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Journalize the adjusting entries needed at December, 31 st , the end of the current accounting year, for each of the following independent cases affecting
Journalize the adjusting entries needed at December, 31st, the end of the current accounting year, for each of the following independent cases affecting Fox Theater Company. No other adjusting entries have been made for the year. Show calculations when required. Round answers to whole dollars.
- Fox Theater Company pays employees each Friday. The amount of the weekly payroll is $18,250 for a five-day workweek. December 31, the fiscal year-end, is a Monday.
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Calculation:
- Fox Theater Company received notes receivable from some customers for services provided. For the current year, accrued interest amounts to $890 and will be collected next year.
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- The beginning balance of Supplies was $950. During the year, $3,400 of supplies were purchased. At December 31, the supplies on hand totaled $1,200.
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Calculation:
- On Sept 1, Fox Theater received $12,800 in advance for services to be provided equally over the next 12 months.
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Calculation:
Problem 1 continued
- Equipment was purchased on January 1st for a cost of $12,000. It is expected to have a useful life of 5 years and a salvage value of $2,000.
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Calculation:
- On November 1, when $936 was paid for a one-year insurance policy, Prepaid Insurance was debited and Cash was credited.
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Calculation:
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