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Problem 3 - 2 B Preparing adjusting and subsequent journal entries * * S P 1 P 2 Natsu Company's annual accounting period ends on
Problem B Preparing adjusting and subsequent journal entries P P
Natsu Company's annual accounting period ends on October The following information concerns the adjusting entries that need to be
recorded as of that date. Entries can draw from the following partial chart of accounts: Cash; Accounts Receivable; Office Supplies; Prepaid
Insurance; Building; Accumulated DepreciationBuilding; Salaries Payable; Unearned Revenue; Rent Revenue; Salaries Expense; Office
Supplies Expense; Insurance Expense; and Depreciation ExpenseBuilding.
a The Office Supplies account started the fiscal year with a $ balance. During the fiscal year, the company purchased supplies for
$ which was added to the Office Supplies account. The supplies available at October totaled $
b The Prepaid Insurance account had a $ debit balance at October before adjusting for the costs of any expired coverage for the
fiscal year. An analysis of prepaid insurance shows that of unexpired insurance coverage remains at October
c The company has four employees, who earn a total of $ for each workday. They are paid each Monday for their work in the fiveday
workweek ending on the previous Friday. Assume that October is a Monday, and all four employees worked the first day of that week.
They will be paid salaries for five full days on Monday, November of the next fiscal year.
d The company purchased a building at the beginning of this fiscal year that cost $ and is expected to have a $ salvage value
at the end of its predicted year life. Annual depreciation is $
e Because the company does not occupy the entire building it owns, it rented space to a tenant at $ per month, starting on September
The rent was paid on time on September and the amount received was credited to the Rent Revenue account. However, the October
rent has not been paid. The company has worked out an agreement with the tenant, who has promised to pay both October and
November rent in full on November
f On September the company rented space to another tenant for $ per month. The tenant paid five months' rent in advance on that
date. The payment was recorded with a credit to Unearned Revenue.
Required
Use the information to prepare adjusting entries as of October
Prepare journal entries to record the first subsequent cash transaction in November for parts and
Am i suppose to make t accounts and trial balance
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