Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Help Save SER 1 1 Cactus Company's annual accounting year ends on June 30. Assuntis June 30, and all of the entries except the following

image text in transcribed
Help Save SER 1 1 Cactus Company's annual accounting year ends on June 30. Assuntis June 30, and all of the entries except the following adjusting joumal entries have been made! 2 pon 0049 a The company earned service revenue of $3,400 on a special job that was completed June 29. Collection will be made during fly no entry has been recorded On March 31 Cactus pada six month premium for property insurance in the amount of $4.600 for coverage starting on that date Cash was credited and prepaid insurance was debited for this amount cm June 30, wages of $2,300 were earned by employees but not yet paid. The employees will be paid on the next yoldate which is July 15 On June 1 Cactus collected two months revenue of $990. At that date, Cactus debited Cash and checked Deferred Revenue for $590. One half of it has now been earned but not yet recorded e Depreciation of $2.900 must be recognized on equipment purchased on July 1 of the previous year Cash of $5,880 was collected on May 1 for services to be rendered evenly over the next year beginning on May t Deferred Revenue was credited when the cash was received. Two months of this performance obligation we now boon fullied but not yet recorded The company owes interest of $740 on a bank loan token out on February. The interest will be paid when the foon is tepad next year on January 31 h The income after all odjustments except income taves was $34.000. The company federal income tax rate : 201 Required: Indicate the accounting equation effects amount and direction of each adjusting journal entry Provide an appropriate account came for any revenue and expense effects (Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign) Transaction Asset Limbi Stockholders

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Study Guide Working Papers For College Accounting, Chapters 1-9

Authors: James A. Heintz, Robert W. Parry

23rd Edition

0357474740, 9780357474747

More Books

Students also viewed these Accounting questions

Question

Did you provide headings that offer structure to the information?

Answered: 1 week ago