Problem 4-8B Adjusting entries and Closing entries LO2,3,5 Bullseye Market Research Company (BMRC) specializes in conducting...

  

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Problem 4-8B Adjusting entries and Closing entries LO2,3,5 Bullseye Market Research Company (BMRC) specializes in conducting focus groups for businesses launching a new product. BMRC analyzes customer likes and dislikes to ensure new products will be successful. No. 201 Accounts payable........ 108 Accounts receivable. 168 Accumulated depreciation, equipment 184 Accumulated depreciation, office furniture. 101 Cash............ 302 Consulting revenue 194 Copyright.. 251 Account Dan Eagle, capital....... Dan Eagle, withdrawals Depreciation expense, office furniture Equipment......... 301 606 167 633 401 623 233 145 183 104 Short-term investments. ******* 126 Supplies...... 637 Insurance expense.. Interest income.. Interest expense... Long-term notes payable. Notes receivable...... Office furniture..... Supplies expense........ 652 Telephone expense. 203 Unearned consulting revenue.. 688 Utilities expense.. 612 Wages expense. Totals............. Click here for a description of Table: Problem 4-8B. Debit 2,000 $ 1,500 4.200 3.500 700 16,000 600 30 5.000 5.100 4.000 750 2,150 470 3,230 37,380 $86.610 Credit $ 100 7,250 3.100 44,000 24.715 70 4,000 3,375 $86.610 You are the accounting manager. Your staff submitted the above trial balance for December 31, 2017. In your review, you discover the following additional information that has not been included in the trial balance. a. The equipment has an estimated useful life of 16 years. If you need to create a new account, use account number 604. b. Employees were paid $3,100 for ten days of work. This payroll included 2 days of payroll in December that were not recorded at year-end. If you need to add an account, use account number 202. c. On December 31, BMRC completed a focus group for a client on handbags. An invoice was sent to the company for $5,000 due January 31, 2018. d. On December 31, the company completed a market research report for a client. The client had prepaid $3,000 for this service in November. Required 1. Prepare the missing adjusting entries for transactions a-d. 2. Prepare an adjusted trial balance. 3. Based on your adjusted trial balance, prepare the closing entries. Problem 4-8B Adjusting entries and Closing entries LO2,3,5 Bullseye Market Research Company (BMRC) specializes in conducting focus groups for businesses launching a new product. BMRC analyzes customer likes and dislikes to ensure new products will be successful. No. 201 Accounts payable........ 108 Accounts receivable. 168 Accumulated depreciation, equipment 184 Accumulated depreciation, office furniture. 101 Cash............ 302 Consulting revenue 194 Copyright.. 251 Account Dan Eagle, capital....... Dan Eagle, withdrawals Depreciation expense, office furniture Equipment......... 301 606 167 633 401 623 233 145 183 104 Short-term investments. ******* 126 Supplies...... 637 Insurance expense.. Interest income.. Interest expense... Long-term notes payable. Notes receivable...... Office furniture..... Supplies expense........ 652 Telephone expense. 203 Unearned consulting revenue.. 688 Utilities expense.. 612 Wages expense. Totals............. Click here for a description of Table: Problem 4-8B. Debit 2,000 $ 1,500 4.200 3.500 700 16,000 600 30 5.000 5.100 4.000 750 2,150 470 3,230 37,380 $86.610 Credit $ 100 7,250 3.100 44,000 24.715 70 4,000 3,375 $86.610 You are the accounting manager. Your staff submitted the above trial balance for December 31, 2017. In your review, you discover the following additional information that has not been included in the trial balance. a. The equipment has an estimated useful life of 16 years. If you need to create a new account, use account number 604. b. Employees were paid $3,100 for ten days of work. This payroll included 2 days of payroll in December that were not recorded at year-end. If you need to add an account, use account number 202. c. On December 31, BMRC completed a focus group for a client on handbags. An invoice was sent to the company for $5,000 due January 31, 2018. d. On December 31, the company completed a market research report for a client. The client had prepaid $3,000 for this service in November. Required 1. Prepare the missing adjusting entries for transactions a-d. 2. Prepare an adjusted trial balance. 3. Based on your adjusted trial balance, prepare the closing entries.

Answer rating: 100% (QA)

1 Adjusting entries a Depreciation expense for equipment Depreciation expense Cost of equipment Accumulated depreciation Useful life Depreciation expense 16000 7250 16 years 450 Adjusting entry Debit ... View the full answer