The balances taken from the ledger of MK Company on December 31, 2001 before adjustment us...

 

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The balances taken from the ledger of MK Company on December 31, 2001 before adjustment us under: Debit Credit Cash 10,000 Accounts receivable 20,000 Allowance for doubtful account 4,000 Inventory Jan 1, 2001 40,000 12,000 Prepaid rent Furniture 82,000 Accumulated depreciation – furniture 6,000 Unearned commission income 8,000 Capital 114,000 100,000 Sales Commission income 50,000 Purchases 80,000 Transportation-in 8000 Salaries expense Advertising expense 16,000 14,000 282,000 282,000 Required: Give adjusting entries of the following information, considering each case separately: also mention what amount of commission income, commission receivable and unearned commission income should be reported in the income statement and balance sheet. (i) If commission income for the year Rs.6,000 (ii) If unearned commission on December 31, 2001, Rs.5,000 (iii) If commission receivable on December 31, 2001, Rs.4,500 The balances taken from the ledger of MK Company on December 31, 2001 before adjustment us under: Debit Credit Cash 10,000 Accounts receivable 20,000 Allowance for doubtful account 4,000 Inventory Jan 1, 2001 40,000 12,000 Prepaid rent Furniture 82,000 Accumulated depreciation – furniture 6,000 Unearned commission income 8,000 Capital 114,000 100,000 Sales Commission income 50,000 Purchases 80,000 Transportation-in 8000 Salaries expense Advertising expense 16,000 14,000 282,000 282,000 Required: Give adjusting entries of the following information, considering each case separately: also mention what amount of commission income, commission receivable and unearned commission income should be reported in the income statement and balance sheet. (i) If commission income for the year Rs.6,000 (ii) If unearned commission on December 31, 2001, Rs.5,000 (iii) If commission receivable on December 31, 2001, Rs.4,500

Answer rating: 100% (QA)

Solu tion Journal antries Date Particulor credit Debit De... View the full answer