Question
The data below concerns adjustments to be made at the Lamb Company. Adjustment data: On October 1, 2019, the firm paid rent of $7,200 in
The data below concerns adjustments to be made at the Lamb Company. Adjustment data:
On October 1, 2019, the firm paid rent of $7,200 in advance for a 6-month period.
A total of $6,200 should be recorded as depreciation of equipment for 2019.
On December 31, 2019, the firm owed salaries of $2,000 that will not be paid until January 2020.
On December 31, 2019, the firm owed the employers social security (6.2%) and Medicare (1.45%) taxes on all of the accrued salaries.
1. Record the adjusting entries in the general journal as of December 31, 2019. Record reversing entries in the general journal as of January 1, 2020.
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Contemporary Auditing Real Issues And Cases
Authors: Michael C. Knapp, Loreen Knapp
5th Edition
032418834X, 978-0324188349
