Rivers Corp , which sponsors river tours, adjusts and closes it accounts each December 31 The following situations require adjusting entries at the current year end Equipment is to be depreciated for the full year cost is $36,000, and the estimated useful life is five years The accounts receivable balance at December 31 is $6,400 The company estimates that 4 of receivables will not be collected (Assume a zero beginning balance in the allowance for doubtful accounts ) Property taxes for the current year have not yet been recorded or paid A statement for the current year was received near the end of December for $3,200 if paid after February 1 in the next year, a 10 penalty is assessed Office supplies that cost $320 were purchased during the year and debited to Supplies A physical count of inventory showed $80 of supplies at the prior year end and $120 at the current year end Rivers received $8,000 cash for 12 monthly tours to take place from September of the current year to August of the following year The total amount collected on September 1 of this year was credited to Service Revenue Rivers received a note receivable from a customer dated November 1 of the current year It is a $4,800, 10 note, due in one year At the maturity date, Rivers will collect the amount of the note plus interest for one year Salaries earned from December 29 through 31 of this year, but not yet recorded or paid, are $3,840 Interest expense of $320 incurred, but not yet recorded, for November and December of this year will not be paid until April 30 of next year Prepare the necessary adjusting journal entries on December 31 for each situation Assume that no adjusting journal entries were recorded during the year prior to year end Note Round your answers to the nearest whole dollar For example, enter 50 for 50 49 and enter 51 for 50 5 Please just do the 5 General Journal Ref Account Name Dr Cr 1 Depreciation Expense 7,200 0 Accumulated Depreciat 7,200 0 Bad Debt Expense 2 256 0 Allowance for Doubtful 256 Property Tax Expense 3,200 0 Property Taxes Payable 0 v 3,200 Supplies Expense 4 280 0 Supplies 280 5 Service Revenue 2,667 0 Deferred Service Reven 2,667 0 Interest Receivable 6 80 0 Interest Revenue 0v 80 Salaries Expense 7 3,840 0 Salaries Payable 0 3,840 Interest Expense 320 0 Interest Payable 0 320 LC

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 04, 2024

Rivers Corp., which sponsors river tours, adjusts and closes it accounts each December 31. The following situations require adjusting entries at the current year-end. Equipment

Rivers Corp., which sponsors river tours, adjusts and closes it accounts each December 31. The following situations require adjusting entries at the current year-end.

Equipment is to be depreciated for the full year: cost is $36,000, and the estimated useful life is five years.
The accounts receivable balance at December 31 is $6,400. The company estimates that 4% of receivables will not be collected. (Assume a zero beginning balance in the allowance for doubtful accounts.)
Property taxes for the current year have not yet been recorded or paid. A statement for the current year was received near the end of December for $3,200; if paid after February 1 in the next year, a 10% penalty is assessed.
Office supplies that cost $320 were purchased during the year and debited to Supplies. A physical count of inventory showed $80 of supplies at the prior year-end and $120 at the current year-end.
Rivers received $8,000 cash for 12 monthly tours to take place from September of the current year to August of the following year. The total amount collected on September 1 of this year was credited to Service Revenue.
Rivers received a note receivable from a customer dated November 1 of the current year. It is a $4,800, 10% note, due in one year. At the maturity date, Rivers will collect the amount of the note plus interest for one year.
Salaries earned from December 29 through 31 of this year, but not yet recorded or paid, are $3,840.
Interest expense of $320 incurred, but not yet recorded, for November and December of this year will not be paid until April 30 of next year.

Prepare the necessary adjusting journal entries on December 31 for each situation. Assume that no adjusting journal entries were recorded during the year prior to year-end.

Note: Round your answers to the nearest whole dollar. For example, enter 50 for 50.49 and enter 51 for 50.5.

image text in transcribed

Please just do the 5.

General Journal Ref. Account Name Dr. Cr. 1 Depreciation Expense 7,200 0 Accumulated Depreciat 7,200 0 Bad Debt Expense 2 256 0 Allowance for Doubtful 256 Property Tax Expense 3,200 0 Property Taxes Payable 0 v 3,200 Supplies Expense 4 280 0 Supplies 280 5 Service Revenue 2,667 0 Deferred Service Reven 2,667 0 Interest Receivable 6 80 0 Interest Revenue 0v 80 Salaries Expense 7 3,840 0 Salaries Payable 0 3,840 Interest Expense 320 0 Interest Payable 0 320 LC