Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1)Jassal Music Inc. is located in Edmonton, Alberta, and reports its nancial information using IFRS. You were recently hired as the company's chief accountant to

image text in transcribed
1)Jassal Music Inc. is located in Edmonton, Alberta, and reports its nancial information using IFRS. You were recently hired as the company's chief accountant to ll a longstanding vacancy. Your review of the accounting records for the year ended December 31, 20x4, has uncovered the following transactions: 1. Jassal renewed the commercial and business insurance policy in August 20x4 for the year commencing September 1, 20x4. The company recorded the $25,500 payment as a prepaid expense. 2. The company rents instruments to schools and has contracts with customers in the school rental program that run for the full academic year (September to June).Customers pay the yearly fee in advance for the instrument rentals. In September 20x4, the company received $80,000 cash and recorded it as rental income. 3. On January 1, 20x4, Jassal received an $18,000, 0% note receivable from Ryan Tower Inc., in exchange for a delivery vehicle Jassal no longer needed. Ryan Tower is repaying the note in three equal instalments of $6,000, with the rst payment due January 1, 20x5. The market rate of interest when the note was received was 5%per annu m. The sale of the vehicle was correctly recorded. 4. During the 20x4 scal year, Jassal sold a violin that usually retails for $1,650 from its inventory of new instruments. In exchange, Jassal received a computer system that normally sells for its fair value of $1,800. The cost of the violin was $1,500. The transaction has not yet been recorded Required: Prepare year-end adjusting entries for transactions 1 to 3 and the required entry for transaction 4

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ronald W Hilton

8th Edition

0073526924, 9780073526928

More Books

Students also viewed these Accounting questions

Question

Question 7 of 7

Answered: 1 week ago

Question

Wear as little as possible

Answered: 1 week ago

Question

Be relaxed at the hips

Answered: 1 week ago