Question
Prepare general journal entries on December 31 to record the following unrelated year-end adjustments. A. Equipment was purchased on January 1 this year for $100,000
Prepare general journal entries on December 31 to record the following unrelated year-end adjustments.
A. Equipment was purchased on January 1 this year for $100,000 and the company uses straight-line depreciation. The asset has an estimated useful like of 3 years, and has a residual value is $25,000.
B. The Prepaid Insurance account has a $3,680 debit balance before adjustment. An examination of insurance policies shows $1,500 of insurance remained unexpired.
C. The company prepaid Insurance in the amount of $2,400 and debited insurance expense on that date. An examination of insurance policies shows $800 remained unexpired at year-end.
D. The company has five office employees who each earn $100 per day for a five-day workweek, Monday through Friday, that ends on Friday. The employees were paid on Friday, December 25, and have worked full days for the rest of the year.
E. On November 1, the company received November and December rent from a tenant whose rent is $1,400 per month. The $2,800 was credited to Rent Revenue at that time.
F. The company collects rent monthly from its tenants. One tenant whose rent is $3,000 per month has not paid his rent for November and December.
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