Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Trotman's Variety Store is completing the accounting process for the current year just ended, December 31. The transactions during the year have been journalized and

image text in transcribed
Trotman's Variety Store is completing the accounting process for the current year just ended, December 31. The transactions during the year have been journalized and posted. The following data with respect to adjusting entries are available a Wages earned by employees during December, unpaid and unrecorded at December 31, amounted to $3,000. The last payroll was December 28, the next payroll will be January 6. b. Office supplies on hand at January 1 of the current year totaled $460. Office supplies purchased and debited to Office Supplies during the year amounted to $670. The year-end count showed $285 of supplies on hand. c. One-fourth of the basement space is rented to Kathy's Specialty Shop for $600 per month payable monthly. At the end of the current year, the rent for November and December had not been collected or recorded Collection is expected in January of the next year, d. The store used delivery equipment all year that cost $68,500 $11,500 was the estimated annual depreciation e On July 1 of the current year, a two-year insurance premium amounting to $2,640 was paid in cash and debited in full to Prepaid Insurance Coverage began on July 1 of the current year 1. The remaining basement of the store is rented for $2,300 per month to another merchant, M. Carlos, Inc. Carlos sells compatible, but not competitive, merchandise On November 1 of the current year, the store collected six months! rent in the amount of $13,800 in advance from Carlos; it was credited in full to Unearned Rent Revenue when collected Trotman's Variety Store operates a repair shop to meet its own needs The shop also does repairs for M. Carlos At the end of the current year, Carlos had not paid $860 for completed repairs. This amount has not yet been recorded as Repair Shop Revenue Collection is expected during January of next year 2. Prepare the adjusting entries that should be recorded for Trotman's Variety Store at December 31 of the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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

Step: 3

blur-text-image

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

Business Accounting Uk Gaap Volume 2

Authors: Alan Sangster, Frank Wood

1st Edition

0273718800, 9780273718802

More Books

Students also viewed these Accounting questions