Journalize the adjusting entry needed on 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 $2,400. Outdoor Adventures, Inc. pays liability insurance each year on April 30.
b. Outdoor Adventures, Inc. pays employees each Friday. The amount of the weekly payroll is $6,500 for a five-day workweek. December 31, the fiscal year-end, is a Tuesday.
c. Outdoor Adventures, Inc. received notes receivable from some customers for services provided. For the current year, accrued interest amounts to $350 and will be collected next year.
d. The beginning balance of Supplies was $1,800. During the year, $3,700 of supplies were purchased. At December 31, the supplies on hand total $2,200.
e. During the year, Outdoor Adventures, Inc. received $8,800 in advance for services to be provided at a later date. As of December 31, Outdoor Adventures, Inc. earned $5,100 of the total fees received during the current year.
f. Depreciation for the current year includes Vehicles, $2,850, and Equipment, $1,200.
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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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