Oklahoma Company has a fiscal year ending on December 31, 2015. The following information has been gathered so that the company could prepare adjustments: 1. The company had $6,000 of office supplies on hand on January 1, 2015, purchased $6,300 of supplies during the year, and had $1,200 of supplies were on hand on December 31, 2015. 2. On October 1, 2015, a two-year insurance premium of $24,000 was paid for coverage beginning on that date. The payment was recorded in the Prepaid Insurance account. 3. A delivery vehicle was purchased for $30,000 on May 1, 2015. Depreciation is estimated to be $3,000 per year or $250 per month. 4. The company rents some of its unused factory space to a small manufacturer. The lease required an advance payment of $36,000 for six months' rent on November 1, 2015, and the lease term began that day. The advance payment received from the tenant was recorded as Unearned Revenue when it was received. 5. Employees work five days per week and are paid $50,000 every other Friday; each pay period includes ten week days. The last payday during the company's fiscal year was properly recorded on Friday, December 26, 2015. The employees worked on December 29, 30, and 31, 2015; they will not be paid for that work until Friday, January 9, 2016. Required: (Please show calculations on the form provided for the journal
Oklahoma Company has a fiscal year ending on December 31, 2015. The following information has been gathered so that the company could prepare adjustments: 1. The company had $6,000 of office supplies on hand on January 1, 2015, purchased $6,300 of supplies during the year, and had $1,200 of supplies were on hand on December 31, 2015. 2. On October 1, 2015, a two-year insurance premium of $24,000 was paid for coverage beginning on that date. The payment was recorded in the Prepaid Insurance account. 3. A delivery vehicle was purchased for $30,000 on May 1, 2015. Depreciation is estimated to be $3,000 per year or $250 per month. 4. The company rents some of its unused factory space to a small manufacturer. The lease required an advance payment of $36,000 for six months' rent on November 1, 2015, and the lease term began that day. The advance payment received from the tenant was recorded as Unearned Revenue when it was received. 5. Employees work five days per week and are paid $50,000 every other Friday; each pay period includes ten week days. The last payday during the company's fiscal year was properly recorded on Friday, December 26, 2015. The employees worked on December 29, 30, and 31, 2015; they will not be paid for that work until Friday, January 9, 2016. Required: (Please show calculations on the form provided for the journal
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Oklahoma Company has a fiscal year ending on December 31, 2015. The
following information has been gathered so that the company could prepare
adjustments:
1. The company had $6,000 of office supplies on hand on January 1, 2015,
purchased $6,300 of supplies during the year, and had $1,200 of supplies
were on hand on December 31, 2015.
2. On October 1, 2015, a two-year insurance premium of $24,000 was paid for
coverage beginning on that date. The payment was recorded in the Prepaid
Insurance account.
3. A delivery vehicle was purchased for $30,000 on May 1, 2015. Depreciation
is estimated to be $3,000 per year or $250 per month.
4. The company rents some of its unused factory space to a small
manufacturer. The lease required an advance payment of $36,000 for six
months' rent on November 1, 2015, and the lease term began that day. The
advance payment received from the tenant was recorded as Unearned
Revenue when it was received.
5. Employees work five days per week and are paid $50,000 every other
Friday; each pay period includes ten week days. The last payday during the
company's fiscal year was properly recorded on Friday, December 26, 2015.
The employees worked on December 29, 30, and 31, 2015; they will not be
paid for that work until Friday, January 9, 2016.
Required: (Please show calculations on the form provided for the journal
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