Question
Cash A/R Supplies Prepaid rent Furniture Accumulated depreciation (furniture) A/P Unearned service revenue Capital Withdrawals Service revenue Depreciation expense Salary expense Rent expense Supplies
Cash A/R Supplies Prepaid rent Furniture Accumulated depreciation (furniture) A/P Unearned service revenue Capital Withdrawals Service revenue Depreciation expense Salary expense Rent expense Supplies expense Total Johnson Travel Trial Balance December 31, 2005 1300 6600 2300 1600 36000 4800 4500 600 26000 29000 106000 2300 39900 20000 2900 141900 141900 a) Depreciation on furniture for the month. The estimated useful life of the furniture is 4 years. b) On December 1, the business moved into a new office and paid the first 5 months' rent as advance. Prepaid rent expired during the month. c) Service Revenue of $ 300 were earned during the month from the services performed for clients who had paid in advance. d) The salary expense is $235 per day- and the business pays employees every Friday(weekly payroll is from Monday to Friday). This year December 31 falls on a Monday. e) Supplies on hand at Dec 31 $1600 1) What adjusting entry will Jonson make on this transaction? a) Depreciation on furniture for the month. The estimated useful life of the furniture is 4 years.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started