Question
All of the current year's entries for Zimmerman Company have been made, except the following adjusting entries. The company's annual accounting year ends on December
All of the current year's entries for Zimmerman Company have been made, except the following adjusting entries. The company's annual accounting year ends on December 31. a. On September 1 of the current year, Zimmerman collected six months' rent of $8,400 on storage space. b. Depreciation of $2,500 must be recognized on a service truck purchased in July of the current year at a cost of $15,000. c. On November 1 of the current year, Zimmerman paid a one-year premium for property insurance, $9,000, for coverage starting on that date. d. The company earned service revenue of $4,000 on a special job that was completed December 29 of the current year. Collection will be made during January of the next year. e. Salary expense is $800 per day-Monday through Friday-and the business pays employees each Friday. This year, December 31 falls on a Wednesday. f. The supplies used at Dec.31 is $3,100. g. Income before income tax, $50,000. Income tax rate is 20%. Required: Prepare adjusting entries for these transactions at December 31, 20X7, for each situation. Consider each fact separately. Omit the explanation. Solution
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