Saved 07 Arnez Company's annual accounting period ends on December 31. The following information concerns the...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6659787f0c101_5826659787e8445e.jpg)
Transcribed Image Text:
Saved 07 Arnez Company's annual accounting period ends on December 31. The following information concerns the adjusting entries to be recorded as of that date. a. The Office Supplies account started the year with a $3,000 balance. During the year, the company purchased supplies for $12,390, which was added to the Office Supplies account. The inventory of supplies available at December 31 totaled $2,640. b. The Prepaid Insurance account had a $30,984 debit balance at December 31 before adjusting for the costs of any expired coverage for the year. An analysis of prepaid insurance shows that $22,299 of unexpired insurance coverage remains at year-end. c. The company has 15 employees, who earn a total of $1,750 in salaries each working day. They are paid each Monday for their work in the five-day workweek ending on the previous Friday. Assume that December 31 is a Tuesday, and all 15 employees worked the first two days of that week. Because New Year's Day is a paid holiday, they will be paid salaries for five full days on Monday, January 6 of next year. d. The company purchased a building at the beginning of this year. It cost $660,000 and is expected to have a $45,000 salvage value at the end of its predicted 25-year life. Annual depreciation is $24,600. e. Since the company is not large enough to occupy the entire building it owns, it rented space to a tenant at $2,000 per month, starting on November 1. The rent was paid on time on November 1, and the amount received was credited to Rent Revenue. However, the tenant has not paid the December rent. The company has worked out an agreement with the tenant, who has promised to pay both December and January rent in full on January 31. f. On November 1, the company rented space to another tenant for $1,812 per month. The tenant paid five months' rent in advance on that date. The payment was recorded with a credit to the Unearned Revenue account. Assume no other adjusting entries are made during the year. Required: 1. Use the information to prepare adjusting entries as of December 31. 2. Prepare journal entries to record the first subsequent cash transaction in January of the next year for parts cand e. Saved 07 Arnez Company's annual accounting period ends on December 31. The following information concerns the adjusting entries to be recorded as of that date. a. The Office Supplies account started the year with a $3,000 balance. During the year, the company purchased supplies for $12,390, which was added to the Office Supplies account. The inventory of supplies available at December 31 totaled $2,640. b. The Prepaid Insurance account had a $30,984 debit balance at December 31 before adjusting for the costs of any expired coverage for the year. An analysis of prepaid insurance shows that $22,299 of unexpired insurance coverage remains at year-end. c. The company has 15 employees, who earn a total of $1,750 in salaries each working day. They are paid each Monday for their work in the five-day workweek ending on the previous Friday. Assume that December 31 is a Tuesday, and all 15 employees worked the first two days of that week. Because New Year's Day is a paid holiday, they will be paid salaries for five full days on Monday, January 6 of next year. d. The company purchased a building at the beginning of this year. It cost $660,000 and is expected to have a $45,000 salvage value at the end of its predicted 25-year life. Annual depreciation is $24,600. e. Since the company is not large enough to occupy the entire building it owns, it rented space to a tenant at $2,000 per month, starting on November 1. The rent was paid on time on November 1, and the amount received was credited to Rent Revenue. However, the tenant has not paid the December rent. The company has worked out an agreement with the tenant, who has promised to pay both December and January rent in full on January 31. f. On November 1, the company rented space to another tenant for $1,812 per month. The tenant paid five months' rent in advance on that date. The payment was recorded with a credit to the Unearned Revenue account. Assume no other adjusting entries are made during the year. Required: 1. Use the information to prepare adjusting entries as of December 31. 2. Prepare journal entries to record the first subsequent cash transaction in January of the next year for parts cand e.
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Dell Computer Companys manufacturing process consists of assembly, functional testing, and quality control of the companys computer systems. The companys build-to-order manufacturing process-is...
-
1. If you were asked to prepare an argument representing the interests of the railroad industry against reregulation, what would your main points be? 2. If you were a representative of CURE, what...
-
Question 1 Mr. Fernandes is the owner of a sole proprietorship, F. Fernandes Enterprise. The following is his accounting record as at 1 August 2022. Paid rent in cash RM75. Date Business Transactions...
-
A company is considering two alternative machines with different net cash flows and salvage values. Present value amounts are calculated using Excel and the results follow. Potential Machine...
-
How does the delegation process intricately navigate the delicate balance between authority bestowment and accountability imposition within complex hierarchical structures ?
-
You take a short position on a forward contract on EUR 12,000,000 at the rate F(USD/EUR) = 1.11. The initial performance bond is $1,000,000 while the maintenance performance bond is $900,000. Fill...
-
What factors are most relevant in overall business planning and key account planning? How do you think the development of AI (Artificial Intelligence) will affect sales planning through tools like...
-
The Exotic Plant shop carries a variety of indoor gardening supplies and finds that for these supplies that they find on average sell at about the same rate throughout the year. One item they carry...
-
Question: explain Porter's 5 forces of Telenor revolutionising retail banking in Serbia. Be specific. Telenor: Revolutionizing Retail Banking in Serbia Digital Transformation of the Customer...
-
4. (10 points) An asymmetrical rectangular loop with current I = 51A is placed in the xy plane in free space as shown below. The wires are parallel to either x axis or y axis. Find numerical values...
-
Threads Limited manufactures nuts and bolts, which are sold to industrial users. The abbreviated financial statements for 2015 and 2016 are as follows: Dividends were paid on ordinary shares of...
-
The financial statements for Harridges Ltd are given below for the two years ended 30 June 2014 and 2015. Harridges Limited operates a store in the centre of a small town. Dividends were paid on...
-
Bradbury Ltd is a family-owned clothes manufacturer. For a number of years the chairman and managing director was David Bradbury. During his period of office, sales revenue had grown steadily at a...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App