Information on adjusting entries: (1) Music instruments were depreciated by straight-line method over an estimated useful life of 5 years with no residual value. (2) The Company paid a full year insurance started on 1 January 2019. No adjusting entries have been made since 1 November 2019. (3) On 31 December 2019, the Company received payment of $45,000 from Tim for individual training packages that will start in January 2020. No entries were made. (4) Accrued but unrecorded and uncollected course fees earned at 31 December 2019 amounted to $17,100. (5) Mandy paid in advance for individual training packages of $15,000 in October 2019 had completed the training in December 2019. (6) Supplies on hand on 31 December 2019 were $1,500. (7) There was an unrecorded and unpaid salary of $16,500 earned by an instructor for December 2019. (8) The 6% 6-month note payable was made on 1 July 2019. The entire note plus all the accrued interest was due and paid on 31 December 2019. No entries were recorded for December’s adjustment and repayment transactions. (9) On 31 December 2019, the Company declared a dividend of $0.5 per share and 80% was paid on the same day. The remaining balance will be paid on 1 February 2020. No entries were recorded. (10) OneoftheshareholdersoftheCompanysoldallhis3,000sharesat$150persharetohisfriend on 31 December 2019. Required: (a) Prepare the necessary adjusting journal entries on 31 December 2019 so as to bring the financial records of the Company up-to-date. Use the account titles given in the Trial Balance where appropriate. Show your workings. Explanations are NOT required. If no adjusting entries are required, state “No entry” and name the accounting principle applied.
Information on adjusting entries: (1) Music instruments were depreciated by straight-line method over an estimated useful life of 5 years with no residual value. (2) The Company paid a full year insurance started on 1 January 2019. No adjusting entries have been made since 1 November 2019. (3) On 31 December 2019, the Company received payment of $45,000 from Tim for individual training packages that will start in January 2020. No entries were made. (4) Accrued but unrecorded and uncollected course fees earned at 31 December 2019 amounted to $17,100. (5) Mandy paid in advance for individual training packages of $15,000 in October 2019 had completed the training in December 2019. (6) Supplies on hand on 31 December 2019 were $1,500. (7) There was an unrecorded and unpaid salary of $16,500 earned by an instructor for December 2019. (8) The 6% 6-month note payable was made on 1 July 2019. The entire note plus all the accrued interest was due and paid on 31 December 2019. No entries were recorded for December’s adjustment and repayment transactions. (9) On 31 December 2019, the Company declared a dividend of $0.5 per share and 80% was paid on the same day. The remaining balance will be paid on 1 February 2020. No entries were recorded. (10) OneoftheshareholdersoftheCompanysoldallhis3,000sharesat$150persharetohisfriend on 31 December 2019. Required: (a) Prepare the necessary adjusting journal entries on 31 December 2019 so as to bring the financial records of the Company up-to-date. Use the account titles given in the Trial Balance where appropriate. Show your workings. Explanations are NOT required. If no adjusting entries are required, state “No entry” and name the accounting principle applied.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Information on adjusting entries :
(1) Music instruments were depreciated by straight-line method over an estimated useful life of 5 years with no residual value.
(2) The Company paid a full year insurance started on 1 January 2019. No adjusting entries have been made since 1 November 2019.
(3) On 31 December 2019, the Company received payment of $45,000 from Tim for individual training packages that will start in January 2020. No entries were made.
(4) Accrued but unrecorded and uncollected course fees earned at 31 December 2019 amounted to $17,100.
(5) Mandy paid in advance for individual training packages of $15,000 in October 2019 had completed the training in December 2019.
(6) Supplies on hand on 31 December 2019 were $1,500.
(7) There was an unrecorded and unpaid salary of $16,500 earned by an instructor for December 2019.
(8) The 6% 6-month note payable was made on 1 July 2019. The entire note plus all the accrued interest was due and paid on 31 December 2019. No entries were recorded for December’s adjustment and repayment transactions.
(9) On 31 December 2019, the Company declared a dividend of $0.5 per share and 80% was paid on the same day. The remaining balance will be paid on 1 February 2020. No entries were recorded.
(10) OneoftheshareholdersoftheCompanysoldallhis3,000sharesat$150persharetohisfriend on 31 December 2019.
Required:
(a) Prepare the necessary adjusting journal entries on 31 December 2019 so as to bring the financial records of the Company up-to-date. Use the account titles given in the Trial Balance where appropriate. Show your workings. Explanations are NOT required. If no adjusting entries are required, state “No entry” and name the accounting principle applied.
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