Adjusting Entries: At the end of August 2023, the following additional information is available: a. The company's insurance coverage is provided by a single comprehensive 12-month policy that began on March 1, 2023. b. Supplies on hand total $2,850. c. The building has an estimated useful life of 50 years. Assume straight-line depreciation method used. d. The furniture has an estimated useful life of 10 years. Assume straight-line depreciation method used. e. The equipment has an estimated useful life of 20 years. Assume straight-line depreciation method used. f. Interest of $250 on the bank loan for the month of August will be paid on September 1, when the regular $350 payment is made. g. A review of the unadjusted balance in the unearned commissions revenue account indicates the unearned balance should be $450. h. A review of the unadjusted balance in the subscription revenue account reveals that $2,000 has not been earned. i. Salaries that have been earned by employees in August but are not due to be paid to them until the next payday (in September) amount to $325.
Adjusting Entries: At the end of August 2023, the following additional information is available: a. The company's insurance coverage is provided by a single comprehensive 12-month policy that began on March 1, 2023. b. Supplies on hand total $2,850. c. The building has an estimated useful life of 50 years. Assume straight-line depreciation method used. d. The furniture has an estimated useful life of 10 years. Assume straight-line depreciation method used. e. The equipment has an estimated useful life of 20 years. Assume straight-line depreciation method used. f. Interest of $250 on the bank loan for the month of August will be paid on September 1, when the regular $350 payment is made. g. A review of the unadjusted balance in the unearned commissions revenue account indicates the unearned balance should be $450. h. A review of the unadjusted balance in the subscription revenue account reveals that $2,000 has not been earned. i. Salaries that have been earned by employees in August but are not due to be paid to them until the next payday (in September) amount to $325.
Adjusting Entries: At the end of August 2023, the following additional information is available: a. The company's insurance coverage is provided by a single comprehensive 12-month policy that began on March 1, 2023. b. Supplies on hand total $2,850. c. The building has an estimated useful life of 50 years. Assume straight-line depreciation method used. d. The furniture has an estimated useful life of 10 years. Assume straight-line depreciation method used. e. The equipment has an estimated useful life of 20 years. Assume straight-line depreciation method used. f. Interest of $250 on the bank loan for the month of August will be paid on September 1, when the regular $350 payment is made. g. A review of the unadjusted balance in the unearned commissions revenue account indicates the unearned balance should be $450. h. A review of the unadjusted balance in the subscription revenue account reveals that $2,000 has not been earned. i. Salaries that have been earned by employees in August but are not due to be paid to them until the next payday (in September) amount to $325.
The objective of the question is to prepare the adjusting entries for the given scenarios.
Transcribed Image Text:Adjusting Entries:
At the end of August 2023, the following additional information is available:
a. The company's insurance coverage is provided by a single comprehensive 12-month
policy that began on March 1, 2023.
b.
Supplies on hand total $2,850.
c. The building has an estimated useful life of 50 years. Assume straight-line depreciation
method used.
d. The furniture has an estimated useful life of 10 years. Assume straight-line depreciation
method used.
e. The equipment has an estimated useful life of 20 years. Assume straight-line
depreciation method used.
f. Interest of $250 on the bank loan for the month of August will be paid on September 1,
when the regular $350 payment is made.
g. A review of the unadjusted balance in the unearned commissions revenue account
indicates the unearned balance should be $450.
h. A review of the unadjusted balance in the subscription revenue account reveals that
$2,000 has not been earned.
i. Salaries that have been earned by employees in August but are not due to be paid to
them until the next payday (in September) amount to $325.
Definition Definition Entries made at the end of every accounting period to precisely replicate the expenses and revenue of the current period. This is also known as end of period adjustment. It can also refer to financial reporting that corrects errors made previously in the accounting period. Every adjustment entry affects at least one real account and one nominal account.
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