Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Six transactions (given below) were completed during 2019 by Lucky Company. The annual accounting period ends December 31. Each transaction will require an adjusting entry
- Six transactions (given below) were completed during 2019 by Lucky Company. The annual accounting period ends December 31. Each transaction will require an adjusting entry at December 31, 2019.
- On May 1, 2019, Lucky Company paid $12,600 for one years rent beginning on that date. The rent payment was recorded as follows:
May 1, 2019
Prepaid rent expense $12,600
Cash 12,600
- Lucky Company purchased office supplies during the year that cost $700 and placed the supplies in a storeroom for use as needed. The purchase was recorded as follows:
February 1, 2019
Office supplies inventory $700
Cash 700
At the end of 2019, a count showed unused office supplies of $150 in the storeroom. There was no beginning inventory of supplies on hand.
- On December 31, 2019, Lucky Company owed employees $3,000 for wages earned during December. These wages had not been paid nor recorded so far.
- On December 31, 2019 a tenant renting some office space from Lucky Company had not paid the monthly rent of $500, yet.
- On December 31, 2019, Lucky company received a tax bill of $ 300 from the city for 2019 property.
- Assume Lucky Company publishes a monthly magazine. On October 1, 2019, the company collected $240 for a yearly subscription. The $240 collection was recorded as follows:
October 1, 2019
Cash $240
Unearned subscription revenues 240
Required:
- For each transaction (A F) journalize the adjusting entry at the end of the year (December 31, 2019).
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started