Question
Question 4 January Journal Entries At the end of the month, the following adjusting entries are needed. a. Two days of salary amounting to $60
Question 4
January Journal Entries
At the end of the month, the following adjusting entries are needed.
a. Two days of salary amounting to $60 remain unpaid; the amount will be included in the first Friday salary payment in Feburary.
b. A physical count indicates that $250 of supplies is still on hand.
c. The equipment has an estimated useful life of three years with zero residual value. The company uses straight-line depreciation method.
d. An amount of $100 interest revenue is accrued on the term deposit.
e. One month of the insurance policy has expired.
f. The January portion of the subscriptions revenue has been earned.
g. The January portion of the rent payment has expired.
h. Half of the sublet revenue has been earned.
i. The truck has an estimated useful life of five years with a residual value of $500.
Required:
1. Prepare all adjusting entries at January 31, 2017. (Descriptions for each journal entry are not necessary).
2. Prepare an adjusted trial balance at January 31.
3. Prepare an income statement (single-step), statement of changes in equity, and balance sheet.
4. Prepare and post the closing entries.
5. Prepare an after-closing trial balance.
Jan. 1 Pre-paid Rent Cash 1,500 1,500 Jan. 1 Pre-Paid Insurance 1,200 Cash 1,200 Jan. 1 Cash 60,000 Un-earned Revenue 60,000 Jan. 1 Cash 600 Un-earned Rent Revenue 600 Jan. 2 Supplies 750 Accounts Payable 750 Jan. 2 Equipment 7,200 Cash 7,200 Jan. 2 Vehicle 6,000 Cash 6,000 Jan. 5 Short-Term Investment 10,000 Cash 10,000 Jan. 31 Salaries Expense 1,500 Cash 1,500Step by Step Solution
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