I have 9 entries I have to create adjusting entries for.;1. One of the company's liability is a mortgage...
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I have 9 entries I have to create adjusting entries for.
1. One of the company's liability is a mortgage payable in the amount of $520,000. On June 30, the accrued intereston this mortgage was $26,000.
2. On Friday, July 2, the company, which is on a five day work week and pays employees weekly, will pay its regular salaried employees $37,400.
3.On June 29, the company completed negotiations and signed a contract to provide services to a new client at an annual rate of $14,400.
4. The supplies account shows a beginning balance of $3,230 and puchases during the year of $8,230. The end of year inventory reveals supplies on hand of $2,636.
5. The prepaid Insurance account shows the following entries on June 30: Beginning Balance $3240, January 1 $5800, May 1 $6732, the beginning balance represents the unexpired portion of a one year policy purchased a year ago. The January 1 entry represents a new one year policy,May 1 entry represents the additional coverage of a three year policy.
6.The following table contains the cost and annual depreciation for buildings and equipment, all of which were purchased before the current year: Buildings- Cost-$340,000 Annual Depreciation-$14600 and Equipment cost-$436000 annual depreciation $41300.
7.On June 1, the company completed negotiations with another client and accepted a payment of $43,200,representing one years service paid in advance. The $43,200was credited to service collected in advance.
8.The company calculates that as of June 30, it has earned $9,000on a $15,000 contract that will be completed and billed in august.
9.Federal income taxes for the year are estimated to be $ 12,600.
Solution ID:436826 | This paper was updated on 26-Nov-2015Price : $25