Northern will be billed at the end of the meeting. c. Depreciation on the golf carts used
Question:
Northern will be billed at the end of the meeting.
c. Depreciation on the golf carts used to transport the guests’ luggage to and from their rooms is $13,000 for the year. West Beach records depreciation yearly.
d. At January 31, Friedrich Catering is owed $1,795 for food provided for guests through that date. This amount of food service expense is unrecorded.
e. An examination indicates that the cost of office supplies on hand at January 31, 2010 is $189. During the year, $698 of office supplies was purchased from Supply Depot. The cost of supplies purchased was debited to office supplies inventory. No office supplies were on hand on January 31, 2009.
Required:
. Prepare adjusting entries at January 31 for each of these items.
. By how much would net income be overstated or understated if the accountant failed to make the adjusting entries?
Step by Step Answer:
Cornerstones Of Financial Accounting Current Trends Update
ISBN: 9781111527952
1st Edition
Authors: Jay Rich , Jeff Jones, Maryanne Mowen , Don Hansen