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How Do the following adjustments go into a general journal A late sales invoice was received from the sales department for services performed by the
How Do the following adjustments go into a general journal
- A late sales invoice was received from the sales department for services performed by the owner, Jane Doe. The fees charged were $100 plus 13% HST and were paid on account.
- Supplies remaining in the storeroom are valued at $480.
- Six (6) months worth of insurance was prepaid on January 1st of this year.
- Employees are paid $4,000 every two weeks. The last pay day was January 24th.
- The car is two years old as of January 1st and is amortized using the declining balance method at a rate of 20%. (Hint: subtract the accumulated amortization in the trial balance from the original cost to get the amount you need to calculate the current year's amortization.)
- Equipment is amortized using the straight-line method. It is three years old and is expected to last for another seven years (useful life = 10 years). In seven years, it is expected to have a scrap value of $3,000.
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