Prepare the adjusting journal entries for the following situations and submit in an excel Spreadsheet. Please provide a brief explaining as to your response.

Situation A 

At the end of Fiscal 2019, the accountants find an invoice for the purchase of a product that was shipped to a customer that was not fully recorded. The sale amount was $60,000 and the cost of the inventory was $30,000. The sale was recorded correctly. What is the adjusting entry for the cost of the transaction?

Situation B 

In it now the end of the fiscal and the Bookkeeper noted that the water bill for the month of November 2019 was not received, hence the expense was not recorded. He called the city of Ottawa and after speaking with an associate, he was informed that the amount owing was approximately $600. What is the adjusting entry for this invoice?

Situation C 

As the accountant of Safety Works, management have informed you (the Accountant) that the following estimates will be used for following information:

              Fixed Assets                     Cost                     Useful Life             Salvage value

              Machines                          $40,000              10 years                 $5,000

              Tools                                  $ 5,000                5 years                   $500

Answer rating: 100% (QA)

Step 1 Adjusting entries are those entries wh... View the full answer