The following information is available for ABC Inc. on April 30 for the year just ended. a. Unpaid and unrecorded salaries at year-end totalled $32,000. b. $1,020 of interest has accrued on a note payable and is unrecorded. c. The yearly depreciation on the building is $450. d. A review of the $10,000 unadjusted balance in the prepaid insurance account shows a remaining balance of $6,500 at the end of the year. e. Of the $6,500 rent paid to ABC Inc. in advance, $5,750 has not yet been earned. 1. ABC Inc. purchased equipment in a previous year for $21,250 and plans to sell this equipment for $1,625 at the end of its five-year useful life. g. $2,500 of advertising ABC Inc. placed in the local newspaper is unrecorded and unpaid. h. The estimated yearly depreciation on the furniture is $250. 1. $2,350 of the television advertising paid for in advance has been used. J. A review of the $21,000 unadjusted balance in the prepaid rent account shows a remaining balance of $19,750 at the end of the year. Prepare the required adjusting entries at April 30, 2014. Enter the transaction letter as the description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (Le, January 15 woul General Journal Account/Explanation Page GJB Credit Date 30/00 Salation Expense F Debit (92 000)
The following information is available for ABC Inc. on April 30 for the year just ended. a. Unpaid and unrecorded salaries at year-end totalled $32,000. b. $1,020 of interest has accrued on a note payable and is unrecorded. c. The yearly depreciation on the building is $450. d. A review of the $10,000 unadjusted balance in the prepaid insurance account shows a remaining balance of $6,500 at the end of the year. e. Of the $6,500 rent paid to ABC Inc. in advance, $5,750 has not yet been earned. 1. ABC Inc. purchased equipment in a previous year for $21,250 and plans to sell this equipment for $1,625 at the end of its five-year useful life. g. $2,500 of advertising ABC Inc. placed in the local newspaper is unrecorded and unpaid. h. The estimated yearly depreciation on the furniture is $250. 1. $2,350 of the television advertising paid for in advance has been used. J. A review of the $21,000 unadjusted balance in the prepaid rent account shows a remaining balance of $19,750 at the end of the year. Prepare the required adjusting entries at April 30, 2014. Enter the transaction letter as the description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (Le, January 15 woul General Journal Account/Explanation Page GJB Credit Date 30/00 Salation Expense F Debit (92 000)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following information is available for ABC Inc. on April 30 for the year just ended.
a. Unpaid and unrecorded salaries at year-end totalled $32,000.
b. $1,020 of interest has accrued on a note payable and is unrecorded.
c. The yearly depreciation on the building is $450.
d. A review of the $10,000 unadjusted balance in the prepaid insurance account shows a remaining balance of $6,500 at the end of the year.
e. Of the $6,500 rent paid to ABC Inc. in advance, $5,750 has not yet been earned.
1. ABC Inc. purchased equipment in a previous year for $21,250 and plans to sell this equipment for $1,625 at the end of its five-year useful life.
g. $2,500 of advertising ABC Inc. placed in the local newspaper is unrecorded and unpaid.
h. The estimated yearly depreciation on the furniture is $250.
1. $2,350 of the television advertising paid for in advance has been used.
J. A review of the $21,000 unadjusted balance in the prepaid rent account shows a remaining balance of $19,750 at the end of the year.
Prepare the required adjusting entries at April 30, 2014.
Enter the transaction letter as the description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (Le., January 15 would t
General Journal
Account/Explanation
Page GJB
Credit
Date
30/Apr Salaries Expense
Salarine Pahle
F Debit
32.000
22 nnn
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