days’ salaries will be unpaid at the end of the year; total weekly (five days’) salaries are $3,600.
Step by Step Answer:
College Accounting Chapters 1-26
ISBN: 9780395796993
6th Edition
Authors: Douglas J. McQuaig, Patricia A. Bille