Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following information concerns the adjusting entries to be recorded on November 30, 2020, for Railink's year just ended a. The Office Supplies account started

image text in transcribed
image text in transcribed
image text in transcribed
The following information concerns the adjusting entries to be recorded on November 30, 2020, for Railink's year just ended a. The Office Supplies account started the year with a $5,300 balance. During 2020, the company purchased supplies at a cost of $25,300, which was added to the Office Supplies account. The inventory of supplies on hand at November 30 had a cost of $6,800. b. An analysis of the company's Insurance policies provided these facts: Pollor 1 2 Date of Purchase March 1, 2019 March 1, 2020 July 1, 2020 Years of Coverage Total Cost $ 6,960 24,120 4,380 The total premium for each policy was paid in full at the purchase date, and the Prepaid Insurance account was debited for the full cost. Appropriate adjusting entries have been made to November 30, 2019. c. The company has 15 employees who earn a total of $5,300 in salaries for every working day. They are paid each Wednesday for their work in the five-day workweek ending on the preceding Friday. All 15 employees worked November 23 to 27 inclusive. They will be paid salaries for five full days on Wednesday, December 2, 2020. d. The company purchased a building on July 1.2020. The building cost $311,000 and is expected to have a $30,000 residual value at the end of its predicted 20-year life. e. Because the company is not large enough to occupy the entire building, it arranged to rent some space to a tenant at $3.600 per month, starting on October 1.2020. The rent was paid on time on October 1 and the amount received was credited to the Rent Revenue account. However, the tenant has not paid the November rent. The company has worked out an agreement with the tenant who has promised to pay both November's and December's rent in full on December 15. 1. On October 1, the company also rented space to another tenant for $3.900 per month. The tenant paid five months rent in advance on that date. The payment was recorded with a credit to the Unearned Rent account. Assume Railink uses the straight-line method to depreciate its assets. For the case of calculations, assume that Salaries for November 30 is not considered for accrual purposes View transaction list BE X 1 Record the cost of supplies used during the year. > 2 Record the cost of insurance coverage that expired during the year. 3 Record the accrued but unpaid salaries. 4 Record the depreciation expense. Credit 5 Record the rent receivable. 6 Record the amount of rent revenue. Note : = journal entry has been entered Record entry Clear entry View general Journal 2. Prepare journal entries to record the subsequent cash transactions in December 2020 described in parts (c) and (e) View transaction list x 1 > Record the payment of accrued salaries. 2 Record the past due rent for two months. Credit Note : Journal entry has been entered Record entry Clear entry View general Journal

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_2

Step: 3

blur-text-image_3

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

Fundamental Accounting Principles

Authors: Larson Kermit, Tilly Jensen

Volume I, 14th Canadian Edition

71051503, 978-1259066511, 1259066517, 978-0071051507

More Books

Students also viewed these Accounting questions