Question
Kretz corp prepares monthly financial statements and therefore adjusts its amounts at the end of every month. The following information is available for March 2016.
Kretz corp prepares monthly financial statements and therefore adjusts its amounts at the end of every month. The following information is available for March 2016.
A.Kretz corp takes out a 0 day 8% $15,000 not on march 1,2016 with interest and principle to be paid at maturity
B. asset account office supplies on hand as a balance of $1,280 on March 1, 2016. During the march Kretz adds $750 to the account for purchases during the period. A count of the supplies on hand at the end of march indicates a balance of $1,370
C.The companypurchased office equipment last year for $62,600 the equipment has an estimate useful life of six years and estimated salvage value of $5,000= 62,00-5000/6 years=$800.00 a mon / debit increase exp/decrease net income & equity=800/ credit =decreased assets
D.The companys plant operates seven days a week, with a daily payroll of 950 wages earners and paid every Sunday. The last day of the month is Thursday March 31.. 950*6=$5700 in wage / debit wage exp=$5700/ debit= salaries payable
E .The company rented In idle warehouse on a neighboring business on Feb 1, 2016 at a rate of 2500 per month. On the date Kretz corp credited rent collected in advance from 6 months rent received in advance
F. On march 2016 Kretz corp credited a liability account, customer deposits for $4,800 this sum represents an amount that a customer paid in advance and that Kretz will earn evenly over 4 a month period
G. Base on it income for the month , Krietz corp estimates that federal income taxes for march amount to $3,900.00
For each of the proceedings situations prepare in general journal from the appropriate adjusting entry to be recorded on March 31, 2016.
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