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The following (3) situations apply to Howard Electronics, Inc. for the year ended 12/31/23. INSTRUCTIONS - Make any adjusting entries required at 12/31/2023 for each
"The following (3) situations apply to Howard Electronics, Inc. for the year ended 12/31/23. INSTRUCTIONS - Make any adjusting entries required at 12/31/2023 for each situation. Financial Statements are prepared annually only. Provide an explanation for each entry showing all computations."
1. On September 1, 2023, Howard Electronics purchased a three-year fire and extended coverage | ||||||||
insurance policy and charged the $5,400 premium to prepaid insurance. |
2. | The employees work Monday through Friday. The total gross wages for the bi-weekly pay | |||||
period ended Friday, January 2, 2024 is $36,000. | ||||||
3. On September 1, 2023, the company received an advance payment of $58,000 on a construction | ||||||
project. The total amount received was credited to the Construction Revenue account. | ||||||
At December 31, 2023 it was estimated that 60% of the job was completed. |
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