general journal Required: Based on the information above, record the adjusting journal entries that must be made for Ambriz Distributors on June 30, 20X1. The company has a June 30 fiscal year-end. a.–b. Merchandise Inventory, before adjustment, has a balance of $6,800. The newly counted inventory balance
general journal
Required:
Based on the information above, record the
a.–b. Merchandise Inventory, before adjustment, has a balance of $6,800. The newly counted inventory balance is $7,300.
c. Unearned Seminar Fees has a balance of $5,300, representing prepayment by customers for five seminars to be conducted in June, July, and August 20X1. Two seminars had been conducted by June 30, 20X1.
d. Prepaid Insurance has a balance of $7,800 for six months’ insurance paid in advance on May 1, 20X1.
e. Store equipment costing $17,710 was purchased on March 31, 20X1. It has a salvage value of $430 and a useful life of six years.
f. Employees have earned $180 that has not been paid at June 30, 20X1.
g. The employer owes the following taxes on wages not paid at June 30, 20X1: SUTA, $5.40; FUTA, $1.08; Medicare, $2.61; and social security, $11.16.
h. Management estimates uncollectible accounts expense at 1 percent of sales. This year’s sales were $1,300,000.
i. Prepaid Rent has a balance of $5,550 for six months’ rent paid in advance on March 1, 20X1.
j. The Supplies account in the general ledger has a balance of $330. A count of supplies on hand at June 30, 20X1, indicated $115 of supplies remain.
k. The company borrowed $10,000 from Second Bancorp on June 1, 20X1, and issued a four-month note. The note bears interest at 6 percent.
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