Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

XYZ Companys antecounting period ends on December 31, 2019. The following information concerns the adjusting entries recorded as of that datea a. The Office Supplies

image text in transcribed
XYZ Companys antecounting period ends on December 31, 2019. The following information concerns the adjusting entries recorded as of that datea a. The Office Supplies account started the year with a $3,775 balance. During 2019, the company purchased supplies for $15,591 which was added to the Office Supplies account. The inventory of supplies available at December 31, 2019, totaled $3,322 b. An analysis of the company's insurance policies provided the following facts. Policy A B Date of Purchase April 1, 2017 April 1, 2018 August 1, 2019 Months of Coverage 24 36 12 Cost $11,640 19,440 9,240 The total premium for each policy was paid in full (for all months) at the purchase date, and the Prepaid Insurance account was deb for the full cost (Year-end adjusting entries for Prepaid Insurance were properly recorded in all prior years.) c. The company has 15 employees, who earn a total of $1.950 in salaries each working day. They are paid each Monday for their we in the five-day workweek ending on the previous Friday, Assume that December 31, 2019, is a Tuesday, and all 15 employees worked the first two days of that week Because New Year's Day is a paid holiday, they will be paid salaries for five full days on Monday, January 6, 2020. d. The company purchased a bullding on January 1 2019. it cost $780,000 and is expected to have a $45,000 salvage value at the end of its predicted 20-year life. Annual depreciation is $36,750 e. Since the company is not large enough to occupy the entire building it owns, it rented space to a tenant at $2,100 per month starting on November 1, 2019. The rent was paid on time on November 1, and the amount received was credited to the Rent Earne account. However, the tenant has not paid the December rent. The company has worked out an agreement with the tenant, who has promised to pay both December and January rent in full on January 15 The tenant has agreed not to fall behind again, f. On November 1, the company rented space to another tenant for $1.903 per month The lenant paid five months rent in advance that date. The payment was recorded with a credit to the Unearned Rent account. Assume no other adjusting entries are made during the year Required: 1. Use the information to prepare adjusting entries as of December 31 2019 Prev 25 of 25 NI

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

Cost And Value Management In Projects

Authors: Ray R. Venkataraman, Jeffrey K. Pinto

1st Edition

0470069139, 978-0470069134

More Books

Students also viewed these Accounting questions

Question

1 + x ( 1 - 4 x ) 3

Answered: 1 week ago