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Ballad Company's annual accounting year ends on June 30. It is June 30, 2020, and all the 2020 entries except the following adjusting journal
Ballad Company's annual accounting year ends on June 30. It is June 30, 2020, and all the 2020 entries except the following adjusting journal entries have been made. Required: Prepare the adjusting journal entries that are required on June 30, 2020. a. On March 31, 2020, Ballad paid a six-month premium for property insurance in the amount of $6,000 for insurance coverage starting on that date. Cash was credited an and prepaid insurance was debited for this amount. b. On June 1, 2020, Ballad collected two months' maintenance revenue of $550. At that date, Ballad debited cash and credited deferred maintenance revenue for $550. One half of it has now been earned but not yet recorded c. Depreciation must be recognized on a service truck that was purchased on December 1, 2019. Annual depreciation is calculated to be $3,600. I d. Cash of $4,200 was collected on May 1, 2020, for services to be rendered evenly over the next year, beginning on May 1. Deferred Service Revenue was credited when the cash was received. Some of it has now been earned but not yet recorded. e. On June 30, 2020, the company completed the work on a contract for an out-of- province company for $8,500 payable by the customer within 30 days. No cash has been collected and no journal entry has been made for this transaction.
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