Problem 12.1A (Algo) Recording adjustments for accrued and prepaid items and unearned income. LO 12-2, 12-3 a.-b. Merchandise Inventory, before adjustment, has a balance of $7,400. The newly counted inventory balance is $7.900. c. Unearned Seminar Fees has a balance of $5,900, 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 $11,400 for six months' insurance paid in advance on May 1, 20X1. e. Store equipment costing $13,450 was purchased on March 31, 20X1. It has a salvage value of $490 and a useful life of six years. f. Employees have earned $240 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, $7.20; FUTA, $1.44; Medicare, $3.48; and social security, $14.88. h. Management estimates uncollectible accounts expense at 1 percent of sales. This year's sales were $1,900,000. i. Prepaid Rent has a balance of $6,450 for six months' rent paid in advance on March 1, 20X1. J. The Supplies account in the general ledger has a balance of $390. A count of supplies on hand at June 30, 20X1, indicated $145 of supplies remain. k. The company borrowed $8,800 from Second Bancorp on June 1, 20x1, and issued a four-month note. The note bears interest at 6 percent. Required: Based on the information above, record the adjusting journal entries that must be made for Sufen Consulting on June 30, 20X1. The company has a June 30 fiscal year-end. Analyze: After all adjusting entries have been journalized and posted, what is the balance of the Prepaid Rent account? Complete this question by entering your answers in the tabs below.
Problem 12.1A (Algo) Recording adjustments for accrued and prepaid items and unearned income. LO 12-2, 12-3 a.-b. Merchandise Inventory, before adjustment, has a balance of $7,400. The newly counted inventory balance is $7.900. c. Unearned Seminar Fees has a balance of $5,900, 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 $11,400 for six months' insurance paid in advance on May 1, 20X1. e. Store equipment costing $13,450 was purchased on March 31, 20X1. It has a salvage value of $490 and a useful life of six years. f. Employees have earned $240 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, $7.20; FUTA, $1.44; Medicare, $3.48; and social security, $14.88. h. Management estimates uncollectible accounts expense at 1 percent of sales. This year's sales were $1,900,000. i. Prepaid Rent has a balance of $6,450 for six months' rent paid in advance on March 1, 20X1. J. The Supplies account in the general ledger has a balance of $390. A count of supplies on hand at June 30, 20X1, indicated $145 of supplies remain. k. The company borrowed $8,800 from Second Bancorp on June 1, 20x1, and issued a four-month note. The note bears interest at 6 percent. Required: Based on the information above, record the adjusting journal entries that must be made for Sufen Consulting on June 30, 20X1. The company has a June 30 fiscal year-end. Analyze: After all adjusting entries have been journalized and posted, what is the balance of the Prepaid Rent account? Complete this question by entering your answers in the tabs below.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Problem 12.1A (Algo) Recording adjustments for accrued and prepaid items and unearned income. LO
12-2, 12-3
a.-b. Merchandise Inventory, before adjustment, has a balance of $7,400. The newly counted inventory balance is $7.900.
c. Unearned Seminar Fees has a balance of $5,900, 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 $11,400 for six months' insurance paid in advance on May 1, 20X1.
e. Store equipment costing $13,450 was purchased on March 31, 20X1. It has a salvage value of $490 and a useful life of six years.
f. Employees have earned $240 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, $7.20; FUTA, $1.44; Medicare, $3.48; and
social security, $14.88.
h. Management estimates uncollectible accounts expense at 1 percent of sales. This year's sales were $1,900,000.
i. Prepaid Rent has a balance of $6,450 for six months' rent paid in advance on March 1, 20X1.
j. The Supplies account in the general ledger has a balance of $390. A count of supplies on hand at June 30, 20X1, indicated $145
of supplies remain.
k. The company borrowed $8,800 from Second Bancorp on June 1, 20X1, and issued a four-month note. The note bears interest at
6 percent.
Required:
Based on the information above, record the adjusting journal entries that must be made for Sufen Consulting on June 30, 20x1. The
company has a June 30 fiscal year-end.
Analyze:
After all adjusting entries have been journalized and posted, what is the balance of the Prepaid Rent account?
Complete this question by entering your answers in the tabs below.
Transcribed Image Text:Complete this question by entering your answers in the tabs below.
General
Journal
Analyze
Based on the information above, record the adjusting journal entries that must be made for Sufen Consulting on June 30, 20X1. The
company has a June 30 fiscal year-end. (Round your final answers to 2 decimal places.)
View transaction list
Journal entry worksheet
<
Record an adjusting entry for beginning inventory.
Note: Enter debits before credits.
Transaction
6
General Journal
8
Debit
*****
11
Credit
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