Silas Company prepares accounts for accounting year end December 31. Prepare the appropriate adjusting entries for the year ended December 31, 2018 for the following items. a. Interest of $500 is accrued on a note receivable at December 31, 2018. b. Silas has three employees who each earn $160 per day. At December 31, four days' salaries have been earned but not paid. c. A customer paid Silas $16,000 on December 1 2008 for services to be rendered from December 1 through January 31, 2019. d. Silas purchased equipment costing $48,000 on January 1, 2017. Annual depreciation is $6000. e. Silas provided services to a customer in 2018 at a fee of $500. This fee has not yet been received or billed. f. Silas started the year with no supplies on hand. They purchased $6,000 in supplies during the year and have $2,000 on hand at December 31. g. Silas paid $12,000 for a three-year insurance policy on July 1, 2018, debiting an asset account at that time. h. Silas borrowed $20,000 by signing a 9% interest, note payable on November 1, 2018. i. Silas purchased short-term investments on November 1, 2018. Interest of $300 per month has been earned but not received prior to December 31.

Silas Company prepares accounts for accounting year end December 31. Prepare the appropriate adjusting entries for the year ended December 31, 2018 for the following items. a. Interest of $500 is accrued on a note receivable at December 31, 2018. b. Silas has three employees who each earn $160 per day. At December 31, four days' salaries have been earned but not paid. c. A customer paid Silas $16,000 on December 1 2008 for services to be rendered from December 1 through January 31, 2019. d. Silas purchased equipment costing $48,000 on January 1, 2017. Annual depreciation is $6000. e. Silas provided services to a customer in 2018 at a fee of $500. This fee has not yet been received or billed. f. Silas started the year with no supplies on hand. They purchased $6,000 in supplies during the year and have $2,000 on hand at December 31. g. Silas paid $12,000 for a three-year insurance policy on July 1, 2018, debiting an asset account at that time. h. Silas borrowed $20,000 by signing a 9% interest, note payable on November 1, 2018. i. Silas purchased short-term investments on November 1, 2018. Interest of $300 per month has been earned but not received prior to December 31.

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter21: Accounting For Accruals, Deferrals, And Reversing Entries

Section21.1: Accruals

Problem 1WT

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