6. Selected transactions for Rosewood Industries are presented below: The fiscal year end for the company is April 30. Prepare the necessary adjusting journal entries as of April 30. a. The company had purchased a two-year insurance policy for $2,400 on January 1 and debited the prepaid insurance account. b. Depreciation on equipment is $600. c. The company borrowed $15,000 on February 1 at 12% interest. Principal and interest are due on February 1 of the following year. d. The unadjusted trial balance showed a balance in supplies of $2,650. The count on April 30 showed $900 on hand. e. The company loaned $8,000 to a customer on April 1 with an interest rate of 12%. Principal and interest are due on March 31 of the following year. Employees earned $5,600 of salaries as of April 30. These salaries were paid May 3. f. g. The unadjusted trial balance showed unearned revenue of $7,200. During April, $1,200 was earned.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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6. Selected transactions for Rosewood Industries are presented below: The fiscal year end
for the company is April 30. Prepare the necessary adjusting journal entries as of April
30.
a. The company had purchased a two-year insurance policy for $2,400 on January 1
and debited the prepaid insurance account.
b. Depreciation on equipment is $600.
c. The company borrowed $15,000 on February 1 at 12% interest. Principal and
interest are due on February 1 of the following year.
d. The unadjusted trial balance showed a balance in supplies of $2,650. The count
on April 30 showed $900 on hand.
e.
The company loaned $8,000 to a customer on April 1 with an interest rate of
12%. Principal and interest are due on March 31 of the following year.
f. Employees earned $5,600 of salaries as of April 30. These salaries were paid May
3.
g. The unadjusted trial balance showed unearned revenue of $7,200. During April,
$1,200 was earned.
Transcribed Image Text:6. Selected transactions for Rosewood Industries are presented below: The fiscal year end for the company is April 30. Prepare the necessary adjusting journal entries as of April 30. a. The company had purchased a two-year insurance policy for $2,400 on January 1 and debited the prepaid insurance account. b. Depreciation on equipment is $600. c. The company borrowed $15,000 on February 1 at 12% interest. Principal and interest are due on February 1 of the following year. d. The unadjusted trial balance showed a balance in supplies of $2,650. The count on April 30 showed $900 on hand. e. The company loaned $8,000 to a customer on April 1 with an interest rate of 12%. Principal and interest are due on March 31 of the following year. f. Employees earned $5,600 of salaries as of April 30. These salaries were paid May 3. g. The unadjusted trial balance showed unearned revenue of $7,200. During April, $1,200 was earned.
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