Service Pro Corp (SPC) is preparing adjustments for its September 30 year-end. For the following transactions and events, show the September 30 adjusting entries that SPC would make. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
a. Prepaid Insurance shows a balance of zero at September 30, but Insurance Expense shows a debit balance of $2,448, representing the cost of a three-year fire insurance policy that was purchased on September 1 of the current year.
b. On August 31 of this year, Cash was debited and Service Revenue was credited for $1,590. The $1,590 related to fees for a three-month period beginning September 1 of the current year.
c. The companyâs income tax rate is 35%. After making the above adjustments, SPC's net income before tax is $10,000. No income tax has been paid or recorded.
Transaction General Journal Debit Credit
a b c
Service Pro Corp (SPC) is preparing adjustments for its September 30 year-end. For the following transactions and events, show the September 30 adjusting entries that SPC would make. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
a. Prepaid Insurance shows a balance of zero at September 30, but Insurance Expense shows a debit balance of $2,448, representing the cost of a three-year fire insurance policy that was purchased on September 1 of the current year.
b. On August 31 of this year, Cash was debited and Service Revenue was credited for $1,590. The $1,590 related to fees for a three-month period beginning September 1 of the current year.
c. The companyâs income tax rate is 35%. After making the above adjustments, SPC's net income before tax is $10,000. No income tax has been paid or recorded.
Transaction General Journal Debit Credit
| a | |||
|---|---|---|---|
| b | |||
| c |
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I NEED HELP MAIKING A GENERAL JOURNAL FORTHIS
Jordan Companyâs annual accounting year ends on December 31. Itis now December 31, 2015, and all of the 2015 entries have beenmade except for the following: |
| a. | The company owes interest of $640 on a bank loan. The interestwill be paid when the loan is repaid on September 30, 2016. Nointerest has been recorded. |
| b. | On September 1, 2015, Jordan collected six monthsâ rent of$4,440 on storage space. At that date, Jordan debited Cash andcredited Unearned Revenue for $4,440. |
| c. | The company earned service revenue of $2,700 on a special jobthat was completed December 29, 2015. Collection will be madeduring January 2016. No entry has been recorded. |
| d. | On November 1, 2015, Jordan paid a one-year premium for propertyinsurance of $3,840, for coverage starting on that date. Cash wascredited and Prepaid Insurance was debited for this amount. |
| e. | At December 31, 2015, wages earned by employees but not yet paidtotaled $1,200. The employees will be paid on the next payrolldate, January 15, 2016. |
| f. | Depreciation of $1,100 must be recognized on a service truckpurchased this year. |
| g. | The income after all adjustments other than income taxes was$29,400. The company's income tax rate is 20%. Compute and recordincome tax expense. |
