The information presented below was obtained from a review of the General Ledger (before adjustments) and other records of Chicken Co. at the close of its current fiscal year December 31, 2001. a) The weekly payroll amounts to $11,000 for a five-day week and is paid every Friday for that week. December 31, 2001 falls on a Tuesday. b) The company owns a truck purchased on October 1, 2000 at a cost of $22,000. It has an estimated useful life of 5 years and an estimated salvage value of $400. c) Unearned rent has a credit balance of $4,500 composed of the following: (1) $900 representing rent for January-March 2001 inclusive. (2) $3,600 represents an advance payment for 12 months rent beginning April 1, 2001. The "Office Supplies" account had a balance of $160 at the beginning of the year; $880 were purchased during the year, and $610 was on hand at the end of the year. e) As advance premiums are paid on insurance policies, Prepaid Insurance is debited which has a balance on December 31, 2001 of $4,000. Policies are as follows: Policy # Date of Purchase Life Amount 137 D 662 G 717 EY November 1, 2000 May 1, 2001 June 1, 2001 3 1 1 $ 1,440 1,680 960 f) The company rented another office to a tenant for a six-month period, starting November 15, 2001 for $180 per month, to be paid in full at the end of the six-month period. REQUIRED: i) Prepare Adjusting Journal Entries for the above information i
Question: The information presented below was obtained from a review of the General Ledger (before adjustments) and other records of Chicken Co. at the close of its current fiscal year December 31, 2001. a) The weekly payroll amounts to $11,000 for a five-day week and is paid every Friday for that week. December 31, 2001 falls on a Tuesday. b) The company owns a truck purchased on October 1, 2000 at a cost of $22,000. It has an estimated useful life of 5 years and an estimated salvage value of $400. c) Unearned rent has a credit balance of $4,500 composed of the following: (1) $900 representing rent for January-March 2001 inclusive. (2) $3,600 represents an advance payment for 12 months rent beginning April 1, 2001. The "Office Supplies" account had a balance of $160 at the beginning of the year; $880 were purchased during the year, and $610 was on hand at the end of the year. e) As advance premiums are paid on insurance policies, Prepaid Insurance is debited which has a balance on December 31, 2001 of $4,000. Policies are as follows: Policy # Date of Purchase Life Amount 137 D 662 G 717 EY November 1, 2000 May 1, 2001 June 1, 2001 3 1 1 $ 1,440 1,680 960 f) The company rented another office to a tenant for a six-month period, starting November 15, 2001 for $180 per month, to be paid in full at the end of the six-month period. REQUIRED: i) Prepare
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