Question
Prepare the annual adjusting journal entries for the year ended December 31 st 2014 for Van De Lay Industries for each of the following independent
Prepare the annual adjusting journal entries for the year ended December 31st 2014 for Van De Lay Industries for each of the following independent situations in (a) to (g).
A. The balance in the Supplies account on December 31st before year-end adjustments is $5,528. A physical count of supplies, however, reveals that the amount of supplies on hand on December 31st is $1,742 Prepare the December 31st 2014 year end adjusting entry.
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B. On May 1st 2014, purchased a two-year insurance policy for its buildings for $11,496 paying the full amount at that time. Prepare the year end adjusting entry for December 31st 2014.
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C. On June 1st 2014 signed a one-year lease to rent a building for $67,512 and paid the amount in full at that time. Prepare the December 31st 2014 year end adjusting entry.
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D. On September 1st 2014, Van De Lay agreed to lease some unused office space to a tenant for a one-year period and received $74,472 in advance. Prepare the December 31st 2014 year end adjusting entry.
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E. Van De Lay provides professional services to its clients and charges them an hourly rate. Clients are billed on the 15th day of every month. As at December 31st 2014, the company provided services to six clients which have not been billed. The company performed 425 hours of service for each client at a rate of $140. Prepare the December 31st 2014 adjusting entry.
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- The employees Elaine, George and Newman are paid every Friday. The company has a 5 day work week which runs from Monday to Friday and totals $3,000 and the last time the company paid the employees was on Friday December 27th. Prepare the December 31st 2014 adjusting entry.
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- On January 1st 2014 the company purchased assets totaling $216,260 that will depreciate at $10,813 each year. Prepare the December 31st 2014 adjusting entry.
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