Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I missed all the parts with an X. Wondering if anyone knows the right answer? Help Save & Exit Submit Check my work mode: This
I missed all the parts with an X. Wondering if anyone knows the right answer?
Help Save & Exit Submit Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question Problem 3-2A Preparing adjusting and subsequent journal entries LO P1, P2, P3, P4 Arnez Company's annual accounting period ends on December 31, 2019. The following information concerns the adjusting entries to be recorded as of that date. a. The Office Supplies account started the year with a $3,600 balance. During 2019, the company purchased supplies for $14,868 which was added to the Office Supplies account. The inventory of supplies available at December 31, 2019, totaled $3,168 b. An analysis of the company's insurance policies provided the following facts. Policy Months of Coverage cost Date of Purchase April 1, 2017 April 1, 2018 August 1, 2019 The total premium for each policy was paid in full for all months) at the purchase date, and the Prepaid Insurance account was debited for the full cost (Year-end adjusting entries for Prepaid Insurance were properly recorded in all prior years.) c. The company has 15 employees, who earn a total of $1,850 in salaries each working day. They are paid each Monday for their work in the five-day workweek ending on the previous Friday. Assume that December 31, 2019, is a Tuesday, and all 15 employees worked the first two days of that week. Because New Year's Day is a paid holiday, they will be paid salaries for five full days on Monday, January 6, 2020. d. The company purchased a building on January 1, 2019. It cost $665,000 and is expected to have a $45,000 salvage value at the end of its predicted 35-year life. Annual depreciation is $17,714 e. Since the company is not large enough to occupy the entire building it owns, it rented space to a tenant at $2.800 per month starting on November 1, 2019. The rent was paid on time on November 1, and the amount received was credited to the Rent Eamed account. However, the tenant has not paid the December rent. The company has worked out an agreement with the tenant, who Help Save & Ex Check my work mode: This shows what is correct or incorrect for the work you have completed so far, it does not indicate completion Return to ou 1. On November 1, the company rented space to another tenant for $2.537 per month. The tenant paid five months rent in advance on that date. The payment was recorded with a credit to the Unearned Rent account. Assume no other adjusting entries are made during the year. Required: 1. Use the information to prepare adjusting entries as of December 31, 2019 2. Prepare journal entries to record the first subsequent cash transaction in 2020 for parts cand e. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 and e. Prepare journal entries to record the first subsequent cash transaction in 2020 for parts Credit General Journal No Date Jan 06 Debit 3.700 5.550 Salaries expense Salaries payable Cash 9.250 2.800 Jan 15 Rent receivable Rent earned Cash 5,600 Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started