The following transactions are adjusting entries that need to be booked as of June 30, 20XX:...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The following transactions are adjusting entries that need to be booked as of June 30, 20XX: 1. The money borrowed on June 2 is an interest-only loan with a 10 percent interest rate. The interest accrues each month even though it is only paid quarterly with the first payment not due until September 2, 20xx. Compute interest on a monthly basis not by number of days. 1) $ 1,766.25 S 213,716.25 S 1,780.97 215,497.22 S 1,795.81 217,293.03 2. The building has no salvage value and is depreciated on a straight-line basis over 30 years. The equipment has no salvage value and is depreciated on a straight-line basis over 10 years. 2) Straight-Line / Building Cost $ 335,850.00 $ Salvage Value $ Depreciable Amount 335,850.00 $ 30.00 $ 11,195.00 2) Useful Life Depreciation Year 1 Straight-Line/Equipment Cost Salvage Value Depreciable Amount Useful Life $ 111,950.00 $ $ 111,950.00 $ 10.00 $ Depreciation Year 1 11,195.00 3. One month of insurance coverage has expired. Assume an entire month's worth of insurance has expired not only the number of days between payment and end of June. 3) Insurance Exp $2,000.00 4. There is $8,500 of inventory left in storage at the end of the month and there was no inventory used for internal purposes. 4) Inventory $8,500.00 5. The last payday was June 28th (employees were paid for working that day). Wages accrue at $200 per day... 5) wages expense $2,191.78 wages payable $2,191.78 Required: 1. Prepare adjusting entries in good form based on the above information. Create separate adjusting journa entries from your part 1 journal entries. The following transactions are adjusting entries that need to be booked as of June 30, 20XX: 1. The money borrowed on June 2 is an interest-only loan with a 10 percent interest rate. The interest accrues each month even though it is only paid quarterly with the first payment not due until September 2, 20xx. Compute interest on a monthly basis not by number of days. 1) $ 1,766.25 S 213,716.25 S 1,780.97 215,497.22 S 1,795.81 217,293.03 2. The building has no salvage value and is depreciated on a straight-line basis over 30 years. The equipment has no salvage value and is depreciated on a straight-line basis over 10 years. 2) Straight-Line / Building Cost $ 335,850.00 $ Salvage Value $ Depreciable Amount 335,850.00 $ 30.00 $ 11,195.00 2) Useful Life Depreciation Year 1 Straight-Line/Equipment Cost Salvage Value Depreciable Amount Useful Life $ 111,950.00 $ $ 111,950.00 $ 10.00 $ Depreciation Year 1 11,195.00 3. One month of insurance coverage has expired. Assume an entire month's worth of insurance has expired not only the number of days between payment and end of June. 3) Insurance Exp $2,000.00 4. There is $8,500 of inventory left in storage at the end of the month and there was no inventory used for internal purposes. 4) Inventory $8,500.00 5. The last payday was June 28th (employees were paid for working that day). Wages accrue at $200 per day... 5) wages expense $2,191.78 wages payable $2,191.78 Required: 1. Prepare adjusting entries in good form based on the above information. Create separate adjusting journa entries from your part 1 journal entries.
Expert Answer:
Answer rating: 100% (QA)
Based on the provided information here are the adjusting entries in good form for t... View the full answer
Related Book For
Financial and Managerial Accounting
ISBN: 978-1133940593
10th edition
Authors: Belverd E. Needles, Marian Powers, Susan V. Crosson
Posted Date:
Students also viewed these accounting questions
-
The Company Lalo Company, headquartered in Vaduz, is a company listed in Amsterdam, Paris and Zurich. It is the third largest small home appliance manufacturer in Europe. The company was founded in...
-
You will be recording the July 2021 transactions for Lenny's Lawn Service, Inc. After recording the July transactions you will be preparing a Pre-Closing Trial Balance, Income Statement, Statement of...
-
(1) How Does Strategy Respond to Environmental Factors Imprima Corporation is based in the United States and is examining the prospects for expanding into international markets with its main product,...
-
Roberta Santos, age 41, is single and lives at 120 Sanborne Avenue, Springfield, IL 60781. Her Social Security number is 123-45-6789. Roberta has been divorced from her former husband, Wayne, for...
-
What minimum volume of 0.09621 M AgNO3 will be needed to assure an excess of silver ion in the titration of (a) An impure NaCl sample that weighs 0.2513 g? (b) 25.00 mL of 0.01907 M AlCl3?
-
Petitioner Curtis Flowers has been tried six separate times for the murder of four employees of a Mississippi furniture store. Flowers is black; three of the four victims were white. At the first two...
-
Depreciation and Cash Flow Ohare Companys only asset as of January 1, 2010, was a limousine. During 2010, only the following three transactions occurred: Services of $100,000 were provided on...
-
Annual sales (in millions of units) of a certain brand of tablet computers are expected to grow in accordance with the function f ( t ) = 0.18 t 2 + 0.16 t + 2.64 (0 t 4) per year, where t is...
-
You are considering replacing the local area network (LAN) for your small business. A state-of-the-art network (sold by SuperPC Inc.) will cost $50 000 for equipment and installation. You also...
-
Why does an annuity due always have a higher future value than an ordinary annuity?
-
What is a yield curve, and what information would you need to draw this curve?
-
Which of the following is false with respect to ADA as a substantive test? a. the auditor can test the entire population. b. the test may detect a material misstatement. c. the five-step process to...
-
Which of the following is true when evaluating results of an ADA procedure and drawing conclusions? a. further testing should not be required for ADAs in order to interpret results. b. results should...
-
Explain the meaning of the following terms and discuss why they are important in investing: a. Asset allocation b. Dollar cost averaging c. Investment risk d. Mutual funds
-
Using up-to-date information, you need to research both companies, Amazon and Target. In a minimum of two paragraphs for each company, provide a company background. At a minimum, you must include a...
-
What are the risks and liability factors in an audit? What are the implications to the auditor? What are the implications to the organization? How can the auditor mitigate these risks and liability...
-
At the end of its fiscal year, Berwyn Cleaners, Inc.'s trial balance is as follows. The following information is also available: a. A study of the company's insurance policies shows that $680 is...
-
How do managers use the concept of understandability during the management process?
-
Vision, Inc.'s comparative income statements follow. Compute the amount and percentage changes for the income statements, and comment on the changes from 2013 to 2014. (Round the percentage changes...
-
A function \(f\left(x_{1}, x_{2} ight)\) of two variables \(x_{1}\) and \(x_{2}\) is given by a. Multiply the matrices and express \(f\) as a polynomial in \(x_{1}\) and \(x_{2}\). b. Determine the...
-
A function \(f(x, y, z)\) of \(x, y\), and \(z\) is defined as a. Multiply the matrices and express \(f\) as a polynomial in \(x, y\), and \(z\). b. Write down the three equations necessary to find...
-
Solve the matrix equation \([\mathbf{K}]\{\mathbf{Q}\}=\{\mathbf{F}\}\) using forward reduction and backward substitution, where, 5-10 [K] = -13-1 0-1 1 {F}= 0
Study smarter with the SolutionInn App