Kazz Industries year-end is May 31. Based on an analysis of the unadjusted trial balance at May

Question:

Kazz Industries’ year-end is May 31. Based on an analysis of the unadjusted trial balance at May 31, 2020, the following information was available:

a. Machinery costing $77,500 was acquired on September 1 of this accounting period. It is estimated to have a useful life of six years. The machinery is estimated to have a $5,500 value at the end of its six-year life.

b. Accrued revenues at year-end totalled $24,300.

c. The Prepaid Insurance account showed a balance of $23,040. This was paid and takes effect on March 1 of this accounting period and represents a two-year policy.

d. Accrued salaries at year-end were $21,500.

e. One month of interest had accrued at a rate of 3.5% on the $144,000 note payable.

f. The annual depreciation on the office equipment was $8,100.

g. $6,480 worth of advertising was prepaid on January 1 of the current accounting period and debited to the Prepaid Advertising account. This covered four months of advertising beginning on the same date.

h. It was determined that $4,500 of completed work was included in the $9,200 Unearned Revenue account balance at year-end.

i. Interest income accrued at year-end totalled $570.

j. The Office Supplies account had a balance of $4,000 at the beginning of the accounting period. During the year, $29,500 of supplies were purchased and debited to the Office Supplies account. At year-end, a count of the supplies revealed that $28,400 had been used.


Required

Prepare adjusting journal entries for the year ended May 31, 2020, based on the above.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Fundamental Accounting Principles Volume I

ISBN: 978-1260305821

16th Canadian edition

Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann

Question Posted: