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Is this correct? Jordan Company's annual accounting year ends on December 31. It is now December 31, 2018, and all of the 2018 entries have
Is this correct?
Jordan Company's annual accounting year ends on December 31. It is now December 31, 2018, and all of the 2018 entries have been made except for the following a. The company owes interest of $900 on a bank loan. The interest will be paid when the loan is repaid on September 30, 2019. No b. On September 1, 2018, Jordan collected six months' rent of $7,800 on storage space. At that date, Jordan debited Cash and c The company earned service revenue of $4,300 on a special job that was completed December 29, 2018. Collection will be made d. On November 1, 2018, Jordan paid a one-year premium for property insurance of $5,400, for coverage starting on that date. Caslh e. At December 31, 2018, wages earned by employees but not yet paid totaled $2,100. The employees will be paid on the next payroll f Depreciation of $2,000 must be recognized on a service truck purchased this year interest has been recorded credited Deferred Revenue for $7,800 during January 2019. No entry has been recorded was credited and Prepaid Insurance was debited for this amount. date, January 15, 2019 The income after all adjustments other than income taxes was $40,000. The company's income tax rate is 15%. Compute and record income tax expense Required Determine the accounting equation effects of each required adjustment. TIP: The first transaction is done for you as an example (Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign.) nsaction ssets iabilities ders' Equity Interest Expense Interest Payable Revenue 900 (900) 5,200 4,300 (900) (2,100) (2,000) (6,000) (5,200) ent Revenue Accounts Receivable 4,300 aid Insurance (900) nsurance Expense alaries and Wages Payable Accumulated Depreciation ncome Tax Payable 2.100 2.000 6,000 alaries and Wages Expense on Expense ncome Tax ExpenseStep by Step Solution
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