Question
Answer in correct format with columns and rows. only answer if you can solve correctly. Question 2. (25 marks) Shock Inc. has a December 31
Answer in correct format with columns and rows. only answer if you can solve correctly.
Question 2. (25 marks)
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. Information needed to prepare adjusting journal entries is below:
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Shock 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.
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We earned interest of $90 on an overdue account. It has not yet been recorded.
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During November, we collected $12,000 from a customer before providing services. At year end, $9,000 of this has been earned.
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Shock incurs salary expense of $700 per day, Monday to Friday, and pays employees every Friday. December 31 is on a Wednesday.
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On January 1, the Supplies ledger account has a debit balance of $1,100. Throughout the year, we purchased $2,000 of supplies. A count of supplies indicated that we have $800 of supplies on hand.
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Depreciation expense for the year is $12,000.
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On June 1, we prepaid a one-year rental fee of $36,000 for an office building and moved in the same day.
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On March 31, we purchased a one-year insurance policy for $2,700.
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We 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.
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Services provided to customers for $4,500 are uncollected and unrecorded.
Instructions
Prepare the required December 31 adjusting journal entries. Use a Word table for your entries as specified in the Assignment 1 example journal entries. In the date column, please label your entries 1 through 10. You are not required to provide an explanation line. Please leave one empty row between entries.
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