Question: Record an adjusting entry for beginning inventory in a general journal format for the following: • a.–b. Merchandise Inventory, before adjustment, has a balance of $8,800. The newly counted inventory balance is $9,300.• c. Unearned Seminar Fees has a balance of $5,500, 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 $13,200 for six months’ insurance paid in advance on May 1, 20X1.• e. Store equipment costing $6,530 was purchased on March 31, 20X1. It has a salvage value of $530 and a useful life of five years.• f. Employees have earned $280 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, $8.40; FUTA, $1.68; Medicare, $4.06; and social security, $17.36.• h. Management estimates uncollectible accounts expense at 1 percent of sales. This year’s sales were $2,350,000.• i. Prepaid Rent has a balance of $9,750 for six months’ rent paid in advance on March 1, 20X1.• j. The Supplies account in the general ledger has a balance of $550. A count of supplies on hand at June 30, 20X1, indicated $165 of supplies remain.• k. The company borrowed $4,800 from Second Bancorp on June 1, 20X1, and issued a four-month note. The note bears interest at 6 percent.
Question: Record an
• a.–b. Merchandise Inventory, before adjustment, has a balance of $8,800. The newly counted inventory balance is $9,300.
• c. Unearned Seminar Fees has a balance of $5,500, 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 $13,200 for six months’ insurance paid in advance on May 1, 20X1.
• e. Store equipment costing $6,530 was purchased on March 31, 20X1. It has a salvage value of $530 and a useful life of five years.
• f. Employees have earned $280 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, $8.40; FUTA, $1.68; Medicare, $4.06; and social security, $17.36.
• h. Management estimates uncollectible accounts expense at 1 percent of sales. This year’s sales were $2,350,000.
• i. Prepaid Rent has a balance of $9,750 for six months’ rent paid in advance on March 1, 20X1.
• j. The Supplies account in the general ledger has a balance of $550. A count of supplies on hand at June 30, 20X1, indicated $165 of supplies remain.
• k. The company borrowed $4,800 from Second Bancorp on June 1, 20X1, and issued a four-month note. The note bears interest at 6 percent.
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