FMGT

MIDTERM EXAM Spring

D$.$ ADJUSTING JOURNAL ENTRIES $(14$ Marks$)$

The unadjusted trial balance of Fox Consulting Services at December $31,2023$ follows

$\backslash$table$[[$The unadjusted trial balance of Fox Consulting Services at Dece,,Credit$],[,$Debit,$],[,6,800],[$Cash$,10,600],[$Accounts receivable,$2,500],[$Prepaid insurance,$2,000],[$Prepaid rent,$400],[$Office supplies,$16,500,$$$,2,600],[$Equipment$],[$Accumulated depreciation $-$ equipment,,,$0],[$Salaries payable,,,,$0],[$Interest payable,,,,$650],[$Unearned service revenue,,,,$8,000],[$Note payable,,,,$18,200],[$Terry Fox, capital,,,,$],[$Terry Fox, drawings,,$2,800,,],[$Service revenue,,,,$3,100],[$Salaries expense,,$20,500,,],[$Depreciation expense,,$0,,],[$Rent expense,,$0,,],[$Insurance expense,,$0,,],[$Office supplies expense,,$0,,],[$Interest expense,,$450,,],[,$$$,62,550,,62,550]]$

Given the following information above, on the next page prepare the necessary adjusting entries at year end, December $31,2023$ for Fox Consulting Services. Descriptions are not required.

a$)$ A count revealed that $$100$ of office supplies were still on hand at December $31,2023$

b$)$ The accountant has determined that the prepaid insurance account balance at December $31,2023,$ should be in the amount of $$600$

c$)$ The equipment is depreciated at the rate of $$210$ per month.

d$)$ The accountant has determined that the unearned service revenue balance at December $31,2023,$

e$)$ Interest of $$200$ on the note payable has accrued to the end of the year.

f$)$ Salaries accrued at December $31,2023$ amounted to $$500$

g$)$ The accountant has determined that the prepaid rent balance at December $31,2023,$ should be in the amount of $$1000.$