Question
Below is the unadjusted trial balance for Franklin Services Limited (FSL) as at its December 31, 2017 fiscal year end Franklin Services Limited (FSL) Unadjusted
Below is the unadjusted trial balance for Franklin Services Limited (FSL) as at its December 31, 2017 fiscal year end
Franklin Services Limited (FSL) Unadjusted Trial Balance December 31, 2017 | |||
Debit | Credit | ||
Cash | $35,980 | ||
Accounts Receivable | 117,000 | ||
Allowance for Doubtful Accounts | 4,000 | ||
FV-OCI Investments | 329,600 | ||
Equipment | 109,000 | ||
Accumulated Depreciation Equipment | $10,900 | ||
Unearned Revenue | 4,900 | ||
Note Payable | 79,000 | ||
Common Shares | 158,500 | ||
Retained Earnings | 86,200 | ||
Service Revenue | 1,707,968 | ||
Salaries and Wages Expense | 1,416,000 | ||
Insurance Expense | 11,568 | ||
Interest Expense | 6,320 | ||
Supplies Expense | 18,000 |
|
|
Total | $2,029,468 | $2,029,468 |
Additional information regarding fiscal year end adjusting entries which have not yet been posted is as follows
(a) | The company paid $11,568 for a 24 month insurance policy effective April 1, 2017. | |
(b) | FSL estimates that $21,000 of its accounts receivable as at year end will be uncollectible. | |
(c) | Interest on the note payable is charged at 12% per year. The note was issued on March 1, 2017 and the last interest payment was on October 31, 2017. | |
(d) | FSL is depreciating its equipment using the straight-line method. It is estimated that the useful life of the equipment is 5 years. The equipment was purchased on July 1, 2016. Depreciation expense has yet to be recorded for 2017. | |
(e) | On December 31, FSL paid the local newspaper for advertising for the first three months of 2018. The newspaper charges $320 per month. This transaction has not yet been recorded. | |
(f) |
| Acquired $18,000 of supplies for cash. $2,000 remained on hand at the end of the year. |
(g) |
| FV-OCI investments cost $280,000 and have a fair value of $350,000 at year end. |
Required:
Prepare all adjusting journal entries related to the information above.
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