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Tanya provides you with the following six pieces of information for you to prepare the necessary adjusting entries from each of them: 1. Accounts Receivable

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Tanya provides you with the following six pieces of information for you to prepare the necessary adjusting entries from each of them: 1. Accounts Receivable - $3,500 of the accounts receivable balance, from lama Baddebt, needs to be written off. The bookkeeper was not sure of how to do this entry so you will do it as an adjusting entry. In addition, after the write off, Tanya estimates that $19,800 of her accounts receivable will not be collected in the future and needs you to prepare the adjusting entry. 2. Office Supplies, Prepaid Insurance, and Prepaid Rent-Tanya advises that the business had $4,300 of office supplies left on hand at March 31, 2020, that $3,750 of the prepaid insurance has expired, and that the remaining prepaid rent balance should be a $2,500 deposit for the final month of the lease. You are to prepare the necessary adjusting entries for each account. 3. Note Payable - the note had an interest rate of 3% until December 31, 2019, at which time the business paid $11,250 for interest from April 1, 2019 (date of loan) to December 31, 2019. The note now has an interest rate of 2.2% which will be paid on December 31, 2020. Tanya needs you to prepare any necessary adjusting entry to March 31, 2020 to accrue interest owing for the three months. 4. Uneared revenue - Tanya advises that the unearned revenue is for prepayments received from customers before they pick-up their jewelry. By March 31, 2020, $54.750 of the unearned revenue has been earned, with customers purchasing jewelry that had a total original cost of $31,920. She needs you to record, as an adjusting/correcting entry, the earning of these sales and the expensing of the sold jewelry, which is still incorrectly on her books as inventory. 5. Inventory purchase and sales - Tanya's bookkeeper was not sure how to record a recent purchase of inventory and a sale of inventory, both which received a discount. It was the first time that the business had used discounts so the bookkeeper was not sure of the entries. Tanya would like you to record these entries as adjusting entries as they have not yet been recorded on her books. On March 15, 2020, the business purchased $43,000 of inventory on account, terms 3/7,6/30. The business paid for the inventory on March 19, less the discount. On March 21, 2020, Tanya sold inventory that cost $12,300 to one of her best customers for $21,000 on account, with the terms 2/10, 1/30. The customer paid for the purchase in full on March 25 and received the discount 6. Amortization - Tanya advises you that the store equipment has a 20-year useful life, with a residual value of $12,000. Tanya would like to use the straight-line method. For the office equipment, she expects it will also have a 8-year useful life, with a residual value of $21,000 but she would like to use the double- declining balance method. Both the store and office equipment were purchased on April 1, 2019. You are to record the necessary adjusting entry to record the depreciation for both of these assets for the year. Unajde OP Dr Adjusting Entries Adjusted 12800 3145 7 Prepaid free One 7,200 Act 1010 1015 Account Receivable 1016 Allowance for doute counts 1000 1030 Office Supplies 1000 1042 Prepaid Rent 1055 10 Amortation Office Equipment 1065 10 Store Bene Acumulated Amor Storlimen 4 2010 Accounts Payable 2020 Salaries Puyable Uneared Revenue 2000 Note Payable long term 3100 Tanya Xer, Capital 3020 Tanya Xavier, Withdrawal 40:20 Sales revence 4005 SOLO Cost of Good Sold pense 5020 Sales Expense 500 Advertising Expense 50 Amorin pete Office Times 5045 Amor Expense Store -2 3047 Soss 5060 Office Supplies Expense 5090 Rent per 5100 Telephone pense 500.000 LO Code de 200700 res respot PAS RTRAN Tanya provides you with the following six pieces of information for you to prepare the necessary adjusting entries from each of them: 1. Accounts Receivable - $3,500 of the accounts receivable balance, from lama Baddebt, needs to be written off. The bookkeeper was not sure of how to do this entry so you will do it as an adjusting entry. In addition, after the write off, Tanya estimates that $19,800 of her accounts receivable will not be collected in the future and needs you to prepare the adjusting entry. 2. Office Supplies, Prepaid Insurance, and Prepaid Rent-Tanya advises that the business had $4,300 of office supplies left on hand at March 31, 2020, that $3,750 of the prepaid insurance has expired, and that the remaining prepaid rent balance should be a $2,500 deposit for the final month of the lease. You are to prepare the necessary adjusting entries for each account. 3. Note Payable - the note had an interest rate of 3% until December 31, 2019, at which time the business paid $11,250 for interest from April 1, 2019 (date of loan) to December 31, 2019. The note now has an interest rate of 2.2% which will be paid on December 31, 2020. Tanya needs you to prepare any necessary adjusting entry to March 31, 2020 to accrue interest owing for the three months. 4. Uneared revenue - Tanya advises that the unearned revenue is for prepayments received from customers before they pick-up their jewelry. By March 31, 2020, $54.750 of the unearned revenue has been earned, with customers purchasing jewelry that had a total original cost of $31,920. She needs you to record, as an adjusting/correcting entry, the earning of these sales and the expensing of the sold jewelry, which is still incorrectly on her books as inventory. 5. Inventory purchase and sales - Tanya's bookkeeper was not sure how to record a recent purchase of inventory and a sale of inventory, both which received a discount. It was the first time that the business had used discounts so the bookkeeper was not sure of the entries. Tanya would like you to record these entries as adjusting entries as they have not yet been recorded on her books. On March 15, 2020, the business purchased $43,000 of inventory on account, terms 3/7,6/30. The business paid for the inventory on March 19, less the discount. On March 21, 2020, Tanya sold inventory that cost $12,300 to one of her best customers for $21,000 on account, with the terms 2/10, 1/30. The customer paid for the purchase in full on March 25 and received the discount 6. Amortization - Tanya advises you that the store equipment has a 20-year useful life, with a residual value of $12,000. Tanya would like to use the straight-line method. For the office equipment, she expects it will also have a 8-year useful life, with a residual value of $21,000 but she would like to use the double- declining balance method. Both the store and office equipment were purchased on April 1, 2019. You are to record the necessary adjusting entry to record the depreciation for both of these assets for the year. Unajde OP Dr Adjusting Entries Adjusted 12800 3145 7 Prepaid free One 7,200 Act 1010 1015 Account Receivable 1016 Allowance for doute counts 1000 1030 Office Supplies 1000 1042 Prepaid Rent 1055 10 Amortation Office Equipment 1065 10 Store Bene Acumulated Amor Storlimen 4 2010 Accounts Payable 2020 Salaries Puyable Uneared Revenue 2000 Note Payable long term 3100 Tanya Xer, Capital 3020 Tanya Xavier, Withdrawal 40:20 Sales revence 4005 SOLO Cost of Good Sold pense 5020 Sales Expense 500 Advertising Expense 50 Amorin pete Office Times 5045 Amor Expense Store -2 3047 Soss 5060 Office Supplies Expense 5090 Rent per 5100 Telephone pense 500.000 LO Code de 200700 res respot PAS RTRAN

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