Arnez Company's annual accounting period ends on December 31. The following information concerns the adjusting entries...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Arnez Company's annual accounting period ends on December 31. The following information concerns the adjusting entries to be recorded as of that date. a. The Office Supplies account started the year with a $4,000 balance. During the year, the company purchased supplies for $13,400, which was added to the Office Supplies account. The inventory of supplies available at December 31 totaled $2,554. b. The Prepaid Insurance account had a $20,000 debit balance at December 31 before adjusting for the costs of any expired coverage for the year. An analysis of prepaid insurance shows that $12,880 of unexpired insurance coverage remains at year- end. c. The company has 15 employees, who earn a total of $1,960 in salaries each working day. They are paid each Monday for their work in the five-day workweek ending on the previous Friday. Assume that December 31 is a Tuesday, and all 15 employees worked the first two days of that week. Because New Year's Day is a paid holiday, they will be paid salaries for five full days on Monday, January 6 of next year. d. The company purchased a building at the beginning of this year. It cost $960,000 and is expected to have a $45,000 salvage value at the end of its predicted 30-year life. Annual depreciation is $30,500. e. Since the company is not large enough to occupy the entire building it owns, it rented space to a tenant at $3,000 per month, starting on November 1. The rent was paid on time on November 1, and the amount received was credited to Rent Revenue. However, the tenant has not paid the December rent. The company has worked out an agreement with the tenant, who has promised to pay both December and January rent in full on January 31. f. On November 1, the company rented space to another tenant for $2,800 per month. The tenant paid five months' rent in advance on that date. The payment was recorded with a credit to the Unearned Revenue account. Assume no other adjusting entries are made during the year. Required: 1. Use the information to prepare adjusting entries as of December 31. 2. Prepare journal entries to record the first subsequent cash transaction in January of the next year for parts cand e. Arnez Company's annual accounting period ends on December 31. The following information concerns the adjusting entries to be recorded as of that date. a. The Office Supplies account started the year with a $4,000 balance. During the year, the company purchased supplies for $13,400, which was added to the Office Supplies account. The inventory of supplies available at December 31 totaled $2,554. b. The Prepaid Insurance account had a $20,000 debit balance at December 31 before adjusting for the costs of any expired coverage for the year. An analysis of prepaid insurance shows that $12,880 of unexpired insurance coverage remains at year- end. c. The company has 15 employees, who earn a total of $1,960 in salaries each working day. They are paid each Monday for their work in the five-day workweek ending on the previous Friday. Assume that December 31 is a Tuesday, and all 15 employees worked the first two days of that week. Because New Year's Day is a paid holiday, they will be paid salaries for five full days on Monday, January 6 of next year. d. The company purchased a building at the beginning of this year. It cost $960,000 and is expected to have a $45,000 salvage value at the end of its predicted 30-year life. Annual depreciation is $30,500. e. Since the company is not large enough to occupy the entire building it owns, it rented space to a tenant at $3,000 per month, starting on November 1. The rent was paid on time on November 1, and the amount received was credited to Rent Revenue. However, the tenant has not paid the December rent. The company has worked out an agreement with the tenant, who has promised to pay both December and January rent in full on January 31. f. On November 1, the company rented space to another tenant for $2,800 per month. The tenant paid five months' rent in advance on that date. The payment was recorded with a credit to the Unearned Revenue account. Assume no other adjusting entries are made during the year. Required: 1. Use the information to prepare adjusting entries as of December 31. 2. Prepare journal entries to record the first subsequent cash transaction in January of the next year for parts cand e.
Expert Answer:
Answer rating: 100% (QA)
Arnez Companys Adjusting Entries December 31 Here are the adjusting entries for Arnez Company as of ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Arnez Companys annual accounting period ends on December 31. The following information concerns the adjusting entries to be recorded as of that date. Entries can draw from the following partial chart...
-
Saeed does not keep proper books of account for his business but he has provided the following details of his assets and liabilities. Further information 1. Land and buildings have been revalued at...
-
True or false? The second-order correction E(2) to the ground-state energy is never positive.
-
In Exercises 87106, perform the indicated computations. Write the answers in scientific notation. If necessary, round the decimal factor in your scientific notation answer to two decimal places....
-
Identify the most appropriate approach and then design. Provide a rationale as to why this approach and design would be most appropriate. Develop a hypothetical research scenario that would...
-
The following information pertains to Mason Company for 2016: Beginning inventory ...... 90 units @ $40 Units purchased ........310 units @ $45 Ending inventory consisted of 30 units. Mason sold 370...
-
f(x)=5x-3, g(x)=x-5 (f+g)(x)=(Simplify your answer.)
-
A wealthy alumnae donates $500,000 in marketable securities to her alma mater to establish a scholarship fund. Per the trust agreement only the interest and dividends (including any gains in fair...
-
Payton got married in November of 2021 and her husband moved into the home Payton already owned, which had a basis of $300,000. Payton had owned and occupied the residence of 6 years. Neither Payton...
-
In the Business Associations context, what is the difference between a Limited Liability Partnership (LLP) and a Limited Liability Limited Partnership (LLLP), why would someone want to choose one...
-
A symmetrical, 2.0 m long, leaning bookshelf (m, 20.0 kg) leans up against a vertical wall, making an angle of 45.0 degrees with respect to the floor. The bookshelf remains secured to the floor,...
-
> Question 1 At Northern Colorado Regional Airport near Fort Collins, Colorado, elevation 5016 feet above sea- level, the observed station pressure is 24.77 in Hg. 1) Adjust this station pressure to...
-
You have a portfolio that has equal amounts invested in the following common stocks. What is the beta of the portfolio? Security Beta Bank of America 1.96 CA Technologies 1.74 Toyota Motor...
-
Consider the Table below. A. Complete the table, and draw a graph showing Price, MR and MC of this monopoly. B. How many units this monopoly firm should produce in order to maximize profit, and what...
-
If M = 7, s = 2, and X = 9.5, what is z?
-
Role of controller, role of chief financial officer. George Jimenez is the controller at Balkin Electronics, a manufacturer of devices for the computer industry. The company may promote him to chief...
-
In the following, assume that all growth and discount rates are stated in real terms. 1. Assume the Eurozone inflation-adjusted average growth in capital stock is 3.0 percent per annum into...
-
Which conclusion presented by Ryan about the top-down approach and the bottom-up approach is most likely correct? A. Conclusion 1. B. Conclusion 2. C. Conclusion 3. Use the following information to...
Study smarter with the SolutionInn App