1. Journalize the following adjusting entries using the following information:

   • ➢ The total monthly water rate is $30,000.

   • ➢ One employee’s salary was overpaid by $4,500. Investigations proved that a

     miscalculation occurred and the employee was indeed over paid for the month.

   • ➢ The insurance for the shop was due and payable by May 1st. The annual premium

     is $48,000 and the expense is incurred monthly. This was not previously included

     in the transactions listed

   • ➢ It was found that of Neiman Marcus balance, $4,000 must be written off as bad

     debts.

   • ➢ Three thousand dollars ($3,000) of the Commission received was for the month of

     June 2021

   • ➢ For the first month of operation, depreciation annually is calculated at:

     o Building – 9% Straight Line
     o Motor Vehicle - 15% Straight Line o Furniture – 12% Straight line

     Note: when doing the adjusted T accounts only the accounts that have been affected need to be done

Answer rating: 100% (QA)

1 Water Rate Adjustment Given Total monthly water rate is 30000 Journal Entry Debit Water Expense 30000 Credit Prepaid Water 30000 Account Debit Credi... View the full answer