for each unit of Pa. The Store Supplies account had a $125 deblt balance at the beginning of the year, $560 of supplies were purchased during the year, nnd an inventory of unused store supplies at the year-end totaled $135. » b. An examinntion of insurance policies showed three policles, as follows:, Life of policy 1.... October 1 of previous year 3 years 2 years 1 year Policy Date of purchase Cost $720 480 2.... April 1 of current year 3.... August I of current yenr 180 Prepaid Insurance was debited for the cost of ench policy at the time af its purchase. Expired insurance was correctly recorded at the end of the previous year. A a The company's two office employees earn $40 per day and $50 per day, A respectively. They are paid ench Friday for a five-day workweek that begins on Monday. This year December 31 falls on Tuesday, and the employees both worked an Monday and Tuesday. id. The company owns a building that it completed and occupied for the first time on June 1 of the current year. The building cost $288,000, has an estimated 40-year life, and is not expected to have any salvage value at the end of that time. e. The company occupies most of the space in its building but it also rents space to two tenants. One tenant rented a small amount of space on Septem- ber 1 at $120 per month. The tenant paid the rent on the frst day of each month September through November, and the amounts paid were credited to Rent Earned. However, the tenant has not paid the rent for December, although on several occasions the tenant said the rent would be paid the next day. (f) The second tenant agreed on November 1 to rent a small armount of space at $150 per month, and on that date paid three months' rent in advance. The amount paid was credited to the Un- earned Rent account.
for each unit of Pa. The Store Supplies account had a $125 deblt balance at the beginning of the year, $560 of supplies were purchased during the year, nnd an inventory of unused store supplies at the year-end totaled $135. » b. An examinntion of insurance policies showed three policles, as follows:, Life of policy 1.... October 1 of previous year 3 years 2 years 1 year Policy Date of purchase Cost $720 480 2.... April 1 of current year 3.... August I of current yenr 180 Prepaid Insurance was debited for the cost of ench policy at the time af its purchase. Expired insurance was correctly recorded at the end of the previous year. A a The company's two office employees earn $40 per day and $50 per day, A respectively. They are paid ench Friday for a five-day workweek that begins on Monday. This year December 31 falls on Tuesday, and the employees both worked an Monday and Tuesday. id. The company owns a building that it completed and occupied for the first time on June 1 of the current year. The building cost $288,000, has an estimated 40-year life, and is not expected to have any salvage value at the end of that time. e. The company occupies most of the space in its building but it also rents space to two tenants. One tenant rented a small amount of space on Septem- ber 1 at $120 per month. The tenant paid the rent on the frst day of each month September through November, and the amounts paid were credited to Rent Earned. However, the tenant has not paid the rent for December, although on several occasions the tenant said the rent would be paid the next day. (f) The second tenant agreed on November 1 to rent a small armount of space at $150 per month, and on that date paid three months' rent in advance. The amount paid was credited to the Un- earned Rent account.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Solve this please it's from fundamental Accounting principal pleases solve it. thanks:)
Transcribed Image Text:8:43
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PROBLEMS
Problem 3-1
The following information for adjustments was available on December 31,
the end of a yearly necounting perlod. Prepare an adjusting Journal entry
for ench unit of information.
Pa. The Store Supplies account had a $125 debit balance at the begining of
the year, $560 of supplies were purchased during the year, nnd nn inventory
of unused store supplies at the year-end totaled $135.
> b. An examination of insurance policies showed three policles, as follows:.
Life of
policy
3 years
2 years
1 year
Date of purchase
Policy
1.... October 1 of previous year
2.... April 1 of current year
3.... August I of current yenr
Cost
$720
480
180
Prepaid Insurance was debited for the cost of ench policy at the time of
its purchase. Expired insurance was correctly recorded at the end of the
previous year.
A a The company's two office employees earn $40 per day and $50 per day, A
respectively. They are paid ench Friday for a five-day workweek that begins
on Monday, This year December 31 falls on Tuesday, and the employees
both worked an Monday and Tuesday.
id. The company owns a building that it completed and occupied for the frst
time on June 1 of the current year. The building cost $288,000, has an
estimated 40-year life, and is not expected to have any salvage value at
the end of that time.
e The company occupies most of the space in its building but it also rents
space to two tenants. One lenant rented a small amount of space on Septem-
ber 1 at $120 per month. The tenant paid the rent on the frst day of
each month September through November, and the amounts paid were
credited to Rent Earned. However, the 'tenant has not paid the rent for
December, although on several occasions the tenant said the rent would
be paid the next day. (f) The second tenant agreed on November 1 to
rent a small amount of space at $150 per month, and on that date paid
three months' rent in advance. The amount paid was credited to the Un-
earned Rent account.
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