#### Description

##### I have 9 entries I have to create adjusting entries for.;1. One of the company's liability is a mortgage...

Description

Question

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-2015

Price : \$25