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How do I get the adjusting entries and what does the final income statement/balance sheet/statement of shareholders equity look like Adjusting Journal Entries; T-accounts. Fanatical
How do I get the adjusting entries and what does the final income statement/balance sheet/statement of shareholders equity look like
Adjusting Journal Entries; T-accounts. Fanatical Fashions, a department store, has the following unadjusted account balances as of December 31, 2018, the company's year-end: 12. Cash: $3,230,000 Accounts Receivable: $1,240,000 Prepaid Insurance: $252,000 Prepaid Rent: $480,000 . Buildings: $3,540.300 Accumulated Depreciation-Buildings: $360,000 .Accounts Payable: $980,000 Wages Payable: $420,000 Note Payable: $360,000 Common Stock: $1,000,000 Sales Revenue: $7,450,300 Wage Expense: $1,120,000 . Utilities Expense: $94,000 Insurance Expense: $120,000 Interest Expense: $234,000 Rent Expense: $260,000 . Depreciation Expense-Buildings: $0 At year-end, Fanatical Fashions makes necessary adjusting journal entries to properly record revenues and expenses for the year. The following information applies to the adjusting journal entries: . The prepaid insurance balance relates to a two-year insurance policy purchased in June that covers the . The prepaid rent balance relates to rent that was paid in January to cover the company's facilities for the period of July 1, 2018, to June 30, 2020. current year 0will be paid after year-end and have not yet been recorded. Fanatical purchased the buildings in the beginning of the year and depreciates on a yearly basis. It must record a full year of depreciation at the end of 2018. The buildings have no residual value, a 30-year estimated useful life, and will be depreciated on a straight-line basis Fanatical has not yet recorded interest expense for 2018 on the note payable in the amount of $16,000Step by Step Solution
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