1. Prepare adjusting entries for the following transactions: a. Prepaid tax account has a $8,000 debit...

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1. Prepare adjusting entries for the following transactions: a. Prepaid tax account has a $8,000 debit balance to start the year. A review of tax accounts payments shows that payments shows $2,000 of unexpired tax remains at the year end. b. The company has only one fixed asset (van) that is purchased at the start of this year. That asset had cost $140,000 had an estimated life of 5 years, and is expected to have $40,000 value at the end of the five years. c. Computer supplies account has a $5,000 debit balance to start the year. Computer supplies of $3,500 were purchased during the current year and debited to the stationery account. A December 31 physical count shows $2.050 of stationery remaining at the year end. d. The company charges $150 per month for pest control services. A customer paid $1,500 on July 1 in advance for 10 treatments and it was credited to the unearned service revenue account. As on December 31, the company has completed 6 treatments for the customer. e. At year end, advertisement expxense of $6,000 has been incurred by the company, but it not yet paid. f. At year end, a company has completed services of $15,000 for a client, but the client has not yet been billed nor recorded for those services. 1. Prepare adjusting entries for the following transactions: a. Prepaid tax account has a $8,000 debit balance to start the year. A review of tax accounts payments shows that payments shows $2,000 of unexpired tax remains at the year end. b. The company has only one fixed asset (van) that is purchased at the start of this year. That asset had cost $140,000 had an estimated life of 5 years, and is expected to have $40,000 value at the end of the five years. c. Computer supplies account has a $5,000 debit balance to start the year. Computer supplies of $3,500 were purchased during the current year and debited to the stationery account. A December 31 physical count shows $2.050 of stationery remaining at the year end. d. The company charges $150 per month for pest control services. A customer paid $1,500 on July 1 in advance for 10 treatments and it was credited to the unearned service revenue account. As on December 31, the company has completed 6 treatments for the customer. e. At year end, advertisement expxense of $6,000 has been incurred by the company, but it not yet paid. f. At year end, a company has completed services of $15,000 for a client, but the client has not yet been billed nor recorded for those services.

Answer rating: 100% (QA)

Adjusting Journal Entries in the books of Company for the year end S No Journal Entry a Upaid tax Ac ... View the full answer