Adjusting entries.4-3.Enter the correct adjusting entries in the journal provided. All entries are at the end of theaccounting period. If no entry is needed, write "NONE." (Sure, go ahead and use allcapitals if you want.)Depreciation expense for the month on the building is $2,000.a.A count of the Supplies account indicates that supplies of $450 have been used.b.Two months have passed since insurance for the year was paid. The amount ofthe check was $1,200. The entry at time of payment debited the Prepaidc.Insurance account.Employees have earned $400 since the last pay day of the month.d.Advertising in the local paper was paid this month in the amount of $500. Theamount was debited to Prepaid Advertising, and the advertisement is to run nexte.month.Joe Moreland paid us $500 in advance for work to be done on his residence. Theentry to record the collection of this cash included a credit to Labor Revenue. Thework is halfway complete at the end of this month.f.General JournalPostDateDebit2000CreditRef.Description2000

Answered: Image /qna-images/answer/bc2b3ce4-bd51-4940-bf64-d7adaf908028.jpg

Answered: Adjusting entries. 4-3. Enter 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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If a company placed a building into service on December 25, what is the number of months of depreciation allowed in the current year? (Round answer to 1 decimal place, e.g. 15.2.) Number of months
Your staff person has provided you with the following journal entry for January 20x1 depreciation. The monthly deprecation is supposed to be $100.00. What is wrong with this entry?
Read the following case and record the transactions and the corresponding adjustment entries: At Caribe Music, a company dedicated to the sale of music equipment, there have been the following transactions and adjustments in the past two years. The transactions are related to the use of the shipping equipment. The depreciation method was the double declining balance. First year Transacción February 6 A used delivery truck was purchased in cash for $35,000. July 7 $700 was paid in truck repairs. December 31 Records the depreciation of the truck for the calendar year. The truck had a lifespan of 3 years. The truck had a residual of $4,500. Second year January 8 A new truck was purchased in cash for $52,000. June 10 Maintenance and repairs were performed on the truck for $625. July 9 $300 was paid for repairs to the used truck that was purchased the first year. September 19 The truck that was purchased in the first year was sold for…
The following transactions and adjusting entries were completed by Legacy Furniture Co. during a three-year period. All are related to the use of delivery equipment. The double-declining-balance method of depreciation is used. Year 1 Jan. 4. Purchased a used delivery truck for $27,200, paying cash. Nov. 2. Paid garage $630 for miscellaneous repairs to the truck. Dec. 31. Recorded depreciation on the truck for the year. The estimated useful life of the truck is four years, with a residual value of $5,005 for the truck. Year 2 Jan. 6. Purchased a new truck for $49,250, paying cash. Apr. 1. Sold the used truck for $14,670. (Record depreciation to date in Year 2 for the truck.) June 11. Paid garage $450 for miscellaneous repairs to the truck. Dec. 31. Record depreciation for the new truck. It has an estimated residual value of $8,950 and an estimated life of five years. Year 3 July 1. Purchased a new truck for $53,920, paying cash. Oct. 2. Sold the truck…
The following transactions and adjusting entries were completed by Legacy Furniture Co. during a 3-year period. All are related to the use of delivery equipment. The double-declining-balance method of depreciation is used. Year 1 Jan. 4. Purchased a used delivery truck for $27,680, paying cash. Nov. 2. Paid garage $725 for miscellaneous repairs to the truck. Dec. 31. Recorded depreciation on the truck for the year. The estimated useful life of the truck is 4 years, with a residual value of $4,900 for the truck. Year 2 Jan. 6. Purchased a new truck for $49,850, paying cash. Apr. 1. Sold the used truck for $15,050. (Record depreciation to date in Year 2 for the truck.) June 11. Paid garage $450 for miscellaneous repairs to the truck. Dec. 31. Record depreciation for the new truck. It has an estimated residual value of $9,185 and an estimated life of 5 years. Year 3 July 1. Purchased a new truck for $53,640, paying cash. Oct. 2. Sold the truck purchased…
Adjusting entries. 4-5. For each of the following adjusting entries, identify whether the entry is correct. If it is not correct, provide the correct entry in the journal on the next page and specny why the entry given below is wrong. Depreciation Expense a. 1,500 Accumulated Depreciation 1,500 To record depreciation on trucks for one year. The trucks cost $30,000 and have no salvage value. They are being depreciated straight line over six years. Interest Revenue b. 730 Interest Receivable 730 To record one year's interest on a loan to an officer of the company. The loan was for $10,000 at 7% interest. Supplies Expense Supplies C. 563 563 The Supplies account started with a balance of $1,900. At the end of the period, a count of remaining supplies indicated we had $563 left. 1,900 Wages Expense Wages Payable d. 1,900 Employees have earned $1,900 since last payday. 700 Taxes Payable e. 700 Taxes Expense The company received a bill from the County Treasurer for $700 for property taxes.…
Required information [The following information applies to the questions displayed below.] a. Depreciation on the company's wind turbine equipment for the year is $5,300. b. The Prepaid Insurance account for the solar panels had a $2,300 debit balance at December 31 before adjusting for the costs of any expired coverage. Analysis of prepaid insurance shows that $750 of unexpired insurance coverage remains at year-end. c. The company received $3,900 cash in advance for sustainability consulting work. As of December 31, one-third of the sustainability consulting work had been performed. d. As of December 31, $1,500 in wages expense for the organic produce workers has been incurred but not yet paid. e. As of December 31, the company has earned, but not yet recorded, $430 of interest revenue from investments in socially responsible bonds. The interest revenue is expected to be received on January 12. or each of the above separate cases, prepare the required December 31 year-end adjusting…
The following transactions and adjusting entries were completed by Legacy Furniture Co. during a three-year period. All are related to the use of delivery equipment. The double-declining-balance method of depreciation is used. Year 1 Jan. 4 Purchased a used delivery truck for $15,360, paying cash. Nov. 2 Paid garage $240 for miscellaneous repairs to the truck. Dec. 31 Recorded depreciation on the truck for the year. The estimated useful life of the truck is 4 years, with a residual value of $3,200 for the truck. Year 2 Jan. 6 Purchased a new truck for $9,000, paying cash. Apr. 1 Sold the used truck purchased on Jan. 4 of Year 1 for $6,270. (Record depreciation to date in Year 2 for the truck.) June 11 Paid garage $260 for miscellaneous repairs to the truck. Dec. 31 Record depreciation for the new truck. It has an estimated residual value of $1,600 and an estimated life of 5 years. Year 3 July 1 Purchased a new truck for $88,000, paying cash. Oct. 2 Sold the truck purchased January 6,…
The ledger of Hillsboro Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared. Assume no adjusting entries were made in Januaray or February either. Prepaid Insurance Supplies Equipment Accumulated Depreciation- Equipment Notes Payable Unearned Rent Revenue Rent Revenue Interest Expense Salaries and Wages Expense Debit $ 3,600 3,053 26,200 -0- 15,330 Credit $ 8,921 20,600 7,500 54,170
Current Attempt in Progress At the end of its first year, the trial balance of Teal Company shows Equipment of $47,200 and zero balances in Accumulated Depreciation-Equipment and Depreciation Expense. Depreciation for the year is estimated to be $5,900. Prepare the adjusting entry for depreciation at December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.) Date Account Titles and Explanation Dec. 31 Post the adjustments to T accounts. Accumulated Depreciation-Equipment Carrying amount Depreciation Expense Indicate the balance sheet presentation of the equipment at December 31. TEAL COMPANY Balance Sheet (partial) $ Debit Credit

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