Journalize the required adjusting entries for the year ended December 31 for Butler Spa and Pool Accessories.
Question:
a– b. On December 31, a physical count of inventory was taken. The physical count amounted to $ 22,624. The Merchandise Inventory account shows a balance of $ 21,696.
c. On July 1 of this year, $ 2,400 was paid for a one- year insurance policy.
d. On November 1 of this year, $ 420 was paid for three months of advertising.
e. As of December 31, the balance of the Unearned Membership Fees account is $ 15,600. Of this amount, $ 9,200 has been earned.
f. Equipment purchased on May 1 of this year for $ 8,000 is expected to have a useful life of five years with a trade-in value of $ 500. All other equipment has been fully depreciated. The straight- line method is used.
g. As of December 31, three days’ wages at $ 250 per day had accrued.
h. As of December 31, the balance of the supplies account is $ 4,200. A physical inventory of the supplies was taken, with an amount of $ 1,650 determined to be on hand.
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Related Book For
College Accounting
ISBN: 978-1111528126
11th edition
Authors: Tracie Nobles, Cathy Scott, Douglas McQuaig, Patricia Bille
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