Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 2: The account balances from the September 30, 2020 unadjusted accounts for Becket & Son, a consulting firm, are presented below. The company prepares

image text in transcribed
Problem 2: The account balances from the September 30, 2020 unadjusted accounts for Becket & Son, a consulting firm, are presented below. The company prepares financial statements monthly Accounts Receivable $205,669 Accounts Payable 10,152 Accumulated Depreciation 5.600 Cash 381.649 Rent Revenue 16,200 Contributed Capital 140,000 Building 114,640 Note Payable (3-year loan borrowed 9/1/20: total principal due at maturity: 10% interest due quarterly on the 1* day of each quarter) 300,000 Misc. Expense 188 Other Assets 22,400 Retained Earnings 14,294 Wage Expense 186,000 Advertising Expense 700 Consulting Revenue 425,000 Required: Prepare adjusting joumal entries at September 30.2020 one per item below. There are no hidden AJES. a. A note payable was borrowed on September 1, 2020 as shown above b. Another company, Hannah Inc. rents some unoccupied building space FROM Becket. On September 1, 2020, Becket received $16.200 from Hannah Inc, and credited Rent Revenue for this amount. This payment represented 18 months rent for the space beginning on September 1, 2020. Prepare ONE AJE that will address this situation. Do not reverse the original entry c. Becket's administrative staff works a six-day work week (Monday thru Saturday, no work on Sunday). Payday is every Friday, at the end of the day when wage expense is recorded and the cash disbursement is made for the weekly payroll of $30,000, cared evenly over the six days. September 30, 2020 falls on a Thursday d. Becket depreciates its building over 20 years using the straight line method. The residual (salvage value) is $2,640 Assume the building was purchased in 2019. w

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

Advanced Accounting

Authors: Debra C. Jeter, Paul Chaney

2nd Edition

0471218529, 978-0471218524

More Books

Students also viewed these Accounting questions

Question

600 lb 20 0.5 ft 30 30 5 ft

Answered: 1 week ago

Question

Should job descriptions be abandoned in recruitment and selection?

Answered: 1 week ago