Roland Company began operations on December 1 and needs assistance in preparing December 31 financial statements, including its year-end adjustments. The Tableau dashboard is provided to assist in the work. Selected December-January Transactions Purchased Insurance Finished Work for Telo Started Work for Telo Dec. 31 Year-End Jan 5 Jan 12 Dec 24 Dec 13 Dec 1 Dec 7 December 1 Prepaid a 24 month insurance policy (coverage starting immediately) for $2,400 cash. 1 Wages Paid Received Cash in Advance Purchased Supplies Additional Information as of December 31 justments. The Tableau dashboard is provided to assist in the work. Selected December-January Transactions urance Started Work for Telo Dec. 31 Year-End Finished work for te Dec 7 Dec 13 Dec 24 Jan 12 Jan 5 December 7 Purchased supplies for $2,000 cash. Received Cash in Advance Wages Paid Purchased Supplies Additional Information as of December 31 archased Insurance Started Work for Telo Dec. 31 Year-End Jan 5 Jan 12 Dec 24 Dec 1 Dec 7 Dec 13 le December 13 Agreed to do $10,000 worth of work for Telo over the next 30 days. Payment is to be received when the work is completed on Jan. 12. ! Received Cash in Advance Wages Paid Purchased Supplies Additional Information as of December 31 2 of 7 Jan 5 Jan 12 C 13 Dec 24 December 24 Received $4,000 cash in advance to perform work for ABX over the next four weeks. Wages Paid Received Cash in Advance nal Information as of December 31 Next > Dec. 31 Year-End SES Jan 12 Jan 5 January 5 Paid wages of $800 cash to workers. Wages Paid rance Jan 5 Jan 12 (Dec 24 January 12 Received $10,000 cash from Telo for work performed over the last 30 days. Wages Paid Received Cash in Advance Information as of December 31 Supplies Remaining at Year-End: $700 TE o urnal entries required for December, excluding the December 31 year-end adjustin diucting entries for (a) prepaid insurance, (b) supplies, (c) ac Keep Only O Exclude Wages Earned By Workers but not yet Paid at Year-End: $500 o D ecember, excluding the December 31 year-end adjusting entries. sting entries for (a) prepaid insurance, (b) supplies, (c) accrued wages, (d) accruec January Record the journal entries required for December, excluding the December 31 year-end adjusting entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Journal entry worksheet 1 2 3 4 Record the purchase of supplies. Note: Enter debits before credits. Debit Credit General Journal Date Dec 07 -ulat CILY WORKSneeu Record the cash payment of wages, assuming no reversing entries were prepared Note: Enter debits before credits. Debit Credit Date General Journal Jan 05 account balance should equal. Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. Assume no other adjusting entries are made during the year. a. Tao Co. receives $10,300 cash in advance for four months of evenly planned legal services beginning on October 1. Tao records it by debiting Cash and crediting Unearned Revenue both for $10,300. It is now December 31, and Tao has provided legal services as planned. What adjusting entry should Tao make to account for the work performed from October 1 through December 31? Unearned revenue Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. ALL b. Caden started a new publication called Contest News. Its subscribers pay $24 to receive 12 monthly issues. With every new subscriber, Caden debits Cash and credits Unearned Subscription Revenue for the amounts received. The company has 100 new subscribers as of July 1. It sends Contest News to each of these subscribers every month from July through December. Assume no changes in subscribers, prepare the year-end journal entry that Caden must make as of December 31 to adjust the Subscription Revenue account and the Unearned Subscription Revenue account. Unearned subscription revenue Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. QS 3-18 Analyzing profit margin LO A1 Damita Company reported net income of $58,525 and net sales of $565,000 for the current year. Calculate the company's profit margin. Profit Margin Choose Denominator: - Choose Numerator: Profit margin Profit margin 0 Roland Company began operations on December 1 and needs assistance in preparing December 31 financial statements, including its year-end adjustments. The Tableau dashboard is provided to assist in the work. Selected December-January Transactions Purchased Insurance Finished Work for Telo Started Work for Telo Dec. 31 Year-End Jan 5 Jan 12 Dec 24 Dec 13 Dec 1 Dec 7 December 1 Prepaid a 24 month insurance policy (coverage starting immediately) for $2,400 cash. 1 Wages Paid Received Cash in Advance Purchased Supplies Additional Information as of December 31 justments. The Tableau dashboard is provided to assist in the work. Selected December-January Transactions urance Started Work for Telo Dec. 31 Year-End Finished work for te Dec 7 Dec 13 Dec 24 Jan 12 Jan 5 December 7 Purchased supplies for $2,000 cash. Received Cash in Advance Wages Paid Purchased Supplies Additional Information as of December 31 archased Insurance Started Work for Telo Dec. 31 Year-End Jan 5 Jan 12 Dec 24 Dec 1 Dec 7 Dec 13 le December 13 Agreed to do $10,000 worth of work for Telo over the next 30 days. Payment is to be received when the work is completed on Jan. 12. ! Received Cash in Advance Wages Paid Purchased Supplies Additional Information as of December 31 2 of 7 Jan 5 Jan 12 C 13 Dec 24 December 24 Received $4,000 cash in advance to perform work for ABX over the next four weeks. Wages Paid Received Cash in Advance nal Information as of December 31 Next > Dec. 31 Year-End SES Jan 12 Jan 5 January 5 Paid wages of $800 cash to workers. Wages Paid rance Jan 5 Jan 12 (Dec 24 January 12 Received $10,000 cash from Telo for work performed over the last 30 days. Wages Paid Received Cash in Advance Information as of December 31 Supplies Remaining at Year-End: $700 TE o urnal entries required for December, excluding the December 31 year-end adjustin diucting entries for (a) prepaid insurance, (b) supplies, (c) ac Keep Only O Exclude Wages Earned By Workers but not yet Paid at Year-End: $500 o D ecember, excluding the December 31 year-end adjusting entries. sting entries for (a) prepaid insurance, (b) supplies, (c) accrued wages, (d) accruec January Record the journal entries required for December, excluding the December 31 year-end adjusting entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Journal entry worksheet 1 2 3 4 Record the purchase of supplies. Note: Enter debits before credits. Debit Credit General Journal Date Dec 07 -ulat CILY WORKSneeu Record the cash payment of wages, assuming no reversing entries were prepared Note: Enter debits before credits. Debit Credit Date General Journal Jan 05 account balance should equal. Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. Assume no other adjusting entries are made during the year. a. Tao Co. receives $10,300 cash in advance for four months of evenly planned legal services beginning on October 1. Tao records it by debiting Cash and crediting Unearned Revenue both for $10,300. It is now December 31, and Tao has provided legal services as planned. What adjusting entry should Tao make to account for the work performed from October 1 through December 31? Unearned revenue Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. ALL b. Caden started a new publication called Contest News. Its subscribers pay $24 to receive 12 monthly issues. With every new subscriber, Caden debits Cash and credits Unearned Subscription Revenue for the amounts received. The company has 100 new subscribers as of July 1. It sends Contest News to each of these subscribers every month from July through December. Assume no changes in subscribers, prepare the year-end journal entry that Caden must make as of December 31 to adjust the Subscription Revenue account and the Unearned Subscription Revenue account. Unearned subscription revenue Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. QS 3-18 Analyzing profit margin LO A1 Damita Company reported net income of $58,525 and net sales of $565,000 for the current year. Calculate the company's profit margin. Profit Margin Choose Denominator: - Choose Numerator: Profit margin Profit margin 0