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Ans. template down below. Shock Inc. has a December 31 year end and prepares adjusting journal entries annually. All journal entries except for the year-end
Ans. template down below.
Shock Inc. has a December 31 year end and prepares adjusting journal entries annually. All journal entries except for the year-end adjustments have already been correctly recorded. The following information is provided to prepare adjusting journal entries: a. Shock Inc. signed a 6-month note payable for $40,000 on September 30 of the current year. The interest rate is 8%, and both principle and interest are due at maturity. b. The company earned interest of $90 on an overdue account. It has not yet been recorded. c. During November, the company collected $12,000 from a customer before providing services. At year end, $9,000 of this has been earned. d. The company incurs salary expense of $700 per day, Monday to Friday, and pays employees every Friday. December 31 is on a Wednesday. e. On January 1 , the supplies ledger account has a debit balance of $1,100. Throughout the year, the company purchased \$2,000 of supplies. A count of supplies indicated $800 of supplies on hand. f. Depreciation expense for the year is $12,000. g. On June 1 , the company prepaid a 1 -year rental fee of $36,000 for an office building and moved in the same day. h. On March 31, the company purchased a 1-year insurance policy for $2,700. i. The company received a bill of $640 from the City of Kamloops for utilities services from September 1 to December 31. The bill is due on January 31 and has not yet been recorded. j. Services provided to customers for $4,500 are uncollected and unrecorded. Required Prepare the required December 31 adjusting journal entries, in the date column, use the letters provided to organize your entries. Please leave one empty row between each journal entry. Question 1 (25 marks) Journal Entries
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