a b Merchandise Inventory , before adjustment, has a balance of $7,600 The newly counted inventory balance is $8,100 Unearned Seminar Fees has a balance of $6,100, representing prepayment by customers for five seminars to be conducted in June, July, and August 2019 Two seminars had been conducted by June 30, 2019 Prepaid Insurance has a balance of $12,600 for six months insurance paid in advance on May 1, 2019 Store equipment costing $4,350 was purchased on March 31, 2019 It has a salvage value of $510 and a useful life of four years Employees have earned $260 that has not been paid at June 30, 2019 The employer owes the following taxes on wages not paid at June 30, 2019 SUTA, $7 80 FUTA, $1 56 Medicare, $3 77 and social security, $16 12 Management estimates uncollectible accounts expense at 1 percent of sales This years sales were $2,100,000 Prepaid Rent has a balance of $6,750 for six months rent paid in advance on March 1, 2019 The Supplies account in the general ledger has a balance of $410 A count of supplies on hand at June 30, 2019, indicated $155 of supplies remain The company borrowed $6,500 from First Bank on June 1, 2019, and issued a four month note The note bears interest at 12 percent Required Based on the information above, record the adjusting journal entries that must be made for Sufen Consulting on June 30, 2019 The company has a June 30 fiscal year end Analyze After all adjusting entries have been journalized and posted, what is the balance of the Prepaid Rent account

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 24, 2024

a.-b. Merchandise Inventory , before adjustment, has a balance of $7,600. The newly counted inventory balance is $8,100. Unearned Seminar Fees has a balance of

a.-b. Merchandise Inventory, before adjustment, has a balance of $7,600. The newly counted inventory balance is $8,100.

Unearned Seminar Fees has a balance of $6,100, representing prepayment by customers for five seminars to be conducted in June, July, and August 2019. Two seminars had been conducted by June 30, 2019.
Prepaid Insurance has a balance of $12,600 for six months insurance paid in advance on May 1, 2019.
Store equipment costing $4,350 was purchased on March 31, 2019. It has a salvage value of $510 and a useful life of four years.
Employees have earned $260 that has not been paid at June 30, 2019.
The employer owes the following taxes on wages not paid at June 30, 2019: SUTA, $7.80; FUTA, $1.56; Medicare, $3.77; and social security, $16.12.
Management estimates uncollectible accounts expense at 1 percent of sales. This years sales were $2,100,000.
Prepaid Rent has a balance of $6,750 for six months rent paid in advance on March 1, 2019.
The Supplies account in the general ledger has a balance of $410. A count of supplies on hand at June 30, 2019, indicated $155 of supplies remain.
The company borrowed $6,500 from First Bank on June 1, 2019, and issued a four-month note. The note bears interest at 12 percent.

Required: Based on the information above, record the adjusting journal entries that must be made for Sufen Consulting on June 30, 2019. The company has a June 30 fiscal year-end. Analyze: After all adjusting entries have been journalized and posted, what is the balance of the Prepaid Rent account?