Question
The unadjusted trial balance of the Dairy Plus Company as of December 31, 2017 is found on the trial balance tab. The following information is
The unadjusted trial balance of the Dairy Plus Company as of December 31, 2017 is found on the trial balance tab. The following information is required to prepare the necessary adjusting entries for the Dairy Plus Company.
1) The balance in Prepaid insurance represents a 24-month policy that went into effect on December 1, 2017. Review the unadjusted balance in Prepaid insurance, and prepare the necessary adjusting entry, if any.
2) Based on a physical count, supplies on hand total $4,050. Review the unadjusted balance in Supplies, and prepare the necessary adjusting entry, if any.
3) The equipment is expected to have a 4-year useful life, and be worth about $10,000 at the end of four years. Review the unadjusted balance in Accumulated depreciation, and prepare the necessary adjusting entry to record the monthly depreciation, if any.
4) On December 26, the client paid a $13,800 60-day fee in advance, covering December 27 to February 24. Review the unadjusted balance in Unearned Consulting Revenue, and prepare the necessary adjusting entry, if any.
5) Dairy Plus's employee earns $120 per day for a five-day workweek beginning on Monday and ending on Friday. The employee was last paid on Friday, December 26. Review the unadjusted balance in Salaries expense, and prepare the necessary adjusting entry, if any.
6) In the second week of December, Dairy Plus agreed to provide 30 days of consulting services to a local fitness club for a fixed fee of $5,820. The terms of the initial agreement call for Dairy Plus to provide services from December 12, 2017, through January 10, 2018, or 30 days of service. The club agrees to pay Dairy Plus $5,820 on January 10, 2018, when the service period is complete. Review the unadjusted balance in Consulting revenue, and prepare the necessary adjusting entry, if any.
Unadjusted
| Dairy Plus | ||
| Trial Balance | ||
| December 31, 2017 | ||
| Account Title | Debit | Credit |
|---|---|---|
| Cash | 28,075 | |
| Supplies | 5,400 | |
| Prepaid insurance | 6,600 | |
| Equipment | 24,400 | |
| Accounts payable | 10,200 | |
| Unearned consulting revenue | 13,800 | |
| R. Richards, Capital | 38,000 | |
| R. Richards, Withdrawals | 1,300 | |
| Consulting revenue | 7,300 | |
| Rental revenue | 800 | |
| Salaries expense | 2,040 | |
| Rent expense | 1,900 | |
| Utilities expense | 385 | |
| Total | 70,100 | 70,100
|
I want the general journal answers.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Auditing A Business Risk Approach
Authors: Larry E. Rittenberg, Karla Johnstone, Audrey Gramling
7th Edition
0324663722, 978-0324663723
