Question
I JUST NEED THE NAMES OF THE ADJUSTING ENTRY ACCOUNTS FOR A) THROUGH I). I don't need the number entries. I attached the balance sheet
I JUST NEED THE NAMES OF THE ADJUSTING ENTRY ACCOUNTS FOR A) THROUGH I). I don't need the number entries. I attached the balance sheet in case you need it for reference
Problem -
Your required tasks are as follows: On the designated worksheet, prepare in journal entry form the adjusting journal entries for the following items. Letter entries to correspond to the below information and present them in alphabetical order. (Round all numbers to the nearest dollar)
On June 1, 2016 B&B paid Lorre Advertising $48,000 for two years of advertising services. Equal services are provided in year 1 and year 2 of the contract.
B&B needed some additional storage space so on September 1, 2016 they rented a unit for an annual rate of $10,200. The entire amount was expensed when paid.
$4,250 of store supplies were purchased during the year and the asset Store Supplies was increased. $2,150 of these supplies were used during the year.
$6,500 of office supplies were purchased during the year and were immediately expensed. A count of the office supplies on hand December 31, 2016, indicates a balance of $1,500.
On October 1, 2016, B&B issued a 9-month note receivable to Greenstreet & Co. at an annual interest rate of 4%. Principal and interest will be paid at the end of the 9-months. The note was recorded in Notes Receivable and is the only note outstanding.
Sales salaries of $6,200 and office salaries of $4,800 were earned and remained unpaid at 12/31/16.
On May 1, 2016, B&B rented a portion of one store to Paul Henreid Co. The contract was for 10 months and B&B required the 10 months of cash upfront on May 1. The rent is being earned equally over the next 10 months. When cash was received, unearned rent was appropriately recorded.
On November 1, 2016, B&B collected $18,000 for consulting services to be performed from November 1, 2016 to February 28, 2017. The company credited the revenue account when the cash was received.
Based on past experience, B&B calculates bad debt expense at 1.5% of net sales for the year.
Refer to balance sheet:
Bogie and Bacall Company | ||||||
End of Period Worksheet | ||||||
For the Year Ended December 31, 2016 | ||||||
Unadjusted | Adjusted | |||||
Account Title | Trial Balance | Adjustments | Trial Balance | |||
DR | CR | DR | CR | DR | CR | |
Cash | 49,800 | - | ||||
Accounts Receivable | 77,450 | - | ||||
Allowance for Doubtful Accounts | 2,000 | |||||
Interest Receivable | - | |||||
Merchandise Inventory | 160,500 | - | ||||
Prepaid Insurance | 18,000 | - | ||||
Prepaid Advertising | 48,000 | |||||
Prepaid Rent | - | |||||
Store Supplies | 4,250 | - | ||||
Office Supplies | - | - | ||||
Note Receivable | 24,000 | |||||
Store Equipment | 175,000 | - | ||||
Accumulated Depreciation - Store Equipment | - | 40,050 | ||||
Office Equipment | 80,000 | - | ||||
Accumulated Depreciation - Office Equipment | - | - | ||||
Accounts Payable | - | 85,200 | ||||
Salaries Payable | - | - | ||||
Interest Payable | - | - | ||||
Unearned Rent | - | 20,000 | ||||
Unearned Consulting Revenue | ||||||
Note Payable (payment due 2020) | - | 146,000 | ||||
Common Stock | - | 60,000 | ||||
Retained Earnings | - | 111,500 | ||||
Dividends | 35,000 | - | ||||
Sales Revenues | - | 808,950 | ||||
Consulting Revenue | 24,000 | |||||
Sales Returns and Allowances | 11,700 | - | ||||
Sales Discounts | 7,200 | - | ||||
Cost of Goods Sold | 457,200 | - | ||||
Sales Salaries Expense | 94,650 | - | ||||
Advertising Expense | - | |||||
Depreciation Expense - Store Equipment | - | - | ||||
Store Supplies Expense | - | - | ||||
Miscellaneous Selling Expense | 2,600 | - | ||||
Office Salaries Expense | 34,000 | - | ||||
Rent Expense | 10,200 | - | ||||
Insurance Expense | - | - | ||||
Depreciation Expense - Office Equipment | - | - | ||||
Office Supplies Expense | 6,500 | - | ||||
Miscellaneous Administrative Expense | 1,650 | - | ||||
Rent Revenue | - | - | ||||
Interest Revenue | ||||||
Interest Expense | - | - | ||||
Bad Debt Expense | - | - | ||||
1,297,700 | 1,297,700 |
|
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