Adjusting Entries The information presented below is for MedQuest Pharmacy, Inc. a. Salaries for the period December

Question:

Adjusting Entries The information presented below is for MedQuest Pharmacy, Inc.

a. Salaries for the period December 26, 2009, through December 31, 2009, amounted to

$17,840 and have not been recorded or paid. (Ignore payroll taxes.)

b. Interest of $5,225 is payable for three months on an 11%, $190,000 loan and has not been recorded.

c. Rent of $36,000 was paid for six months in advance on December 1 and debited to Prepaid Rent.

d. Rent of $76,000 was credited to an unearned revenue account when received. Of this amount, $42,100 is still unearned at year-end.

e. The expired portion of an insurance policy is $2,400. Prepaid Insurance was originally debited.

f. Interest revenue of $400 from a $4,000 note has been earned but not collected or recorded.

Required:

Prepare the adjusting entries that should be made on December 31, 2009. (Omit explanations.)

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Accounting Concepts And Applications

ISBN: 9780324376159

10th Edition

Authors: W. Steve Albrecht, James D. Stice, Earl K. Stice, Monte R. Swain

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