Adjusting EntriesOn May 31, the following data were accumulated to assist the accountantpreparingthe adjusting entries for Oceanside Realty:• Fees accrued but unbilled at May 31 are $8,640.• The supplies account balance on May 31 is $2,840. The supplies on hand at May 31are $810.• Wages accrued but not paid at May 31 are $1,090.• The unearned rent account balance at May 31 is $8,460, representing the receipt ofan advance payment on May 1 of three months' rent from tenants.• Depreciation of office equipment is $1,440.Required:1. Journalize the adjusting entries required at May 31. 2. What is the difference between adjusting entries and correcting entries?a. Both adjusting entries and correcting entries are a planned part of the accountingprocess.b. Adjusting entries are a planned part of the accounting process, correcting entriesare not planned but arise when necessary to correct errors.C. Both adjusting entries and correcting entries are not a planned part of theaccounting process.d. Correcting entries are a planned part of the accounting process, adjusting entriesare not planned but arise when necessary to adjust errors.

Adjusting entries: Adjusting entries are those entries that are recorded at the end of the year, to…

Answered: Adjusting Entries On May 31, the…

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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On June 1, 2012, Monarch Co. received $25,160 for the rent of land for 12 months. Journalize the adjusting entry required for unearned rent on December 31, 20Y2. Assume no previous adjustment has been made to Unearned Revenue during the year. Round your answers to the nearest dollar amount. If an amount box does not require an entry, leave it blank.
On January 2, Good Dog Mart prepaid $22,080 rent for the year and recorded the prepayment in an asset account. Journalize the January 31 adjusting entry for rent expense. If an amount box does not require an entry, leave it blank. January 31
Prepare the adjusting entries for the following situations:A. The supplies account balance on December 31, 2021 is $1,475. Actual supplies on hadat the end of the year was 350. Prepare the adjusting entry.B. Depreciation for the year is $7,200. Please prepare the adjusting entry.C. Fees earned but not yet billed totaled $23,750.D. Wages accrued but not paid at year end was $15,680.E. Unearned revenue had a balance of $6,900, at the end of the year you have earned$4,300. Please make the adjusting entry. 2. After the accounts have been adjusted at January 31, the end of the year, the followingbalances are taken from the ledger of Harrison's Dog Walking Service Company: Harrison Taylor, Capital $349,000Harrison Taylor, Drawing 6,000Fees Earned 124,600Wages Expense 29,000Rent Expense 43,000Supplies Expense 7,300Miscellaneous Expense 5,700
The information necessary for preparing the 2021 year-end adjusting entries for Gamecock Advertising Agency appears below. Gamecock’s fiscal year-end is December 31. 1. On July 1, 2021, Gamecock receives $6,000 from a customer for advertising services to be given evenly over the next 10 months. Gamecock credits Deferred Revenue. 2. At the beginning of the year, Gamecock’s depreciable equipment has a cost of $28,000, a four-year life, and no salvage value. The equipment is depreciated evenly (straight-line depreciation method) over the four years. 3. On May 1, 2021, the company pays $4,800 for a two-year fire and liability insurance policy and debits Prepaid Insurance. 4. On September 1, 2021, the company borrows $20,000 from a local bank and signs a note. Principal and interest at 12% will be paid on August 31, 2022. 5. At year-end there is a $2,700 debit balance in the Supplies (asset) account. Only $1,000 of supplies remains on hand.Required: Record the necessary adjusting entries on…
On June 1, 20Y2, Herbal Co. received $33,600 for the rent land for 12 months. Journalize the adjusting entry required for uneared rent on December 31, 20Y2. Refer to the Chart of Accounts for exact wording of account titles.
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At December 31, the unadjusted trial balance of H&R Tacks reports Equipment of $25,500 and zero balances in Accumulated Depreciation and Depreciation Expense. Depreciation for the period is estimated to be $5,100. Required: 1. Prepare the adjusting journal entry on December 31. 2. Post the beginning balances and adjusting entries to the following T-accounts. Complete this question by entering your answers in the tabs below. Required 11 Required 2 Post the beginning balances and adjusting entries to the following T-accounts. Accumulated Depreciation Beginning Balance Debit Ending Balance Credit Answer is not complete. 5,100 5,100 Beginning Balance Debit Ending Balance Credit
Journalize the adjusting entries and post to the general ledger - Adjusting entries: 1. Expired insurance for the period $500 2.Accrued salary expense ( earned but not paid ) owed to Sophia LeBron,$5600. (Credit Salaries Payable. Payroll taxes are not considered in this entry. 3.Provision for uncollectible accounts estimated at 3.0% of March creadit sales,$927
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The prepaid insurance account had a beginning balance of $3,755 and was debited for $6,755 of premiums paid during the year. Journalize the adjusting entry required at the end of the year, assuming the amount of unexpired insurance related to future periods is $2,640. Refer to the Chart of Accounts for exact wording of account titles.
Marsteller Properties Inc. owns apartments that it rents to university students. At December 31,2019, the following unadjusted account balances were available: The following information is available for adjusting entries:a. An analysis of apartment rental contracts indicates that $3,800 of apartment rent is unbilledand unrecorded at year end.b. A physical count of supplies reveals that $1,400 of supplies are on hand at December 31, 2019.c. Annual depreciation on the buildings is $204,250.d. An examination of insurance policies indicates that $12,000 of the prepaid insurance applies to coverage for 2019.e. Six months’ interest at 9% is unrecorded and unpaid on the notes payable. f. Wages in the amount of $6,100 are unpaid and unrecorded at December 31.g. Utilities costs of $300 are unrecorded and unpaid at December 31.h. Income taxes of $5,738 are unrecorded…
On December 31, the following data were accumulated for preparing the adjusting entries for Flagship Realty: • The supplies account balance on December 31 is $5,450. The supplies on hand on December 31 are $1,460. • The unearned rent account balance on December 31 is $4,700 representing the receipt of an advance payment on December 1 of five months’ rent from tenants. • Wages accrued but not paid at December 31 are $2,375. • Fees earned but unbilled at December 31 are $18,920. • Depreciation of office equipment is $4,965. Required: 1. Journalize the adjusting entries required at December 31. 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. 2. What is the difference between adjusting entries and correcting entries?…

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