Journalize the adjusting entry needed on December 31 the end
Journalize the adjusting entry needed on December 31, the end of the current accounting year, for each of the following independent cases affecting Outdoor Adventures, Inc. No other adjusting entries have been made for the year.
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.
Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
Relevant Tutors available to help