Prepare the following adjusting entries for Brown's company in May 2020: 1). May 7 Brown's company received an advance of $25,000 and by the end of May had completed its work with a nominal value of $20,000 2). On May 10, the company paid $13,000 for prepaid advertising for 5 months. 3). April 8 Brown Company pays $10,000 of insurance for 5 years. But insurance cover starts on May 1, 2020. 4). Brown's company entered into a note loan signed in early May 2020 with a value of $15,000 at 7% interest and maturing in 2 years. 5). May 30, the company has not recorded service revenue of $5,000 6). As of May 31, 2020, the company has not paid the salaries of 2 employees. However, these 2 employees did overtime throughout May, where they normally work 5x a week but they work 7x a week with 3 hours of overtime Their overtiime costs $7.500/hour.
Prepare the following adjusting entries for Brown's company in May 2020: 1). May 7 Brown's company received an advance of $25,000 and by the end of May had completed its work with a nominal value of $20,000 2). On May 10, the company paid $13,000 for prepaid advertising for 5 months. 3). April 8 Brown Company pays $10,000 of insurance for 5 years. But insurance cover starts on May 1, 2020. 4). Brown's company entered into a note loan signed in early May 2020 with a value of $15,000 at 7% interest and maturing in 2 years. 5). May 30, the company has not recorded service revenue of $5,000 6). As of May 31, 2020, the company has not paid the salaries of 2 employees. However, these 2 employees did overtime throughout May, where they normally work 5x a week but they work 7x a week with 3 hours of overtime Their overtiime costs $7.500/hour.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Prepare the following adjusting entries for Brown's company in May
2020:
1). May 7 Brown's company received an advance of $25,000 and by
the end of May had completed its work with a nominal value of
$20,000
2). On May 10, the company paid $13,000 for prepaid advertising for
5 months.
3). April 8 Brown Company pays $10,000 of insurance for 5 years.
But insurance cover starts on May 1, 2020.
4). Brown's company entered into a note loan signed in early May
2020 with a value of $15,000 at 7% interest and maturing in 2 years.
5). May 30, the company has not recorded service revenue of $5,000
6). As of May 31, 2020, the company has not paid the salaries of 2
employees. However, these 2 employees did overtime throughout
May, where they normally work 5x a week but they work 7x a week
with 3 hours of overtime, Their overtime costs $7,500/hour.
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