# On December 31, the end of the year, the accountant for Fireside Magazine was called away suddenly because of an

## Question:

On December 31, the end of the year, the accountant for Fireside Magazine was called away suddenly because of an emergency. However, before leaving, the accountant jotted down a few notes pertaining to the adjustments. Journalize the necessary adjusting entries. Assume that Fireside Magazine uses the periodic inventory system.
a– b. A physical count of inventory revealed a balance of \$ 199,830. The Merchandise Inventory account shows a balance of \$ 202,839.
c. Subscriptions received in advance amounting to \$ 156,200 were recorded as Unearned Subscriptions. At year-end, \$ 103,120 has been earned.
d. Depreciation of equipment for the year is \$ 12,300.
e. The amount of expired insurance for the year is \$ 1,612.
f. The balance of Prepaid Rent is \$ 2,400, representing four months’ rent. Three months’ rent has expired.
g. Three days’ salaries will be unpaid at the end of the year; total weekly (five days’) salaries are \$ 4,000.
h. As of December 31, the balance of the supplies account is \$ 1,800. A physical inventory of the supplies was taken, with an amount of \$ 920 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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