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The goal of this assignment is to practice classifying and recording adjusting entries. A company has the following adjusting entries: Scenario 1 Scenario 2 Scenario
The goal of this assignment is to practice classifying and recording adjusting entries. A company has the following adjusting entries: Scenario 1 Scenario 2 Scenario 3 Scenario 4 Scenario 5 Scenario 6 On December 1, the balance of supplies totals $400. On December 15, the company purchases an additional $200 of supplies with cash. By the end of December, only $100 of supplies remains. On November 4, Company receives $6,000 cash from a local moving company in agreement to provide truck maintenance of $1,000 each month for the next six months beginning in December. Employees have worked the final four days in December, earning $600, but have not yet been paid. Company plans to pay its employees on January 2. Customers receiving $250 of maintenance services from Midas on December 29 have not been billed as of the end of the month. These customers will be billed on January 3 and are expected to pay the full amount owed on January 6. At the beginning of the year, AdShop's depreciable equipment has a cost of $28,0000, a four year life, and no salvage value. The equipment is depreciated $7,000 yearly over the four years service life. On October 1, 2020 the company borrows $20,000 from a local bank and signs a note. Principal and interest at 12% will be paid in 4 years. Directions 1. Accrued Revenue. For each scenario indicate the adjusting entry classification: Prepaid Expense, Depreciation Expense, Accrued Expense, or 2. For each scenario record the December 31, 2021 adjusting entry
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