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Transaction Entries and Adjusting Entries Deluxe Building Services offers janitorial services on both a contract basis and an hourly basis. On January 1, Deluxe collected

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Transaction Entries and Adjusting Entries Deluxe Building Services offers janitorial services on both a contract basis and an hourly basis. On January 1, Deluxe collected $42,000 in advance on a six-month contract for work to be performed evenly during the next six months. a. Provide the general journal entry on January 1 to record the receipt of $42,000 for contract work. b. Provide the adjusting entry to be made on January 31, for the contract work done during January c. At January 31, a total of 40 hours of hourly rate janitor work was unbilled. The billing rate is $25 per hour. Provide the adjusting entry needed on January 31. (Note: The firm uses the account Fees Receivable to reflect amounts due but not yet billed.) Round your answers to the nearest whole number. Credit Debit 42000 $ $ 42000 Date Description a. Jan. 1 Cash Fees Receivable To record 6 month contract. b. Jan. 31 Unearned Service Revenue Service Fees Earned To record January service fees earned on contract. c. Jan. 31 42000 42000 To record unbilled service fees at January 31. Adjusting Entries for each of the following unrelated situations, prepare the necessary adjusting entry in general journal form: a. Unrecorded depreciation on equipment is $800. b. The Supplies account has a balance of $3,100. Supplies on hand at the end of the period totaled $1,200. c. On the date for preparing financial statements, an estimated utilities expense of $425 has been incurred, but no utility bill has been received d. On the first day of the current month, rent for four months was paid and recorded as a $2,800 debit to Prepaid Rent and a $2,800 credit to Cash. Monthly statements are now being prepared. e. Nine months ago, Solid Insurance Company sold a one-year policy to a customer and recorded the receipt of the premium by debiting Cash for $800 and crediting Unearned Premium Revenue $800, No adjusting entries have been prepared during the nine- month period. Annual financial statements are now being prepared. f. At the end of the accounting period, employee wages of $1,050 have been incurred but not paid. g. At the end of the accounting period, $411 of interest has been earned but not yet received on notes receivable that are held. Description Credit Debit 800 $ To record depreciation expense. To record supplies expense. To record accrued utilities expense. To record rent expense for the month. To record premium revenue earned. To record accrued wages at the end of the period. To accrue interest earned but not yet received Check

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