A review of the ledger of Chance Corporation at its year end, July 31, 2018, produces the following unadjusted data for the preparation of annual adjusting entries: 1. Prepaid Insurance, July 31, 2018, unadjusted balance, $9,440: The company purchased an insurance policy on December 1, 2016, with a two-year term, which expires November 30, 2018. 2. Buildings, July 31, 2016, unadjusted balance, $275,400: The company owns a building purchased on September 1, 2014, for $275,400, with an estimated 30-year useful life. The company uses straight-line depreciation. 3. Unearned Revenue, July 31, 2018, unadjusted balance, S42,500: The selling price of a digital magazine subscription is $60 for 24 monthly issues delivered over a two-year period. The company had sold 1,000 subscriptions on January 1, 2017, during a special promotion. 4. Salaries Payable, July 31, 2018, unadjusted balance, SD: There are 9 salaried employees. Salaries are paid every Monday for the previous five-day workweek (Monday to Friday). 7 employees receive a salary of $560 cach per week, and 2 employees earn $600 each per week. July 31 is a Tuesday. (al) How much insurance expires per month for the building? (a3) What was the original purchase price of the policy on December 1, 2016? Original purchase price of the policy (24) How much should the adjusted balance in the Prepaid Insurance account be at July 31, 2018? Adjusted balance in the Prepaid Insurance account (61) How much is annual depreciation expense for the building? Annual depreciation expense (62) Calculate the unadjusted balance in the Accumulated Depreciation-Buildings account as at July 31, 2018 Unadjusted balance in the Accumulated Depreciation-Buildings account (63) How much should the adjusted balance in the Accumulated Depreciation-Buildings account be at July 31, 20187 Adjusted balance in the Accumulated Depreciation-Buildings account el (c1) How much is earned by the company per month for the magazine subscriptions? Revenues (3) How much should the adjusted balance in the Unearned Revenue account be at July 31, 2018? Adjusted balance in the Unearned Revenue account + (d1) How much selary was paid on the last payday, Monday, July 30? Salary s (42) How much, if any, salary is owed to the employees on July 31? Salary s (d3) How much salary will be paid on the next payday, Monday, August 6? Salary (e) Prepare the adjusting journal entries required for each of the above faur items at July 31, 2018. (Hint: Use the account Subscription Revenue for item (C).) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round all amounts to the nearest dollar. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Debit Credit No. Date Account Titles and Explanation 1. July 31 2. July 31 3. July 31 4. July 31
