Depreciation expense: studio equipmentIncome taxes expense8,800Adjusting and Closing Entries5,000Totals$248,210| $248,210Brushstroke Art Studio, Inc., provides quality instruction to aspiring artists. The businessadjusts its accounts monthly, but performs closing entries annually on December 31.This is the studio's unadjusted trial balance dated December 31, current year.Other Data1. Supplies on hand at December 31, current year, total $1,000.2. The studio pays rent quarterly (every three months). The last payment was madeNovember 1, current year. The next payment will be made early in February, nextBRUSHSTROKE ART STUDIO, INC.UNADJUSTED TRIAL BALANCEyear.DECEMBER 31, CURRENT YEAR3. Studio equipment is being depreciated over 120 months (10 years).4. On October 1, current year, the studio borrowed $24,000 by signing a 12-month,12 percent note payable. The entire amount, plus interest, is due on September 30,Debits |CreditsCash$22,380Client fees receivable71,250next year.Supplies6,0005. At December 31, current year, $3,000 of previously unearned client fees had beenPrepaid studio rent2,500earned.Studio equipment96,0006. Accrued, but unrecorded and uncollected client fees earned total $690 at DecembeAccumulated depreciation: studio equipment $52,000Accounts payable6,42031, current year.Note payable7. Accrued, but unrecorded and unpaid salary expense totals $750 at December 31,24,000Interest payable480current year.8. Accrued income taxes expense for the entire year ending December 31, currentyear, total $7,000. The full amount is due early in the next year.Unearned client fees8,000Income taxes payable5,000Capital stock50,000InstructionsRetained earnings20,0001. Prepare the necessary year-end closing entries.2. Prepare an after-closing trial balance.Client fees earned82,310Supplies expense4,000Salary expense17,250Fim do documentoInterest expense480Studio rent expense11,250Utilities expense3,300

What is meant by Closing Entries? Closing entries are the journal entries passed at the end of the…

Answered: Adjusting and Closing Entries…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Customer Refunds and Allowances Assume the following data for Lusk Inc. before its year-end adjustments: Sales fasthe year $3,600,000 Estimated percent of refunds for the year 0.8% Journalize the adjusting entry for customer refunds and allowances. If an amount box does not require an entry, leave it blank. 88 Sales v Customer Refunds Payable v Feedback Check My Work Sales are reduced by the estimated amount of customer refunds and allowances which are calculated based upon a percentage of sales. Pre Check My Work Subm Save and Exit Email Instructor
Entries for discounted note payable A business issued a 60-day note for $48,000 to a bank. The note was discounted at 7%. Assume a 360 days in a year. Question Content Area a. Journalize the entry to record the issuance of the note. If an amount box does not require an entry, leave it blank. If necessary, round your answers to one decimal place. blank Account Debit Credit - Select - - Select - - Select - - Select - - Select - - Select - Question Content Area b. Journalize the entry to record the payment of the note at maturity. If an amount box does not require an entry, leave it blank. blank Account Debit Credit - Select - - Select - - Select - - Select -
Brushstroke Art Studio, Inc., provides quality instruction to aspiring artists. The business adjusts its accounts monthly, but performs closing entries annually on December 31. This is the studio’s unadjusted trial balance dated December 31, current year. Other Data1. Supplies on hand at December 31, current year, total $1,000. 2. The studio pays rent quarterly (every three months). The last payment was made November 1, current year. The next payment will be made early in February, next year. 3. Studio equipment is being depreciated over 120 months (10 years). 4. On October 1, current year, the studio borrowed $24,000 by signing a 12-month, 12 percent note payable. The entire amount, plus interest, is due on September 30, next year. 5. At December 31, current year, $3,000 of previously unearned client fees had been earned. 6. Accrued, but unrecorded and uncollected client fees earned total $690 at December 31, current year. 7. Accrued, but unrecorded and unpaid salary expense totals…
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Identifying and Recording Customer Option for Additional Merchandise A large clothing retailer chain, Koll's, offers a sales incentive program where customers receive direct credit toward future purchases based upon the dollar amount of purchases today. For every $50 spent today, the customer will earn a $6 credit to be used at Koll's in two weeks. The credit expires 5 days after it becomes active. Not all customers will redeem the credit in the 5-day window of time. Based upon historical trends, Koll's estimates that 35% of the credits will be redeemed. a. Determine how many performance obligations are included in a sales transaction during the sales incentive program. Two performance obligations ◆ b. Assuming that Koll's sold $400,000 of merchandise (cost of $160,000) during the first day of the sales incentive period and 8,000, $6 credits were given, record the journal entry(ies) to record sales revenue. Assume all sales were cash sales. Note: Carry all decimals in calculations;…
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Entries for discounted note payable Instructions Chart of Accounts Instructions Journal A business issued a 45-day note for $84,000 to a creditor on account. The note was discounted at 9% Required: Journalize the entries to record (a) the issuance of the note on March 1 and (b) the payment of the note at maturity. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered Assume a 360-day year. Round your answers to nearest whole dollar.
Entries for notes payable Bennett Enterprises issues a $504,000, 30-day, 8 %, note to Spectrum Industries for merchandise inventory. Assume a 360-day year. If required, round your answers to the nearest dollar. If an amount box does not require an entry, leave it blank. Question Content Area a. Journalize Bennett Enterprises' entries to record: the issuance of the note. the payment of the note at maturity. 1. 2. Question Content Area b. Journalize Spectrum Industries' entries to record: the receipt of the note. the receipt of the payment of the note at maturity. 1. 2.
need help with full working and steps thanks answer in text Listed below are selected transactions of Solution Department Store for the current year ending December 31. a. On December 5, the store received $500 from the Jackson Players as a deposit to be returned after certain furniture to be used in stage production was returned on January 15. b. During December, cash sales totaled $798,000, which includes the 5% sales tax that must be remitted to the state by the fifteenth day of the following month. c. On December 10, the store purchased for cash three delivery trucks for $120,000. The trucks were purchased in a state that applies a 5% sales tax. d. The store determined it will cost $100,000 to restore the area (considered a land improvement) surrounding one of its store parking lots, when the store is closed in 2 years. Solution’s estimates the fair value of the obligation at December 31 is $84,000. Required: Prepare all the journal entries necessary to record the…
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Year-end adjusting journal entries Prepare budgetary and proprietary journal entries to record the following year-end adjustments: Note: If a journal entry is not required, select No entry as your answers and leave the Debit and Credit answers blank (zero). 4. The agency recorded depreciation of $25,000 on its equipment.
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