Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 2 The Dunbar zoo operates a drive-through tourist attraction in hamilton. The selected accounts appearing below reflect balances on January 1 , 2017. -

Problem 2

The Dunbar zoo operates a drive-through tourist attraction in hamilton. The selected accounts appearing below reflect balances on January 1 , 2017.

- Prepaid Rent (expires on Nov 30,2017) 11,000

- Prepaid Insurance (expires on Sep 30,2017) 9,000

- Car 30,000

- Accumulated Amortization - Car 2,000

- Unearned Ticket Revenue 15,000

Other Data

- On December 1, 2017 the Zoo renewed the contract for another year for $18,000 to be paid in three installments. The first installment is due on April 1, 2018.

- On October 1, 2017, the zoo renewed the insurance policy for six months and paid $6,000. The full amount was record as an expense.

- The unearned ticket revenue represents tickets sold in advance for future zoo visits. During 2002, additional $12,000 of tickets were sold in advance and were recorded as revenue earned. On December 31, 2017. it was determined that $4,000 of the tickets sold in advance were not used by customers.

- A utility bill for $2,000 was received on December 31,2017 for the amount of utility used up during November and December 2017. The bill is due on jANUARY 15,2018.

- On December 1, 2017, the zoo signed a contract with the Mifflin Food to supply food for the animals for an amount of $500 per month, effective January 1, 2018. The zoo paid $4,000 in advance and recorded it as an asset.

Required

Prepare the adjusting entires that were made by the Dunbar Zoo on December 31, 2017. If no adjusting entry is required, please type NO ENTRY in the appropriate space.

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

Step: 3

blur-text-image

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

Auditing Teams Dynamics And Efficiency

Authors: Mara Cameran, Angelo Ditillo, Angela Pettinicchio

1st Edition

1032097000, 9781032097008

More Books

Students also viewed these Accounting questions

Question

Understand corporate and HRM strategy.

Answered: 1 week ago