The following items are independent. Assume that the original transactions have been recorded correctly or as...

  

Transcribed Image Text:

The following items are independent. Assume that the original transactions have been recorded correctly or as described. Assume a December 31 year-end unless otherwise noted. a. Prepaid insurance had a debit balance of $23,800 at the beginning of January. This represents the remaining 14 months in an insurance policy that was purchased in a prior year. On 1 April of the current year, a 30-month policy was bought for $66,000, which was debited to prepaid insurance. There were no other entries to the prepaid insurance account during the year. On 1 November, an 18-month policy was bought for $10,080. This policy was debited to insurance expense. b. Certain involces had not been recorded at 31 December: a $7,800 bill for power, a $900 phone bill, and a repair bil for $1,750. All these bills are due in January. C. Salaries payable has a balance of $7,700, unadjusted from the last year-end, There are 14 employees. They were paid up to Friday, 27 December. There were two additional working days prior to the year-end. Three employees earn $1,000 per (five-day) week each, three earn $900 per week, and eight earn $800 per week. d. There are two notes payable outstanding. The first is an $930,000, 4% note, issued on 1 September, no interest has been paid to date. The second is a $731,600, 3.5% note issued on 1 April; six months' interest was paid on 1 October. The notes payable themselves were properly recorded on issuance, but interest must be accrued to 31 December, the year-end. e. There is an unearned revenue account with a balance of $165,200. This includes a $10,400 security deposit from a tenant. This deposit will be returned when the tenant eventually vacates. The remaining $154,800 is six months' rent recelved, on a lease beginning 1 December, on commercial property. f. Supplies inventory had a balance of $24,400 at the end of last year. During the year, $72,200 of supplies were purchased, and were debited directly to supplies expense. At year-end, an inventory count was conducted, and the balance was ascertained to be $25,600. g. Advertising expense of $98,200 includes a $6,700 payment for an advertisement that will run in January of next year Required: 1. Prepare adjusting journal entries to reflect the facts above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your Intermediate calculations and round your final answers to the nearest whole dollar amount.) Required: 1. Prepare adjusting journal entries to reflect the facts above. (If no entry is required for a transaction/event, select "No Journal entry required" In the first account fleld. Do not round your Intermediate calculations and round your final answers to the nearest whole dollar amount.) View transaction list Journal entry worksheet 4 5. Record the salaries expense payable. Note Enter debits before credits Transaction General Journal Debit Credi Record entry Clear entry View general journal 2. Prepare reversing entries for adjusting journal entries that must be reversed. (If no entry is required for a transaction/event, select "No Journal entry required" in the first account field. Do not round your intermediate calculations and round your final answers to the nearest whole dollor amount.) View transaction list Journal entry worksheet 1. 21 3 Record the reversal entry for utilities and repair expenses. Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general journal The following items are independent. Assume that the original transactions have been recorded correctly or as described. Assume a December 31 year-end unless otherwise noted. a. Prepaid insurance had a debit balance of $23,800 at the beginning of January. This represents the remaining 14 months in an insurance policy that was purchased in a prior year. On 1 April of the current year, a 30-month policy was bought for $66,000, which was debited to prepaid insurance. There were no other entries to the prepaid insurance account during the year. On 1 November, an 18-month policy was bought for $10,080. This policy was debited to insurance expense. b. Certain involces had not been recorded at 31 December: a $7,800 bill for power, a $900 phone bill, and a repair bil for $1,750. All these bills are due in January. C. Salaries payable has a balance of $7,700, unadjusted from the last year-end, There are 14 employees. They were paid up to Friday, 27 December. There were two additional working days prior to the year-end. Three employees earn $1,000 per (five-day) week each, three earn $900 per week, and eight earn $800 per week. d. There are two notes payable outstanding. The first is an $930,000, 4% note, issued on 1 September, no interest has been paid to date. The second is a $731,600, 3.5% note issued on 1 April; six months' interest was paid on 1 October. The notes payable themselves were properly recorded on issuance, but interest must be accrued to 31 December, the year-end. e. There is an unearned revenue account with a balance of $165,200. This includes a $10,400 security deposit from a tenant. This deposit will be returned when the tenant eventually vacates. The remaining $154,800 is six months' rent recelved, on a lease beginning 1 December, on commercial property. f. Supplies inventory had a balance of $24,400 at the end of last year. During the year, $72,200 of supplies were purchased, and were debited directly to supplies expense. At year-end, an inventory count was conducted, and the balance was ascertained to be $25,600. g. Advertising expense of $98,200 includes a $6,700 payment for an advertisement that will run in January of next year Required: 1. Prepare adjusting journal entries to reflect the facts above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your Intermediate calculations and round your final answers to the nearest whole dollar amount.) Required: 1. Prepare adjusting journal entries to reflect the facts above. (If no entry is required for a transaction/event, select "No Journal entry required" In the first account fleld. Do not round your Intermediate calculations and round your final answers to the nearest whole dollar amount.) View transaction list Journal entry worksheet 4 5. Record the salaries expense payable. Note Enter debits before credits Transaction General Journal Debit Credi Record entry Clear entry View general journal 2. Prepare reversing entries for adjusting journal entries that must be reversed. (If no entry is required for a transaction/event, select "No Journal entry required" in the first account field. Do not round your intermediate calculations and round your final answers to the nearest whole dollor amount.) View transaction list Journal entry worksheet 1. 21 3 Record the reversal entry for utilities and repair expenses. Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general journal

Answer rating: 100% (QA)

1 Account Titles Debit Credit Insurance Expense 31240 2380014126600... View the full answer