Question

Based on the information below, record the adjusting journal entries that must be made for June Kang Consulting Services on December 31, 2016. The company has a December 31 fiscal year-end. Use 18 as the page number for the general journal.
a.–b. Merchandise Inventory, before adjustment, has a balance of $9,500. The newly counted inventory balance is $10,500.
c. Unearned Seminar Fees has a balance of $16,000, representing prepayment by customers for four seminars to be conducted in December 2016 and January 2017.Three seminars had been conducted by December 31, 2016.
d. Prepaid Insurance has a balance of $15,000 for six months insurance paid in advance on October 1, 2016.
e. Store equipment costing $6,000 was purchased on September 1, 2016. It has a salvage value of $600, and a useful life of five years.
f. Employees have earned $500 of wages not paid at December 31, 2016.
g. The employer owes the following taxes on wages not paid at December 31, 2016: SUTA, $15.00; FUTA, $3.00; Medicare, $7.25; and social security, $31.00.
h. Management estimates uncollectible accounts expense at 1.5% (0.015) of sales. This year’s sales were $4,000,000.
i. Prepaid Rent has a balance of $18,000 for nine months’ rent paid in advance on October 1, 2016.
j. The Supplies account in the general ledger has a balance of $500. A count of supplies on hand at December 31, 2016, indicated $125 of supplies remain.
k. The company borrowed $12,000 on a two-month note payable dated December 1, 2016. The note bears interest at 6%.

Analyze:
After all adjusting entries have been journalized and posted, what is the balance of the Unearned Seminar Fees account?



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  • CreatedAugust 08, 2014
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