A friend has asked you to look at the accounts of his small restaurant and recommend...
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A friend has asked you to look at the accounts of his small restaurant and recommend the end-of-period adjusting entries. After viewing the accounts, it was apparent that the following adjusting entries were re- quired. Complete journal entries for each required adjustment. a. A total of $2,040 of prepaid insurance must be expensed. b. A total of $5,000 of prepaid rent has been consumed. c. Kitchen equipment depreciation in the amount of $3,500 must be recognized. d. e. f. Interest on a note payable in the amount of $290 must be accrued. Wages earned and due employees but not paid total $692. Supplies of $874 have been used. A friend has asked you to look at the accounts of his small restaurant and recommend the end-of-period adjusting entries. After viewing the accounts, it was apparent that the following adjusting entries were re- quired. Complete journal entries for each required adjustment. a. A total of $2,040 of prepaid insurance must be expensed. b. A total of $5,000 of prepaid rent has been consumed. c. Kitchen equipment depreciation in the amount of $3,500 must be recognized. d. e. f. Interest on a note payable in the amount of $290 must be accrued. Wages earned and due employees but not paid total $692. Supplies of $874 have been used.
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a Debit Expenses Insurance 2040 Credit Assets Prepaid Insurance 2040 b Debit ... View the full answer
Related Book For
Fundamentals of Financial Accounting
ISBN: 978-1259864230
6th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
Posted Date:
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