Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

his is a 2-part question. Part 1) Journalize the adjusting entries below at year-end December 31, XXXX. Please share your supporting calculations for the adjusting

his is a 2-part question.

Part 1) Journalize the adjusting entries below at year-end December 31, XXXX. Please share your supporting calculations for the adjusting entries requiring computations.

(a) Accrued Service Revenue of $5,000

(b) The unadjusted balance of the Supplies account is $1,700. The total cost of supplies remaining is $900.

(c) Interest revenue of $500 has been earned but not yet received.

(d) Equipment was purchased at the beginning of the year for $35,000. The equipment's useful life is 5 years and the residual value is $7,000. Record the depreciation for this year.

(e) The weekly payroll is $30,000. Employees are owed for 2 days of a 5-day work week.

(f) Beginning unearned service revenue is $3,000, and ending unearned service revenue is $1,500. (30 points)

Part 2) Calculate the overall overstatement or understatement of net income if the above adjusting entries were not made. Please share your work. (6 points)

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

Step: 3

blur-text-image

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

Fundamental Financial Accounting Concepts

Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Mark Edmonds, Christopher Edmonds

10th Edition

126015940X, 978-1260159400

More Books

Students also viewed these Accounting questions

Question

1. Too reflect on self-management

Answered: 1 week ago

Question

Food supply

Answered: 1 week ago