Using the ledger accounts below for Madonna Accounting and Consulting Services, prepare the appropriate adjusting entries...
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Using the ledger accounts below for Madonna Accounting and Consulting Services, prepare the appropriate adjusting entries for the year ended December 31, 20-1 using the Journal paper provided. 103 104 105 Notes Receivable Accounts Receivable Interest Receivable 204 205 401 402 505 510 110 Supplies 115 Prepaid Insurance 120 Equipment 121 Accumulated Amortization - Equipment 515 202 520 203 525 Salaries Payable Interest Payable Unearned Service Revenue Notes Payable Interest Revenue Service Revenue Amortization Expense Salaries Expense Interest Expense Supplies Expense Insurance Expense 1. Interest of $500 is accrued on a note receivable at December 31, 20-1. (accrued revenue) 2. Madonna has three employees who earn $120 per day per person. At December 31, four days' salaries have been earned but not paid. (accrued expenses) 3. A customer paid Madonna $10,000 on December 1, 20-1 for services to be rendered from December 1 through January 31, 20-2 (2 months). The original receipt was credited to a liability account. (unearned revenue now earned) 4. Madonna purchased equipment costing $48,000 on January 1, 20-1. Monthly amortization is $1,000. The company records amortization annually. (accrued expenses) 5. Madonna provided services to a customer in 20-1 at a fee of $500. This fee has not yet been received or billed. (accrued revenue) 6. Madonna started the year with no supplies on hand. They purchased $8,000 in supplies during the year and have $3,000 on hand at December 31, 20-1. Supplies were debited to the Supplies account (asset) when purchased. (assets to expenses) 7. Madonna paid $9,000 for a three-year insurance policy on July 1, 20-1, debiting Prepaid Insurance at that time. (assets to expenses) 8. Madonna borrowed $20,000 by signing a three-month 12% interest, note payable on November 1, 20-1. (accrued expenses) 9. Madonna purchased an investment on November 1, 20-1. Interest of $400 per month has been earned but not received prior to December 31, 20-1. (accrued revenues) Using the ledger accounts below for Madonna Accounting and Consulting Services, prepare the appropriate adjusting entries for the year ended December 31, 20-1 using the Journal paper provided. 103 104 105 Notes Receivable Accounts Receivable Interest Receivable 204 205 401 402 505 510 110 Supplies 115 Prepaid Insurance 120 Equipment 121 Accumulated Amortization - Equipment 515 202 520 203 525 Salaries Payable Interest Payable Unearned Service Revenue Notes Payable Interest Revenue Service Revenue Amortization Expense Salaries Expense Interest Expense Supplies Expense Insurance Expense 1. Interest of $500 is accrued on a note receivable at December 31, 20-1. (accrued revenue) 2. Madonna has three employees who earn $120 per day per person. At December 31, four days' salaries have been earned but not paid. (accrued expenses) 3. A customer paid Madonna $10,000 on December 1, 20-1 for services to be rendered from December 1 through January 31, 20-2 (2 months). The original receipt was credited to a liability account. (unearned revenue now earned) 4. Madonna purchased equipment costing $48,000 on January 1, 20-1. Monthly amortization is $1,000. The company records amortization annually. (accrued expenses) 5. Madonna provided services to a customer in 20-1 at a fee of $500. This fee has not yet been received or billed. (accrued revenue) 6. Madonna started the year with no supplies on hand. They purchased $8,000 in supplies during the year and have $3,000 on hand at December 31, 20-1. Supplies were debited to the Supplies account (asset) when purchased. (assets to expenses) 7. Madonna paid $9,000 for a three-year insurance policy on July 1, 20-1, debiting Prepaid Insurance at that time. (assets to expenses) 8. Madonna borrowed $20,000 by signing a three-month 12% interest, note payable on November 1, 20-1. (accrued expenses) 9. Madonna purchased an investment on November 1, 20-1. Interest of $400 per month has been earned but not received prior to December 31, 20-1. (accrued revenues)
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Related Book For
Accounting Volume 1
ISBN: 978-0132690096
9th Canadian edition
Authors: Charles T. Horngren, Walter T. Harrison, Jo Ann L. Johnston, Carol A. Meissner, Peter R. Norwood
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