Journalize the adjusting entries needed at December 31; the end of the current accounting year, for each
Question:
a. Prior to making the adjusting entry on December 31, the balance in Prepaid Insurance is $3,000. Waterfall Heights, Inc. pays liability insurance each year on September 30.
b. Waterfall Heights, Inc. pays employees each Friday. The amount of the weekly payroll is $19,000 for a five-day workweek. December 31, the fiscal year-end, is a Thursday.
c. Waterfall Heights, Inc. received notes receivable from some customers for services provided. For the current year, accrued interest amounts to $875 and will be collected next year.
d. The beginning balance of Supplies was $1,600. During the year, $4,400 of supplies were purchased. At December 31, the supplies on hand total $2,500.
e. During the year, Waterfall Heights, Inc. received $14,500 in advance for services to be provided at a later date. As of December 31, Waterfall Heights, Inc. earned $5,100 of the total fees received during the current year.
f. Depreciation for the current year includes Vehicles, $2,170, and Equipment, $1,300.
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Related Book For
Financial Accounting
ISBN: 978-0132889711
1st Canadian Edition
Authors: Jeffrey Waybright, Liang Hsuan Chen, Rhonda Pyper
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