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The information necessary for preparing the 2024 year-end adjusting entries for Moreno Advertising Agency appears below. Moreno's fiscal year-end is December 31. 1. On July 1, 2024, Moreno received $4,500 from a customer for advertising services to be given evenly over the next 10 months. Moreno credited Deferred Revenue on July 1. 2. At the end of the year, income taxes owed are $5,500. 3. On May 1, 2024, the company paid $3,000 for a two-year fire and liability insurance policy. The company debited Prepaid Insurance on May 1. 4. On September 1, 2024, the company borrowed $25,000 from a local bank and signed a note. Principal and interest at 9% will be paid on August 31, 2025, 5. At year-end there is a $1,950 debit balance in the Supplies (asset) account. Only $850 of supplies remains on hand at the end of the year. Required: Record the necessary adjusting entries on December 31, 2024. No prior adjustments have been made during 2024. (Do not round intermediate calculations. If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

The information necessary for preparing the 2024 year-end adjusting entries for Moreno Advertising Agency appears below. Moreno's fiscal year-end is December 31. 1. On July 1, 2024, Moreno received $4,500 from a customer for advertising services to be given evenly over the next 10 months. Moreno credited Deferred Revenue on July 1. 2. At the end of the year, income taxes owed are $5,500. 3. On May 1, 2024, the company paid $3,000 for a two-year fire and liability insurance policy. The company debited Prepaid Insurance on May 1. 4. On September 1, 2024, the company borrowed $25,000 from a local bank and signed a note. Principal and interest at 9% will be paid on August 31, 2025, 5. At year-end there is a $1,950 debit balance in the Supplies (asset) account. Only $850 of supplies remains on hand at the end of the year. Required: Record the necessary adjusting entries on December 31, 2024. No prior adjustments have been made during 2024. (Do not round intermediate calculations. If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The information necessary for preparing the 2024 year-end adjusting entries for Moreno Advertising Agency appears below. Moreno's fiscal year-end is December 31. 1. On July 1, 2024, Moreno received $4,500 from a customer for advertising services to be given evenly over the next 10 months. Moreno credited Deferred Revenue on July 1. 2. At the end of the year, income taxes owed are $5,500. 3. On May 1, 2024, the company paid $3,000 for a two-year fire and liability insurance policy. The company debited Prepaid Insurance on May 1. 4. On September 1, 2024, the company borrowed $25,000 from a local bank and signed a note. Principal and interest at 9% will be paid on August 31, 2025, 5. At year-end there is a $1,950 debit balance in the Supplies (asset) account. Only $850 of supplies remains on hand at the end of the year. Required: Record the necessary adjusting entries on December 31, 2024. No prior adjustments have been made during 2024. (Do not round intermediate calculations. If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
Transcribed Image Text:The information necessary for preparing the 2024 year-end adjusting entries for Moreno Advertising Agency appears below. Moreno's fiscal year-end is December 31. 1. On July 1, 2024, Moreno received $4,500 from a customer for advertising services to be given evenly over the next 10 months. Moreno credited Deferred Revenue on July 1. 2. At the end of the year, income taxes owed are $5,500. 3. On May 1, 2024, the company paid $3,000 for a two-year fire and liability insurance policy. The company debited Prepaid Insurance on May 1. 4. On September 1, 2024, the company borrowed $25,000 from a local bank and signed a note. Principal and interest at 9% will be paid on August 31, 2025, 5. At year-end there is a $1,950 debit balance in the Supplies (asset) account. Only $850 of supplies remains on hand at the end of the year. Required: Record the necessary adjusting entries on December 31, 2024. No prior adjustments have been made during 2024. (Do not round intermediate calculations. If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
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