Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Crescent Custodial Service is owned by Mike Podgorney. After six months of operation, the June 30, 2020, trial balance for the company, presented

image text in transcribed

The Crescent Custodial Service is owned by Mike Podgorney. After six months of operation, the June 30, 2020, trial balance for the company, presented below, was prepared. Crescent Custodial Service Unadjusted Trial Balance Cash Accounts Receivable Prepaid Insurance June 30, 2020 S 762 914 380 Prepaid Rent 700 Cleaning Supplies 1,396 Cleaning Equipment 1,740 Truck 3,600 Accounts Payable $ 170 Unearned Janitorial Fees 480 Capital 7,095 Dividends 3,000 Janitorial Fees (Revenue) 7,487 Wages Expense 2,400 Gas, Oil, and Other Truck Expenses 340 $15.232 $15.232 The following information is also available. Cleaning supplies of $196 are on hand. h. Prepaid insurance represents the cost of a one-year policy purchased on January 1. Prepaid rent represents a $100 payment made on January 1 toward the last month's rent of a three-year lease plus $100 rent per month for each of the six past months. The cleaning equipment and the truck are depreciated at the rate of 20 percent per year. (Straight-line Depreciation) The unearned revenue represents a six-month payment in advance made by a customer on May 1. t. During the last week of June, Podgorney completed the first stage of work on a contract that will not be billed until the contract is completed. The amount that has been earned at this stage is $400. On Saturday, July 3, Podgorney will owe his employees $540 for one week's work (six-day work week). Required: Journalize the adjusting entries (in General Journal Form) as of June 30.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Using Financial Accounting Information The Alternative to Debits and Credits

Authors: Gary A. Porter, Curtis L. Norton

9th edition

978-1285183244, 128518324X, 978-1285779263, 1285779266, 978-1285183237

More Books

Students also viewed these Accounting questions