Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Oklahoma Company has a fiscal year ending on December 31, 2015. The following information has been gathered so that the company could prepare adjustments: The

image text in transcribed
Oklahoma Company has a fiscal year ending on December 31, 2015. The following information has been gathered so that the company could prepare adjustments: The company had $4,000 of office supplies on hand on January 1, 2015, purchased $6, 300 of supplies during the year, and had $1, 200 of supplies were on hand on December 31, 2015. On October 1, 2015, a three-year in premium of $27,000 was paid for coverage beginning on that date. The payment was recorded in the prepaid Insurance account. A delivery vehicle was purchased for $30,000 on April 2, 2015. The vehicle has a 5-year life salvage value. Depreciation is estimated to be $6,000 per year or $500 per month. The company rents some of its unused factory space to a small manufacturer. The lease required an advance payment of $18,000 for six months' rent on November 1, 2015, and the lease term began that day. The advance payment received from the tenant was recorded as Unearned Revenue when it was received. Employees work five days per week and are paid $75,000 every other Friday; each pay period includes ten week days. The last payday during the company's fiscal year was properly recorded on Friday, December 26, 2015. The employees worked on December 29, 30, and 31, 2015; they will not be paid for that work until Friday, January 9, 2016 The Accounting Department sends bills to customers every Friday and records the revenue earned at that time. Customers were billed and the related revenue was properly recorded on Friday, December 26, 2015 Since then, services were performed on December 29, 30, and 31, 2015; those services totaled $29,000. This amount has not been recorded. Required: Prepare the adjusting entry that is required for each of the situations described above. Assume that you are adjusting the related accounts as of the end of the year and that no adjustments have been made since the dates provided above

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

SEO Competitor Audit Journal

Authors: Nelz Plummer

1st Edition

B09DDWJGRC, 979-8459748123

More Books

Students also viewed these Accounting questions

Question

What are the objectives of Human resource planning ?

Answered: 1 week ago

Question

Explain the process of Human Resource Planning.

Answered: 1 week ago