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A rigorous individual analysis of accounts receivable as of November 30, 20X6 determined that a single account, amounting to $ 3,200, does not appear to
A rigorous individual analysis of accounts receivable as of November 30, 20X6 determined that a single account, amounting to $ 3,200, does not appear to be collectible.
The balance of the Office supplies account before adjustments is the same as on November 30, 20X5. During the year, the company purchased some for $ 3,700. The original cost of unused supplies enumerated on November 30, 20X6 is $ 2,400.
On August 31, 20X5, a new 18-month liability insurance policy came into effect. The premium of $ 4,950 was paid in full when the policy took effect. The company has no other insurance.
The building has belonged to the company since 20X2. It is depreciated using the declining balance method at the rate of 4%.
All the furniture was acquired on June 1, 20X6. Furniture must be depreciated using the straight-line method. The lifespan of the furniture is 15 years while its useful lifespan is 10 years. The residual value of the furniture is $ 6,000 while its salvage value is zero.
On January 1, 20X6, the company contracted a debt of $ 85,000 repayable in full in 4 years. The bill to be paid bears interest at the annual rate of 8%. Interest is payable on the anniversary date of the debt.
The wages payable were $ 2,860 as of November 30, 20X6. Disregard payroll taxes.
On November 27, 20X6, the company agreed to repair kitchen equipment for the Malbouffe company for an amount of $ 3,500 payable on December 15, 20X6. No entries have been recorded for this contract. The company began construction on November 28 and worked tirelessly until December 7 inclusive. At that date, the kitchen equipment of the Malbouffe company was functional and no additional work was carried out.
Make the adjustment entries required by November 30, 20X6 in the general journal. Give all the explanations and provide all the necessary calculations.
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