Question

*NEED BY 10:59!!

Ogonquit Enterprises prepares annual financial statements and adjusts its accounts only at the end of the year. The following information is available for the year ended December 31, 2016:

a.	Ogonquit purchased office furniture last year for $25,000. The furniture has an estimated useful life of seven years and an estimated salvage value of $4,000.
b.	The Supplies account had a balance of $1,200 on January 1, 2016. During 2016, Ogonquit added $12,900 to the account for purchases of supplies during the year. A count of the supplies on hand at the end of December 2016 indicates a balance of $900.
c.	On July 1, 2016, Ogonquit credited a liability account, Customer Deposits, for $8,800. This sum represents an amount that a customer paid in advance and that will be recognized evenly by Ogonquit over an eight-month period.
d.	Ogonquit rented some warehouse space on September 1, 2016, at a rate of $4,000 per month. On that date, Ogonquit debited Prepaid Rent for six months’ rent paid in advance.
e.	Ogonquit took out a 90-day, 6%, $30,000 note on November 1, 2016, with interest and principal to be paid at maturity.
f.	Ogonquit operates five days per week with an average weekly payroll of $4,150. Ogonquit pays its employees every Thursday. December 31, 2016, is a Saturday.

Required:

1.	fill out in this box format
	DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY REVENUE EXPENSES NET INCOME 1 Adjusting Entries

Answer 1

• Amounts are in $
• Working shown along with entries
• As required---

	DATE	ACCOUNT TITLE	WORKING	DEBIT	CREDIT	ASSETS	LIABIL-ITIES	EQUITY	REVE-NUE	EXPEN-SES	NET INCOME
a	31-Dec-16	Depreciation Expense	[cost - salvage]/life	3000						3000	-3000
		Accumulated Depreciation	(25000-4000)/7		3000		3000				0
b	31-Dec-16	Supplies expense	[opening + purchased - closing]	13200						13200	-13200
		Supplies	(1200+12900-900]		13200	-13200					0
c	31-Dec-16	Customer Deposits	[8800 = for 8 months]	6600			-6600				0
		Service Revenue	[8800 x 6/8]		6600				6600		6600
d	31-Dec-16	Rent expenses	[4000 x 4 months]	16000						16000	-16000
		Prepaid Rent	(4000 x 4)		16000	-16000					0
e	31-Dec-16	Interest expenses	[days = 61]	1220						1220	-1220
		Interest payable	(30000 x 6% x 61/90]		1220		1220				0
f	31-Dec-16	Wages expenses	[due for Friday]	830						830	-830
		Wages payable	(4150/5)		830		830				0
			TOTAL $	40850	40850	-29200	-1550	0	6600	34250	-27650