The ledger of Pharoah Company on July 31, 2017, includes the selected accounts before adjusting entries have
Question:
The ledger of Pharoah Company on July 31, 2017, includes the selected accounts before adjusting entries have been prepared.
An analysis of the company's accounts shows the following.
1. The investment in the notes receivable earns interest at a rate of 12% per year.
2. Supplies on hand at the end of the month totaled $16,800.
3. The balance in Prepaid Rent represents 4 months of rent costs.
4. Employees were owed $3,500 related to unpaid salaries and wages.
5. Depreciation on buildings is $5,040 per year.
6. During the month, the company satisfied obligations worth $4,600 related to the Unearned Services Revenue.
7. Unpaid maintenance and repairs costs were $2,250.
prepare the adjusting entries at July 31 assuming that adjusting entries are made monthly. (If no entry is required, select "Entry" for the account title and enter 0 for the amount. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Auditing a business risk appraoch
ISBN: 978-0324375589
6th Edition
Authors: larry e. rittenberg, bradley j. schwieger, karla m. johnston