ACC 101 Lecture Notes - Lecture 3: The Law Firm, Promissory Note, Trial Balance

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coppertoad742

28 Jan 2019

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Document Summary

The prepaid insurance account began the year with a balance of . During the year, insurance in the amount of ,040 was purchased. At the end of the year (december 31), the amount of. Chp 3 hw insurance still unexpired was . (460+1040-700 = 800) beg yr + during yr - end yr: the supplies account began the year with a balance of . During the year, supplies in the amount of were purchased. This is the third month that the office equip, which cost ,900, has been owned. (for the month of march=: wages are paid each saturday for a six-day workweek. Wages are currently ,380 per week. (,380 / 6 = 230) Less: during the month of august, deposits in the amount of ,100 were received for services to be performed. Prepare the adjusting entry required on may 31, assuming that june 1 falls on a wednesday. (70,000 x (2/5) = 28,000)

Related Questions

The following list of accounts and their balances represents theunadjusted trial balance of Alt Company at December 31, 2014:
Cash $ 27,290
Short-term Investment 60,000
Accounts Receivable 69,000
Allowance for Doubtful Accounts $ 500
Inventory 54,720
Prepaid Rent 36,000
Plant Assets 160,000
Accumulated Depreciation 14,740
Accounts Payable 11,370
Bonds Payable 90,000
Common Stock 170,000
Retained Earnings 97,180
Sales Revenue 214,800
Cost of Goods Sold 154,400
Transportation-Out 11,000
Salaries and Wages Expense 32,000
Interest Expense 2,040
Rent Revenue 21,600
Miscellaneous Expense 890
Insurance Expense 12,850

Additional Data:

1. The balance in the Insurance Expense account contains thepremium costs of three policies:
Policy 1, remaining cost of $2,550, 1-yr. term, taken out on May 1,2013;
Policy 2, original cost of $9,600, 3-yr. term, taken out on Oct. 1,2014;
Policy 3, original cost of $1,300, 1-yr. term, taken out on Jan. 1,2014.

2. On September 30, 2014, Alt received $21,600 rent from its lesseefor an eighteen month lease beginning on that date.

3. The regular rate of depreciation is 10% per year. Acquisitionsand retirements during a year are depreciated at half this rate.There were no purchases during the year. On December 31, 2013, thebalance of the Plant and Equipment account was $220,000.

4. On December 28, 2014, the bookkeeper incorrectly credited salesfor a receipt on account in the amount of $4,200.

5. At December 31, 2004, salaries accrued but unpaid were$4,200.

6. Alt estimates that 1% of sales will become uncollectible.

7. On August 1, 2014, Alt purchased, as a short-term investment, 60$1,000, 6% bonds of Allen Corp. at par. The bonds mature on August1, 2015. Interest payment dates are July 31 and January 31.

8. On April 30, 2014, Alt rented a warehouse for $3,000 per month,paying $36,000 in advance.

Instructions

Record the necessary correcting and adjusting entries.

Indicate which of the adjusting entries may be reversed at thebeginning of the next accounting period.

scarletelephant232

On January 2, 20X1, Prepaid Rent had a balance of $15,000. Atthe end of the year, the amount of Prepaid Rent is $4,000.Required: The adjusting entry on December 31, 20X1 would be todebit Rent expense and credit Prepaid Rent for $ [a].

2. Needles pays employees $2,750 in wages per week. Wages arepaid each Friday for a 5-day work week. December 31, 20X1 ends on aTuesday. Required: The adjusting entry on December 31, 20X1 wouldbe to debit Wages expense and credit payable for $ [b].

3. At the beginning of the year, the Supplies account had $850.During the year $5,600 of supplies were purchased. At December 31,2009, $475 of supplies were on hand. Required: The adjusting entryon December 31, 20X1 would be to debit Supplies expense and creditSupplies for $ [c].

4. On October 1, 20X1, $21,000 was received from customers inadvance for services to be performed from October 1, 20X1 toSeptember 30, 20X2. Required: The adjusting entry on December 31,20X1 would be to debit Unearned Fees and credit Fees earned for $[d].

1. A company purchases a two - year insurance policy on June 1,20X1 for $36,000. The adjusting entry on December 31, 20X1 is debitInsurance Expense, $10,500, and credit Prepaid Insurance, for[a].

2. On September 1, 20X1, $6,000 was received from customers inadvance for services to be performed from September 20X1 to August31, 20X2.

Required: The adjusting entry on December 31,20X1 to record the amount of Fees earned would be: $ [b].

3. At the beginning of the year, 20X1, the Supplies account had$2,850. During the year $15,600 of supplies were purchased. AtDecember 31, 20X1, $650 of supplies were on hand.

Required: The adjusting entry on December 31,20X1 would be to debit Supplies expense and credit Supplies for $[c].

mauvekangaroo793

Following are three separate transactions that pertain to prepaid items. Evaluate each item and prepare the journal entries that would be needed for the initial recording and subsequent end-of-20X3 adjusting entry. Assume the company uses the balance sheet approach, and the initial recording is to an asset account. The company has a calendar year-end and does not make any adjusting entries prior to December 31.

(1)

The company purchased an 18-month insurance policy for $18,000 on June 1, 20X3.

(2)

The company started 20X3 with $20,000 in supplies (this was previously recorded, and you do not need to make an entry for the beginning balance), purchased $30,000 in supplies during the year, and found only $13,000 in supplies on hand at the end of 20X3.

(3)

The company paid $2,500 to rent a truck. The rental period began on December 16, 20X3, and ends on February 14, 20X4.