The following selected accounts appear in Sloan Company's unadjusted trial balance at December 31, the end of
Question:
The following selected accounts appear in Sloan Company's unadjusted trial balance at December 31, the end of its fiscal year (all accounts have normal balances).
Required
a. Prepare Sloan Company's accounting adjustments at December 31, using the financial statement effects template and the following additional information.
1. Prepaid advertising at December 31 is \(\$ 800\).
2. Unpaid wages earned by employees in December are \(\$ 2,600\).
3. Prepaid insurance at December 31 is \(\$ 2,280\).
4. Unearned service fees at December 31 are \(\$ 3,000\).
5. Rent revenue of \(\$ 1,000\) owed by a tenant is not recorded at December 31 .
b. Prepare entries on January 4, of the following year, using the financial statement effects template to record 1. Payment of \(\$ 4,800\) cash in wages.
2. Cash receipt from the tenant of the \(\$ 1,000\) rent revenue.
Step by Step Answer:
Financial And Managerial Accounting For MBAs
ISBN: 9781618533593
6th Edition
Authors: Peter D. Easton