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Problem 3-8A Adjusting (annual) and subsequent cash journal entries LO4 The following information concerns the adjusting entries to be recorded on November 30, 2020, for

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Problem 3-8A Adjusting (annual) and subsequent cash journal entries LO4 The following information concerns the adjusting entries to be recorded on November 30, 2020, for Rail ink's year just ended. a. The Office Supplies account started the year with a $5,500 balance. During 2020, the company purchased supplies at a cost of $25.500, which was added to the Office Supplies account. The inventory of supplies on hand at November 30 had a cost of $7,000. b. An analysis of the company's insurance policies provided these facts: ok Years of Policy 1 Date of Purchase March 1, 2019 March 1, 2020 Coverage Total Cost $7,440 2 3 24,840 4,620 July 1, 2020 The total premium for each policy was paid in full at the purchase date, and the Prepaid Insurance account was debited for the full cost. Appropriate adjusting entries have been made to November 30, 2019. c. The company has 15 employees who earn a total of $5,500 in salaries for every working day. They are paid each Wednesday for their work in the five-day workweek ending on the preceding Friday. All 15 employees worked November 23 to 27 inclusive. They will be paid salaries for five full days on Wednesday, December 2, 2020. d. The company purchased a building on July 1, 2020. The building cost $313,000 and is expected to have a $32.000 residual value at the end of its predicted 25-year life. e. Because the company is not large enough to occupy the entire building, it arranged to rent some space to a tenant at $3.800 per month, starting on October 1, 2020. The rent was paid on time on October 1, and the amount received was credited to the Rent Revenue account. However, the tenant has not paid the November rent. The company has worked out an agreement with the tenant, who has promised to pay both November's and December's rent in full on December 15. f. On October 1, the company also rented space to another tenant for $4,000 per month. The tenant paid five months' rent in advance) on that date. The payment was recorded with a credit to the Unearned Rent account. Saved 5 Assume Railink uses the straight line method to depreciate its assets. For the ease of calculations, assume that Salaries for November 30 is not considered for accrual purposes. Required: 1. Use the information to prepare the annual adjusting entries as of November 30, 2020. (Do not round intermediate calculations. Round your final answer to nearest whole dollar.) View transaction list ebook Ack Journal entry worksheet Print 1 2 4 5 6 Record the cost of supplies used during the year. Note: Enter debits before credits. Date General Journal Credit Nov 30, 2020 12 points Debit 5 12 points eBook Ask Print 2. Prepare journal entries to record the subsequent cash transactions in December 2020 described in parts (c) and (e). View transaction list Journal entry worksheet 1 2 Record the payment of accrued salaries. Note: Enter debits before credits. Date General Journal Debit Credit Dec 02, 2020 Clear entry View general journal Record entry

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