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
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Make adjusting journal entries
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