Question
Jenny W. runs a local florist. She reports the following transactions for December and has employed you to prepare the end-of-year adjusting entries needed at
Jenny W. runs a local florist. She reports the following transactions for December and has employed you to prepare the end-of-year adjusting entries needed at December 31. Narrations are required.
1. On December 1 the business borrowed $15 000 at a 4% per annum interest rate. The loan, and all accrued interest, is due in 3 months.
2. The business estimates that electricity and water used during December, for which bills will be received in January, amount to $ 1 000.
3. Prepaid insurance expired during the year, 6 000.
4. Supplies consumed during the year amounted to 10 000.
5. Revenue earned but not received, $ 8 000.
6. Depreciation on the building for the year is $ 9 000.
7. The telephone of $200 has been paid in advance and has been debited to rent expense.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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