a.-b. Merchandise Inventory, before adjustment, has a balance of $6,800. The newly counted inventory balance is $7,300. c. Unearned Seminar Fees has a balance of $5,300, 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 $7,800 for six months' insurance paid in advance on May 1, 20X1. e. Store equipment costing $17,710 was purchased on March 31, 20X1. It has a salvage value of $430 and a useful life of six years. f. Employees have earned $180 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, $5.40; FUTA, $1.08; Medicare, $2.61; and social security, $11.16. h. Management estimates uncollectible accounts expense at 1 percent of sales. This year's sales were $1,300,000. i. Prepaid Rent has a balance of $5,550 for six months' rent paid in advance on March 1, 20X1. j. The Supplies account in the general ledger has a balance of $330. A count of supplies on hand at June 30, 20XX1, indicated $115 of supplies remain. k. The company borrowed $10,000 from Second Bancorp on June 1, 20X1, and issued a four-month note. The note bears interest a 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?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Problem:
a.-b. Merchandise Inventory, before adjustment, has a balance of $6,800. The newly counted inventory balance is $7,300.
c. Unearned Seminar Fees has a balance of $5,300, 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 $7,800 for six months' insurance paid in advance on May 1, 20X1.
e. Store equipment costing $17,710 was purchased on March 31, 20X1. It has a salvage value of $430 and a useful life of six years.
f. Employees have earned $180 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, $5.40; FUTA, $1.08; Medicare, $2.61; and
social security, $11.16.
h. Management estimates uncollectible accounts expense at 1 percent of sales. This year's sales were $1,300,000.
i. Prepaid Rent has a balance of $5,550 for six months' rent paid in advance on March 1, 20X1.
j. The Supplies account in the general ledger has a balance of $330. A count of supplies on hand at June 30, 20X1, indicated $115
of supplies remain.
k. The company borrowed $10,000 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?
Complete this question by entering your answers in the tabs below.
Questions and its sub-questions:
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.)
View transaction list
1.
Record an adjusting entry for beginning inventory.
Record an adjusting entry for ending inventory.
3
Record an adjusting entry for seminar fees earned.
4
Record an adjusting entry for insurance expired.
Record an adjusting entry for depreciation.
Record an adjusting entry for wages owed.
7
Record an adjusting entry for payroll taxes owed.
8
Record an adjusting entry for uncollectible accounts.
Record an adjusting entry for rent.
10 Record an adjusting entry for supplies used.
11 Record an adjusting entry for interest.
Format: (1-11)
Journal entry worksheet
1
2
3 4 5
6
8
11
>
Record an adjusting entry for beginning inventory.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
а.
Final Sub-Question:
General
Journal
Analyze
After all adjusting entries have been journalized and posted, what is the balance of the Prepaid Rent account?
Prepaid rent, June 30, 20X1
Transcribed Image Text:Problem: a.-b. Merchandise Inventory, before adjustment, has a balance of $6,800. The newly counted inventory balance is $7,300. c. Unearned Seminar Fees has a balance of $5,300, 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 $7,800 for six months' insurance paid in advance on May 1, 20X1. e. Store equipment costing $17,710 was purchased on March 31, 20X1. It has a salvage value of $430 and a useful life of six years. f. Employees have earned $180 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, $5.40; FUTA, $1.08; Medicare, $2.61; and social security, $11.16. h. Management estimates uncollectible accounts expense at 1 percent of sales. This year's sales were $1,300,000. i. Prepaid Rent has a balance of $5,550 for six months' rent paid in advance on March 1, 20X1. j. The Supplies account in the general ledger has a balance of $330. A count of supplies on hand at June 30, 20X1, indicated $115 of supplies remain. k. The company borrowed $10,000 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? Complete this question by entering your answers in the tabs below. Questions and its sub-questions: 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.) View transaction list 1. Record an adjusting entry for beginning inventory. Record an adjusting entry for ending inventory. 3 Record an adjusting entry for seminar fees earned. 4 Record an adjusting entry for insurance expired. Record an adjusting entry for depreciation. Record an adjusting entry for wages owed. 7 Record an adjusting entry for payroll taxes owed. 8 Record an adjusting entry for uncollectible accounts. Record an adjusting entry for rent. 10 Record an adjusting entry for supplies used. 11 Record an adjusting entry for interest. Format: (1-11) Journal entry worksheet 1 2 3 4 5 6 8 11 > Record an adjusting entry for beginning inventory. Note: Enter debits before credits. Transaction General Journal Debit Credit а. Final Sub-Question: General Journal Analyze After all adjusting entries have been journalized and posted, what is the balance of the Prepaid Rent account? Prepaid rent, June 30, 20X1
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