Use this info below to make adjusting journal entries (in good form) a) Fall Fun, Inc purchased and began using the Equipment for $35 on July 1, 2021. (the purchase transaction has already been recorded) The equipment is expected to last 5 years and have a salvage value of $5. SV, Inc uses straight line depreciation. b) FF borrowed $100 on Feb 1, 2021 (the loan is already recorded). The loan requires 12% annual cash interest payments beginning January 31, 2022. The principle balance will not be repaid by FF, Inc until 2024. c) By the end of the accounting period, FF Inc earned half of the amount customer's previously paid for tourist services. d) There are $3 remaining in supplies as of the balance sheet date.. e) The Prepaid Insurance on the Unadjusted TB represents a 12 month (1 year) insurance policy from Nov 1, 2021 to Oct 31, 2022. The cash payment for the insurance has already been recorded. f) Employees are owed $8 for their wages from December 2021 and not paid until January 2022,
Use this info below to make adjusting journal entries (in good form) a) Fall Fun, Inc purchased and began using the Equipment for $35 on July 1, 2021. (the purchase transaction has already been recorded) The equipment is expected to last 5 years and have a salvage value of $5. SV, Inc uses straight line depreciation. b) FF borrowed $100 on Feb 1, 2021 (the loan is already recorded). The loan requires 12% annual cash interest payments beginning January 31, 2022. The principle balance will not be repaid by FF, Inc until 2024. c) By the end of the accounting period, FF Inc earned half of the amount customer's previously paid for tourist services. d) There are $3 remaining in supplies as of the balance sheet date.. e) The Prepaid Insurance on the Unadjusted TB represents a 12 month (1 year) insurance policy from Nov 1, 2021 to Oct 31, 2022. The cash payment for the insurance has already been recorded. f) Employees are owed $8 for their wages from December 2021 and not paid until January 2022,
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Make adjusting journal entries
Transcribed Image Text:Use this info below to make adjusting journal entries (in good
form)
a) Fall Fun, Inc purchased and began using the Equipment for
$35 on July 1, 2021. (the purchase transaction has already
been recorded) The equipment is expected to last 5 years and
have a salvage value of $5. SV, Inc uses straight line
depreciation.
b) FF borrowed $100 on Feb 1, 2021 (the loan is already
recorded). The loan requires 12% annual cash interest
payments beginning January 31, 2022. The principle balance
will not be repaid by FF, Inc until 2024.
c) By the end of the accounting period, FF Inc earned half of
the amount customer's previously paid for tourist services.
d) There are $3 remaining in supplies as of the balance sheet
date. .
e) The Prepaid Insurance on the Unadjusted TB represents a 12
month (1 year) insurance policy from Nov 1, 2021 to Oct 31,
2022. The cash payment for the insurance has already been
recorded.
f) Employees are owed $8 for their wages from December
2021 and not paid until January 2022,
Transcribed Image Text:UNADJUSTED UNADJUSTED
ACCOUNT
DEBIT
CREDIT
CASH
100
ACCOUNTS
RECEIVABLE
SUPPLIES
PREPAID
INSURANCE
12
EQUIPMENT
35
ACCUMULATED
DEPRECIATION
ACCOUNTS
PAYABLE
INTEREST
PAYABLE
WAGES PAYABLE
UNEARNED
REVENUE
20
LOAN PAYABLE
100
COMMON
STOCK
RETAINED
EARNINGS
10
DIVIDENDS
30
REVENUE
100
DEPRECIATION
EXPENSE
INTEREST
EXPENSE
INSURANCE
EXPENSE
4
RENT EXPENSE
12
SUPPLIES
EXPENSE
4
UTILITIES
EXPENSE
9
WAGES EXPENSE
36
TOTAL DEBITS &
CREDITS
$259
$259
Additional Information needed for year-end adjustments:
Use this info below to make adjusting journal entries (in good
form)
25
Expert Solution
Step 1
Adjusting Journal entries -
These entries are prepared at the end of an accounting period to record all the incomes and expenses of that accounting period are recorded in that period only.
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