INTER. ACCOUNTING - CONNECT+ALEKS ACCESS
10th Edition
ISBN: 9781264770335
Author: SPICELAND
Publisher: MCG
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The information necessary for preparing the 2021 year-end adjusting entries for Gamecock Advertising Agency appears below. Gamecock’s fiscal year-end is December 31. 1. On July 1, 2021, Gamecock receives $6,000 from a customer for advertising services to be given evenly over the next 10 months. Gamecock credits Deferred Revenue. 2. At the beginning of the year, Gamecock’s depreciable equipment has a cost of $28,000, a four-year life, and no salvage value. The equipment is depreciated evenly (straight-line depreciation method) over the four years. 3. On May 1, 2021, the company pays $4,800 for a two-year fire and liability insurance policy and debits Prepaid Insurance. 4. On September 1, 2021, the company borrows $20,000 from a local bank and signs a note. Principal and interest at 12% will be paid on August 31, 2022. 5. At year-end there is a $2,700 debit balance in the Supplies (asset) account. Only $1,000 of supplies remains on hand.Required: Record the necessary adjusting entries on…
Baby Corp. paid P72,000 to renew its only insurance policy for three years on February 1, 2021, the effective date of the policy. On February 28, 2021, the unadjusted trial balance showed a balance of P3,000 for prepaid insurance and P72,000 for insurance expense. What amounts should be reported respectively for prepaid insurance and insurance expense in the financial statements for the three months ended March 31, 2021?
Blossom Industries received its 2024 annual property tax bill for $21,300 on May 1. The taxes covered the period January-December,
were payable by June 30 and were paid on that date. Blossom has a December 31 fiscal year end and makes annual adjusting entries.
(a)
Prepare the journal entry to record the receipt of the property tax bill on May 1. (Credit account titles are automatically indented
when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the
amounts. List debit entry before credit entry.)
Date Account Titles and Explanation
Debit
Credit
May 1
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