The following adjustments need to be made before the financial statements can be prepared at the end
Question:
The following adjustments need to be made before the financial statements can be prepared at the end of the year.
Enter the necessary journal entries into the template provided and provide the journal entry for each.
December Interest on a bank loan is due on January 2nd of the following year: accrue $1,000.
A contractor (outside services) has finished work on December 31st, but the invoice will not be received until January 7th of the following year: accrue $750.
A rent payment was made on December 1st for three months from December 1st to February 28th of the following year (6,000 in total). Record the transaction properly.
The company’s part-time employees worked a total of 50 hours in December, but will get paid only by January 5th. The hourly rate is $15.
The company must record the payment of its annual insurance premium for next year. The annual premium is $1,200, an adjustment is necessary to prepaid insurance.
Provide the adjusted trial balance.
Expert Answer:
TRIAL BALANCE Category CurrentNoncurrent AssetLiability Income Statement Equity Debit Credit Cash current assets 150000 Finished goods current assets ... View the full answer
