a.-b. Merchandise Inventory, before adjustment, has a balance of $6,500. The newly counted inventory balance is $7,000. c. Unearned Seminar Fees has a balance of $5,000, representing prepayment by customers for five seminars to be conducted in June, July, and August 20X1. Two seminars had been conducted by June 30, 20X1. d. Prepaid Insurance has a balance of $6,000 for six months' insurance paid in advance on May 1, 20X1. e. Store equipment costing $19,840 was purchased on March 31, 20X1. It has a salvage value of $400 and a useful life of six years. f. Employees have earned $150 that has not been paid at June 30, 20X1. g. The employer owes the following taxes on wages not paid at June 30, 20X1: SUTA, $4.50; FUTA, $0.90; Medicare, $2.18; and social security, $9.30. h. Management estimates uncollectible accounts expense at 1 percent of sales. This year's sales were $1,000,000. i. Prepaid Rent has a balance of $5,100 for six months' rent paid in advance on March 1, 20X1. j. The Supplies account in the general ledger has a balance of $300. A count of supplies on hand at June 30, 20X1, indicated $10o of supplies remain. k. The company borrowed $10,600 from Second Bancorp on June 1, 20X1, and issued a four-month note. The note bears interest at 6 percent. Required: Based on the information above, record the adjusting journal entries that must be made for Sufen Consulting on June 30, 20X1. The company has a June 30 fiscal year-end. Analyze: After all adjusting entries have been journalized and posted, what is the balance of the Prepaid Rent account?
a.-b. Merchandise Inventory, before adjustment, has a balance of $6,500. The newly counted inventory balance is $7,000. c. Unearned Seminar Fees has a balance of $5,000, representing prepayment by customers for five seminars to be conducted in June, July, and August 20X1. Two seminars had been conducted by June 30, 20X1. d. Prepaid Insurance has a balance of $6,000 for six months' insurance paid in advance on May 1, 20X1. e. Store equipment costing $19,840 was purchased on March 31, 20X1. It has a salvage value of $400 and a useful life of six years. f. Employees have earned $150 that has not been paid at June 30, 20X1. g. The employer owes the following taxes on wages not paid at June 30, 20X1: SUTA, $4.50; FUTA, $0.90; Medicare, $2.18; and social security, $9.30. h. Management estimates uncollectible accounts expense at 1 percent of sales. This year's sales were $1,000,000. i. Prepaid Rent has a balance of $5,100 for six months' rent paid in advance on March 1, 20X1. j. The Supplies account in the general ledger has a balance of $300. A count of supplies on hand at June 30, 20X1, indicated $10o of supplies remain. k. The company borrowed $10,600 from Second Bancorp on June 1, 20X1, and issued a four-month note. The note bears interest at 6 percent. Required: Based on the information above, record the adjusting journal entries that must be made for Sufen Consulting on June 30, 20X1. The company has a June 30 fiscal year-end. Analyze: After all adjusting entries have been journalized and posted, what is the balance of the Prepaid Rent account?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please answer correctly. Thank you so much.
Transcribed Image Text:a.-b. Merchandise Inventory, before adjustment, has a balance of $6,500. The newly counted inventory balance is $7,000.
c. Unearned Seminar Fees has a balance of $5,000, representing prepayment by customers for five seminars to be conducted in
June, July, and August 20X1. Two seminars had been conducted by June 30, 20X1.
d. Prepaid Insurance has a balance of $6,000 for six months' insurance paid in advance on May 1, 20X1.
e. Store equipment costing $19,840 was purchased on March 31, 20X1. It has a salvage value of $400 and a useful life of six years.
f. Employees have earned $150 that has not been paid at June 30, 20X1.
g. The employer owes the following taxes on wages not paid at June 30, 20X1: SUTA, $4.50; FUTA, $0.90; Medicare, $2.18; and
social security, $9.30.
h. Management estimates uncollectible accounts expense at 1 percent of sales. This year's sales were $1,000,000.
i. Prepaid Rent has a balance of $5,100 for six months' rent paid in advance on March 1, 20X1.
j. The Supplies account in the general ledger has a balance of $300. A count of supplies on hand at June 30, 20X1, indicated $100
of supplies remain.
k. The company borrowed $10,600 from Second Bancorp on June 1, 20X1, and issued a four-month note. The note bears interest at
6 percent.
Required:
Based on the information above, record the adjusting journal entries that must be made for Sufen Consulting on June 30, 20X1. The
company has a June 30 fiscal year-end.
Analyze:
After all adjusting entries have been journalized and posted, what is the balance of the Prepaid Rent account?
Transcribed Image Text:Complete this question by entering your answers in the tabs below.
General
Journal
Analyze
Based on the information above, record the adjusting journal entries that must be made for Sufen Consulting on June 30, 20X1. The
company has a June 30 fiscal year-end. (Round your final answers to 2 decimal places.)
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Journal entry worksheet
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Record an adjusting entry for ending inventory.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
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