Question

Viking Trivia Company Chart of Account Titles (selected):

Assets: Prepaid Rent, Prepaid Advertising. Prepaid Insurance, Office Supplies, Inventory, Accumulated Depreciation

Liabilities: Interest Payable, Utilities Payable, Commissions Payable, Unearned Rent

Revenues: Rent Revenue, Interest Revenue

Expenses: Office Supplies Expense, Commissions Expense, Utilities Expense, Insurance Expense, Advertising Expense, Depreciation Expense, Interest Expense, Rent Expense

Review the following items and make the necessary adjusting entries using the account titles shown above as of December 31, 2019. If no entry is required, write N/A in all blanks for that item. Round all amounts to the nearest dollar.

a) On October 1, 2019, Viking Trivia Company paid $72,000 for a two-year lease on an office building. The payment was recorded as prepaid rent, and the lease commenced on the date of payment.

Debit Account  Debit Amount

Credit Account  Credit Amount

b) On December 1, 2019, Viking Trivia Company entered into a legally binding contract to purchase $40,000 of advertising. The advertising will begin on March 1, 2020 with payment due at that time.

Debit Account  Debit Amount

Credit Account  Credit Amount

c) On December 1, 2019, Viking Trivia Company rented some office space to a local telemarketer. Viking collected $5,400 rent for the period of December 1, 2019, to February 29, 2020. The cash collected was recorded as unearned rent.

Debit Account  Debit Amount

Credit Account  Credit Amount

d) During 2019, Viking Trivia Company purchased office supplies that cost $23,400. The purchase was recorded as office supplies inventory. At the beginning of 2019, the office supplies inventory was $3,600. At the end of 2019, a count showed unused office supplies amounting to $2,600.

Debit Account  Debit Amount

Credit Account  Credit Amount

e) For the week ended December 31, 2019, Viking Trivia Company sales employees earned $37,000 in commissions that will be paid in the next payroll on January 11, 2020.

Debit Account  Debit Amount

Credit Account  Credit Amount

f) On June 1, 2019, Viking Trivia Company borrowed $360,000 cash on a one-year, 6% note payable. The interest is payable on the due date, May 31, 2020.

Debit Account  Debit Amount

Credit Account  Credit Amount

g) On July 1, 2019, Viking Trivia Company paid $7,800 for six months’ property insurance coverage beginning on that date. The payment was debited to insurance expense on that date.

Debit Account  Debit Amount

Credit Account  Credit Amount

h) On October 1, 2019, Viking Trivia Company purchased office equipment that cost $44,000. The estimated life of the office equipment was five years with no residual value.

Debit Account  Debit Amount

Credit Account  Credit Amount

Answer 1