Due Transocion Ap I Prchaed a delivery von for S10.000, poying $1,000 dowm, and ising a lyer, 12% note poyoble for the $9,000 balonce. is estimated thar the von has a dyear ife ond on $800 residual value he compony ves stroightline depreciation. The interest on the note will be paid on the maturity date. May 15 Prchased sa00 ol olice spplies. June 2 Purchased a 2 year comprehensive insuronce policy for $96o. Aug Sept. 15 Advanced S000 to sales personnel to cover their fuure rovel cos. 1 Becelved 6 monh et in advance $200 per monh ond econded the S1,500 receipt es Reed Revene. 1 Accepted o $6.0, 6monh, 12% jannal rate) note receivoble from a customer, he intere to be collected Nov. when the note is collected.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Adjusting Entries The following are several transaction of Ardery Company that occured during the current year and were recorded in permanent(that is,balance sheet) accounts unless indicated other wise.

The following information also is available:

1. On january 1, the office supplies account had a $250 balance.Om December 31,an inventory count showed $190 of office supplies on hand.

2.The weekly(5 day) payroll of Ardery Company amounts to $2,000.All employees are paid at the close of business each Wednesday.A 2-day accural is required for the current year.

3.Sales personnel travel cost reports indicate that $490 of advances had been used to pay travel expenses.

4. The income tax rate is 30% on current income and us payable in the first quarter of next year.The prtax income before the adjusting entries is $8,665.

Required:

On the basis of the above information, prepare journal entries to record whatever adjustment are necessary to bring the accounts up to date one December 31.each journal entry explanation should show any related computations.

 

Due
Transocion
Ap I Prchaed a delivery von for S10.000, poying $1,000 dowm, and ising a lyer, 12% note poyoble for the
$9,000 balonce. is estimated thar the von has a dyear ife ond on $800 residual value he compony ves
stroightline depreciation. The interest on the note will be paid on the maturity date.
May 15 Prchased sa00 ol olice spplies.
June 2 Purchased a 2 year comprehensive insuronce policy for $96o.
Aug
Sept. 15 Advanced S000 to sales personnel to cover their fuure rovel cos.
1 Becelved 6 monh et in advance $200 per monh ond econded the S1,500 receipt es Reed Revene.
1 Accepted o $6.0, 6monh, 12% jannal rate) note receivoble from a customer, he intere to be collected
Nov.
when the note is collected.
Transcribed Image Text:Due Transocion Ap I Prchaed a delivery von for S10.000, poying $1,000 dowm, and ising a lyer, 12% note poyoble for the $9,000 balonce. is estimated thar the von has a dyear ife ond on $800 residual value he compony ves stroightline depreciation. The interest on the note will be paid on the maturity date. May 15 Prchased sa00 ol olice spplies. June 2 Purchased a 2 year comprehensive insuronce policy for $96o. Aug Sept. 15 Advanced S000 to sales personnel to cover their fuure rovel cos. 1 Becelved 6 monh et in advance $200 per monh ond econded the S1,500 receipt es Reed Revene. 1 Accepted o $6.0, 6monh, 12% jannal rate) note receivoble from a customer, he intere to be collected Nov. when the note is collected.
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