As of year-end, a 20,000 90-day 10% note received from a customer on June 10, 2015...

  

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As of year-end, a 20,000 90-day 10% note received from a customer on June 10, 2015 was still on hand. No interest has yet been recorded on this note. 2. The company's Notes Payable balance includes a $100,000 one-year 18% note issued on January 15, 2015 wherein both principal and interest are payable at maturity. 3. The Prepaid Insurance account includes a $360,000 one- year insurance paid on March 1, 2015. 4. The company charges a nominal account upon purchase of office supplies. Total office supplies purchased was 12,300 but of this amount, 4, 100 remains on hand as of yearend. 5. As of yearend, the company's Service Revenue account balance of 70,000 included an advance collection of 10,000 for services to be rendered on Christmas 2015. 6. On February 15, 2015, the company received $85,000 for renting out its parking space. This payment covers rent from March 1, 2015 to December 31, 2015. The company credited a real account upon receipt of cash. 7. The company's Accounts Receivable and Allowance for Bad Debts at the beginning of the fiscal year are 90,000 and +2,400, respectively. At the end of the year, Accounts Receiv able has a 102,000 balance. The company maintains its doubtful accounts at 5% of its ending Accounts Receivable. 8. Employees' salaries still unpaid and unrecorded as of year end, 154,000. 9. Merchandise inventory at the beginning of the fiscal year is +42,560. At the end of the fiscal year, merchandise on hand was determined to be $46,500 through physical counting. 10. The company acquired an office equipment on June 1, 2015 with total cost of 82,000. It was estimated to have a residual value of $5,000 and useful life of 6 years. REQUIRED: 1. Prepare the necessary adjusting entry for each of the above independent cases at fiscal year-end, july 31, 2015. 2. Prepare the reversing entries on August 1, 2015. As of year-end, a 20,000 90-day 10% note received from a customer on June 10, 2015 was still on hand. No interest has yet been recorded on this note. 2. The company's Notes Payable balance includes a $100,000 one-year 18% note issued on January 15, 2015 wherein both principal and interest are payable at maturity. 3. The Prepaid Insurance account includes a $360,000 one- year insurance paid on March 1, 2015. 4. The company charges a nominal account upon purchase of office supplies. Total office supplies purchased was 12,300 but of this amount, 4, 100 remains on hand as of yearend. 5. As of yearend, the company's Service Revenue account balance of 70,000 included an advance collection of 10,000 for services to be rendered on Christmas 2015. 6. On February 15, 2015, the company received $85,000 for renting out its parking space. This payment covers rent from March 1, 2015 to December 31, 2015. The company credited a real account upon receipt of cash. 7. The company's Accounts Receivable and Allowance for Bad Debts at the beginning of the fiscal year are 90,000 and +2,400, respectively. At the end of the year, Accounts Receiv able has a 102,000 balance. The company maintains its doubtful accounts at 5% of its ending Accounts Receivable. 8. Employees' salaries still unpaid and unrecorded as of year end, 154,000. 9. Merchandise inventory at the beginning of the fiscal year is +42,560. At the end of the fiscal year, merchandise on hand was determined to be $46,500 through physical counting. 10. The company acquired an office equipment on June 1, 2015 with total cost of 82,000. It was estimated to have a residual value of $5,000 and useful life of 6 years. REQUIRED: 1. Prepare the necessary adjusting entry for each of the above independent cases at fiscal year-end, july 31, 2015. 2. Prepare the reversing entries on August 1, 2015.

Answer rating: 100% (QA)

To prepare the necessary adjusting entries for each of the independent cases at fiscal yearend July 31 2015 and the reversing entries on August 1 2015 well work through the information given casebycas... View the full answer