Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Adjusting Accounts for Financial Statements Co. follows the practice of recording prepaid expenses and unearned revenues in accounts. The compan annual accounting period ends on

image text in transcribed
Adjusting Accounts for Financial Statements Co. follows the practice of recording prepaid expenses and unearned revenues in accounts. The compan annual accounting period ends on December 31.2015. The following company tion concerns the adjusting entries to be recorded as of that date. 2015, the a. The Office Supplies account started the year with a $4,000 balance. During inventory added to the Office Supplies account. The Problem 3-2A Preparing adjusting and purchased supplies for S13A00, which was $2,554. supplies available at December 31, 2015, totaled provided the following facts. of the company's insurance pol An analysis Coverage Date of Purchase 4400 April 2014 The total premium for each policy was pai d in full (for all months) at the purchase date, and the Prepaid Insurance account was for the full cost. (Year-end adjusting entries for Prepaid insurance were properly recorded in all prior years. in salaries eac working day. They are paid c. The company has 15 total of SI960 on the previous Friday. Assume that ork in the five-day workweek ending each Monday for their wo and all 15 employees worked the first two days of that week. Because a Tuesday, Years Day isa paid holiday, they will be paid salaries for five full days on Monday. January 6.2016. New d. The company purchased a building on January 1, 2015. It cost s 60,000 and is expected to have a s5.000 salvage value at the end of its predicted 3-year life. Annual depreciation is S30500 e. since the company is not large enough to occupy the entire building it owns it rented space to a tenant at $3.000 per month, starting on November l 2015. The rent was paid on time on November i and the amount received was credited to the Rent Earned accou However, the tenant has not paid the December rent. The company has worked out an agreement with the tenant, who has promised to pay both December and January rent in full on January 15. The tenant has agreed not to fall behind again. f. On November 1 the company rented space to another tenant for S2.800 per month. The tenant paid five months' rent in advance on that date. The payment was recorded with a credit to the Unearned Rent account. Use the information to prepare adjusting entries as of December 31, 2015 2. Prepare journal entries to record the first subsequent cash transaction in 2016 for parts c and e

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

Health And Safety Environment And Quality Audits A Risk Based Approach

Authors: Stephen Asbury

4th Edition

1032427574, 978-1032427577

More Books

Students also viewed these Accounting questions

Question

Solve the following 1,4 3 2TT 5x- 1+ (15 x) dx 5X

Answered: 1 week ago