Question
End-of-period adjustments Allied Architects adjusts its books each month and closes its books at the end of the year. The trial balance at January 31,
End-of-period adjustments Allied Architects adjusts its books each month and closes its books at the end of the year. The trial balance at January 31, 2010, before adjustments is as follows: The following information relates to month-end adjustments: (a) According to contracts, consulting fees received in advance that were earned in January total $13,500. (b) On November 1, 2009, the company paid in advance for 5 months' advertising in professional journals. (c) At January 31, supplies on hand amount to $2,250. (d) The equipment has an original estimated useful life of 4 years.
Questions
- Prepare the journal entries for the month-end adjustments.
- After the proper adjusting entries are made, what is the balance in the unearned consulting fees account at January 31?
- Compute the amount to be reported in the January income statement for the following:
- Advertising Expense
- Supplies Expense
- What is the book value of the equipment at January 3 after the proper adjusting entry is recorded?
- Prepare the adjusted trial balance and compute the amount of net income or loss to be shown in January income statement (The corporation is subject to income taxes of 25% of taxable income. )
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