Badger Digging Company's year-end is August 31. Based on an analysis of the unadjusted trial balance at
Fantastic news! We've Found the answer you've been seeking!
Question:
Badger Digging Company's year-end is August 31. Based on an analysis of the unadjusted trial balance at August 31, 2022, the following information was available for the preparation of adjusting entries:
Transcribed Image Text:
The prepaid rent account showed a balance of $4,500. This was paid on August 1, 2022 and represents 3 months rent starting on that date. (a) A client paid $800 for services to be provided equally over four months beginning May 1, 2022. This amount was credited to the unearned revenue account. (b) The one employee is paid bi-weekly, and on August 31, salaries of $775 have accrued but not been recorded. (c) Services performed but unrecorded and uncollected at August 31 total $1,950. (d) Interest of $50 had accrued but not been recorded on the note receivable (e) as at August 31. The prepaid insurance account shows a balance of $1,500, the amount paid for a one year insurance policy purchased on June 1, 2022. The supplies account has an unadjusted balance of $685. A count shows $445 of supplies have now been used. (g) The August utilities bill arrived after ths unadjusted trial balance was prepared, and its $133 amount has not been paid or recorded. (h) (1) Estimated annual depreciation on the machine is $1,300. Required: Prepare annual adjusting journal entries on August 31, 2021 in the General Journal provided. Please put the letter of the entry in the date column. The prepaid rent account showed a balance of $4,500. This was paid on August 1, 2022 and represents 3 months rent starting on that date. (a) A client paid $800 for services to be provided equally over four months beginning May 1, 2022. This amount was credited to the unearned revenue account. (b) The one employee is paid bi-weekly, and on August 31, salaries of $775 have accrued but not been recorded. (c) Services performed but unrecorded and uncollected at August 31 total $1,950. (d) Interest of $50 had accrued but not been recorded on the note receivable (e) as at August 31. The prepaid insurance account shows a balance of $1,500, the amount paid for a one year insurance policy purchased on June 1, 2022. The supplies account has an unadjusted balance of $685. A count shows $445 of supplies have now been used. (g) The August utilities bill arrived after ths unadjusted trial balance was prepared, and its $133 amount has not been paid or recorded. (h) (1) Estimated annual depreciation on the machine is $1,300. Required: Prepare annual adjusting journal entries on August 31, 2021 in the General Journal provided. Please put the letter of the entry in the date column.
Expert Answer:
Answer rating: 100% (QA)
Journal entry No Particulars Debit Credit 1 prepaid Insurance 4500 To Insurance expense 4500 2 ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
Posted Date:
Students also viewed these accounting questions
-
Based on an analysis of the cash and other accounts, the following information was provided by the controller of Black Iron, Inc., a manufacturer of wood-burning stoves, for the year 2011. (a) Cash...
-
Based on an analysis of the cash and other accounts, the following information was provided by the controller of Lumbercamp, Inc., a manufacturer of wood-burning stoves, for the year 2008. (a) Cash...
-
The unadjusted trial balance at April 30, 2014, and adjustment data for the month of April 2014 for Garden Designs is presented in E4-6. Additional information: 1. $500 of the unearned revenue has...
-
Ghana Water Company Limited (GWCL) Profile Ghana Water Company Limited (GWCL) is a utility company, fully owned by the State. The company is responsible for potable water supply to all urban...
-
Using the information from S12-8, a market price of $32 per share, and 100,000 and 110,000 shares of common stock outstanding in 2011 and 2012, respectively, com pute the following for 2012. Round...
-
Making use of the fact that = y β and β Sxy/Sxx , show that Pt -1
-
You are the manager of internal audit for a large Australian city council. The council is responsible for all the normal services-for example, water, sewerage, roads, waste disposal, parklands, and...
-
On August 1, 2016, Bill Hudson established Heritage Realty, which completed the following transactions during the month: a. Bill Hudson transferred cash from a personal bank account to an account to...
-
Question 1 Study the scenario described below and answer all questions that follow. Firms achieve their missions in three conceptual ways: (1) differentiation, (2) costs leadership, and (3) response....
-
After its first month of operations, Paquette Advisors showed the following account balances in its general ledger accounts (T-accounts) as at January 31, 2020. During February, the following...
-
1. The MOSFET in the amplifier has V = 2.5 and k = 200 mA/V. Ignore any effects of the MOSFET output resistance Ro. a. Determine the DC value of VG. b. Determine the DC drain current. c. Determine...
-
What percentage of HCE is paid by government programs? How has government spending on health care changed since 1960?
-
Identify: stimuli that made you recognise a need. want(s) that could fulfil this need. demand(s), i.e., the desire and ability to pay for samsung washing machine to fulfil the need. Internal...
-
Instruction: Show your solution in every problem that needs computation Service Direct Direct Income Labor Materials Expenses Salaries 55,000 2,500 1,000 16,000 Number 1.No Ka Pee Co. 2.La Tan Ungan...
-
As your hand moves back and forth to generate longitudinal pulses in a spiral spring, your hand completes 3.96 back-and-forth cycles every 5.56s. The velocity of the pulse in the spring is 0.704cm/s....
-
A disk is initially motionless. It then begins to spin with a unknown constant angular acceleration for 8.00 seconds, after which its period is 0.855 seconds. How many rotations did it make in those...
-
You will be required to construct an algorithm to perform long division analytically. Numerical implementations are not allowed. You will also be required to perform long division using two different...
-
What kind of financial pressures can an LBO cause?
-
Make the journal entry (or entries) necessary to record the following transaction: Sold merchandise costing $8,000 for $14,000. Of the $14,000, $4,000 was received in cash and the remainder was on...
-
On January 1, 2011, the company purchased a piece of equipment for $75,000. The equipment has a 5-year useful life and $0 residual value. The company uses straightline depreciation for financial...
-
Using the following information, compute total current liabilities: Accrued Income Taxes Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9,000 Notes Payable (due in 14 months) ....
-
The Federal Reserve can use _________ policy to change the money supply and interest rates in an effort to influence total spending.
-
Define and explain the concept of opportunity cost.
-
Whether a countrys standard of living rises, levels off, or declines over time depends for the most part on _________ growth.
Study smarter with the SolutionInn App