Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Journalize the following year end journal entries. Year end is December 31. A. Prepaid insurance account has a balance of $20,000 and is for a

Journalize the following year end journal entries. Year end is December 31.

A. Prepaid insurance account has a balance of $20,000 and is for a 1-year policy. The policy was purchased on April 1.

B. Unearned revenue has a balance of 100,000. This is for a 5-month contract that we started on October 1.

C. The company uses the Statement of Financial Position method to record bad debt expense. At the end of the year Allowance for Doubtful accounts had a $1,000 credit balance and Accounts Receivable had a $500,000 balance. The company expects that 2% of receivables will not be collected.

D. The company uses the perpetual method for their merchandise inventory. At year end the inventory count was $1,500,000 but the merchandise inventory general ledger account balance was $1,700,000. Net realizable value of the inventory at year end was calculated to be $2,000,000.

E. A short term note receivable was issued on September 1 for the amount of $10,000. The terms of the note were as follows: 6 months note at 3% interest.

F. Office supplies inventory was counted at the end of the year and was found to be $10,500. The general ledger account balance is $20,000.

G. We found an invoice for vehicle expense in the amount of $3,000. This invoice was not recorded in our records.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial And Managerial Accounting

Authors: Charles T Horngren, Jr Walter T Harrison

2nd Edition

0135080193, 9780135080191

More Books

Students also viewed these Accounting questions