The following information relates to Joachim Anderson, Realtor, at the close of the fiscal year ending December
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The following information relates to Joachim Anderson, Realtor, at the close of the fiscal year ending December 31:
1. | | Joachim paid the local newspaper $300 for an advertisement to be run in January of the next year, and charged it to Advertising Expense. |
2. | | On November 1, Joachim signed a three-month, 10% note to borrow $12,000 from Yorkville Bank. |
3. | | The following salaries and wages are due and unpaid at December 31: sales, $1,300; office clerks, $1,000. |
4. | | Interest of $400 has accrued to date on a note that Joachim holds from Grant Muldaur. |
5. | | The estimated loss on bad debts for the period is $1,400. |
6. | | Stamps and stationery are charged to the Office Expense account when purchased; $100 of these supplies remain on hand. |
7. | | Joachim has not yet paid the December rent of $1,000 on the building his business uses. |
8. | | Insurance was paid on November 1 for one year and charged to Prepaid Insurance, $960. |
9. | | Property tax accrued, $1,500. |
10. | | On December 1, Joachim accepted Alana Zipursky’s two-month, 15% note in settlement of her $4,800 account receivable. |
11. | | On October 31, Joachim received $2,400 from Tareq Giza in payment of six months’ rent for Giza’s office space in the building and credited Unearned Rent Revenue. |
12. | | On September 1, Joachim paid six months’ rent in advance on a warehouse, $7,950, and debited the asset account Prepaid Rent. |
13. | | The bill from Light & Power Limited for December has been received but not yet entered or paid, $400. (Use Accounts Payable.) |
14. | | The estimated depreciation on equipment is $1,000. |
Prepare annual adjusting entries as at December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select \"No Entry\" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)
Related Book For
Financial Accounting and Reporting
ISBN: 978-0273744443
14th Edition
Authors: Barry Elliott, Jamie Elliott
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