Answered step by step
Verified Expert Solution
Question
1 Approved Answer
At October month-end, Velor Inc. gathered the information listed below for the preparation of adjusting entries. Indicate whether the required adjusting entry for em
At October month-end, Velor Inc. gathered the information listed below for the preparation of adjusting entries. Indicate whether the required adjusting entry for em (-), or has no effect (NE) on each of the components of the accounting equation. If a transaction causes a decrease in one component of the accounting equatic but in a different account, select (+/-). a) A review of the $42,000 unadjusted balance in the prepaid rent account shows a remaining balance of $39,750 at the end of the month. b) $500 of property taxes have accrued and are unrecorded. c) Consulting work performed but unrecorded at the end of the month totalled $7,250. d) A building Velor Inc. owns is rented out for $1,000 each month. The current month's rent has not been. received by month-end. e) $3,500 of advertising Velor Inc. placed in the local newspaper is unrecorded and unpaid. f) $2.850 of the advertising paid for in advance has been published by the newspaper. g) $10,000 of the rent paid in advance has expired. h) Of the $18,000 consulting fees Velor Inc. received in advance, $15,700 has not yet been eamed. 1) Interest of $260 has accrued on a note payable but is unrecorded. 1) A review of the $36,000 unadjusted balance in the prepaid insurance account shows a remaining balance of $33,500 at the end of the month. k) $250 of the insurance policy purchased in advance has expired. 1) A review of the $6,000 unadjusted balance in the supplies account shows a balance on hand at the end of the month of $5,450. m) $52,000 of the $54,000 rent paid to Velor Inc. in advance has not yet been earned. n) $1,000 of the rent paid in advance has expired. o) The monthly depreciation on the equipment is $440. ALE
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started