Learning Objectives RJ-20 Determining the amount of peepaid expenses Consider the facts presented in the following table for Tropical View. Situation Beginning Prepaid Rent Payments for Prepaid Rent during the year Total amount to account for Subtract: Ending Prepaid Rent Rent Expense $200 11 $1,400 200 2100 800 $a $1,000 b 1600 $900 $1,900 Learning Objective 3 Learning Objective 3 Complete the table by filling in the missing values E3-21 Journalizing adjusting entries Consider the following situations: Business receives $3,200 on January 1 for 10-month service contract for the period January 1 through October 31. b. Total salaries for all employees is $3,600 per month. Employees are paid on the 1st and 15th of the month. c Work performed but not yet billed to customers for the month is $1,600 d. The company puys interest on its $16,000,4% note payable of $53 on the first day of cach month Assume the company records adjusting entries monthly. Journalize the adjusting entries needed as of January 31. E3-22 Journalizing adjusting entries Consider the following independent situations at December 31: A. On October 1, business collected $3,000 rent in advance, debiting Cash and Crediting Unearned Revenue. The tenant was paying one year's rent in advance. On December 31, the business must account for the amount of rent it has earned. b. Salaries expense is $1,800 per day Monday through Friday and the business pays employees each Friday. This year, December 31 falls on a Thursday c. The unadjusted balance of the Office Supplies account is $3.000. Office supplies on hand total $1,900 d. Equipment depreciation was $500. c. On April 1, when the business prepaid 54,320 for a two-year insurance policy, the business debited Prepaid Insurance and credited Cash Journaline the adjusting entry needed on December 31 for each sia letters to label the journal s 33-23 Journalizing adjusting entries Consider the following situations for Betterton Welding Services Depreciation for the current year includes equipment. $2.100 b. Each Monday, Betterton pays employees for the previous week's work. The amount of weekly payroll is $1,400 for a seven day workweek (Monday to Sunday) This year, December 31 falls on Thursday Learning Objective 3 c. The beginning balance of Office Supplies was $2,300. During the year, Betterton purchased office supplies for $3,000, and at December 31 the office supplies on hand totaled $1,000. d. Betterton prepaid a two full years' insurance on July 1 of the current year, $6,000. Record insurance expense for the year ended December 31. e. Betterton had earned $2,800 of unearned revenue. f. Betterton had incurred (but not recorded) $200 of interest expense on a note payable. The interest will not be paid until February 28. g. Betterton billed customers $3,000 for welding services performed. Journalize the adjusting entry needed on December 31 for each situation. Use the letters to label the journal entries. Learning Objectives RJ-20 Determining the amount of peepaid expenses Consider the facts presented in the following table for Tropical View. Situation Beginning Prepaid Rent Payments for Prepaid Rent during the year Total amount to account for Subtract: Ending Prepaid Rent Rent Expense $200 11 $1,400 200 2100 800 $a $1,000 b 1600 $900 $1,900 Learning Objective 3 Learning Objective 3 Complete the table by filling in the missing values E3-21 Journalizing adjusting entries Consider the following situations: Business receives $3,200 on January 1 for 10-month service contract for the period January 1 through October 31. b. Total salaries for all employees is $3,600 per month. Employees are paid on the 1st and 15th of the month. c Work performed but not yet billed to customers for the month is $1,600 d. The company puys interest on its $16,000,4% note payable of $53 on the first day of cach month Assume the company records adjusting entries monthly. Journalize the adjusting entries needed as of January 31. E3-22 Journalizing adjusting entries Consider the following independent situations at December 31: A. On October 1, business collected $3,000 rent in advance, debiting Cash and Crediting Unearned Revenue. The tenant was paying one year's rent in advance. On December 31, the business must account for the amount of rent it has earned. b. Salaries expense is $1,800 per day Monday through Friday and the business pays employees each Friday. This year, December 31 falls on a Thursday c. The unadjusted balance of the Office Supplies account is $3.000. Office supplies on hand total $1,900 d. Equipment depreciation was $500. c. On April 1, when the business prepaid 54,320 for a two-year insurance policy, the business debited Prepaid Insurance and credited Cash Journaline the adjusting entry needed on December 31 for each sia letters to label the journal s 33-23 Journalizing adjusting entries Consider the following situations for Betterton Welding Services Depreciation for the current year includes equipment. $2.100 b. Each Monday, Betterton pays employees for the previous week's work. The amount of weekly payroll is $1,400 for a seven day workweek (Monday to Sunday) This year, December 31 falls on Thursday Learning Objective 3 c. The beginning balance of Office Supplies was $2,300. During the year, Betterton purchased office supplies for $3,000, and at December 31 the office supplies on hand totaled $1,000. d. Betterton prepaid a two full years' insurance on July 1 of the current year, $6,000. Record insurance expense for the year ended December 31. e. Betterton had earned $2,800 of unearned revenue. f. Betterton had incurred (but not recorded) $200 of interest expense on a note payable. The interest will not be paid until February 28. g. Betterton billed customers $3,000 for welding services performed. Journalize the adjusting entry needed on December 31 for each situation. Use the letters to label the journal entries
