Question

1.)

Prepare adjusting journal entries, as needed, for the following items.

(a) The Supplies account shows a beginning balance of $100. The company purchases an additional $1,300 of office supplies for cash but a count of supplies reveals only $600 on hand at year-end.

Debit                            [ Select ]                       ["Accounts Receivable", "Retained Earnings", "Supplies Revenue", "Inventory", "Supplies", "Accounts Payable", "Cash", "Cost of Goods Sold", "Supplies Expense"]           for                            [ Select ]                       ["$100", "$2,000", "$800", "$700", "$1,400", "$600", "$1,300"]      
           Credit                            [ Select ]                       ["Accounts Receivable", "Inventory", "Cost of Good Sold", "Accounts Payable", "Retained Earnings", "Supplies Revenue", "Supplies Expense", "Supplies", "Cash"]         for                            [ Select ]                       ["$100", "$700", "$1,300", "$600", "$2,000", "$1,400", "$800"]      

(b) The company purchases 12 months of insurance on September 1st for $18,000 by debiting prepaid insurance. It is now December 31st and 4 months of insurance has been used. Record the necessary adjusting entry as of December 31st.

Debit                            [ Select ]                       ["Accounts Receivable", "Deferred Revenue", "Accounts Payable", "Insurance Revenue", "Retained Earnings", "Cash", "Equipment", "Prepaid Insurance", "Insurance Expense"]           for                            [ Select ]                       ["$1,500", "$12,000", "$6,000", "$9,000", "$4,500", "$18,000", "$3,000"]      
           Credit                            [ Select ]                       ["Accounts Payable", "Prepaid Rent", "Insurance Expense", "Prepaid Insurance", "Supplies", "Cash", "Retained Earnings", "Insurance Revenue", "Equipment", "Accounts Receivable"]         for the same amount as above

(c) A company borrows $40,000 with 6% interest on August 1st, 2018. This amount plus interest is due on July 31st, 2019. Record the adjusting entry on December 31, 2018.

Debit                            [ Select ]                       ["Supplies", "Interest payable", "Net Income", "Cash", "Retained Earnings", "Interest expense", "Interest Revenue", "Equipment", "Interest Receivable"]           for                            [ Select ]                       ["$1,000", "$400", "$200", "$1,200", "$40,000", "$42,400", "$800", "$2,400", "$1,400", "$600"]      
           Credit                            [ Select ]                       ["Equipment", "Accounts payable", "Cash", "Retained Earnings", "Interest revenue", "Interest receivable", "Interest expense", "Accounts Receivable", "Interest payable", "Supplies"]         for the same amount as above.

(d) At year-end, the company received a utility bill for December's electricity usage of $200 that will be paid in early January.

Debit                            [ Select ]                       ["Cash", "Accounts Receivable", "Equipment", "Supplies", "Utilities Revenue", "Utilities Payable", "Retained Earnings", "Utilities Expense"]           for $200
           Credit                            [ Select ]                       ["Equipment", "Deferred Revenue", "Rent Expense", "Accounts Receivable", "Supplies", "Utilities Expense", "Utilities Payable", "Cash", "Prepaid Utilities", "Retained Earnings"]         for $200

(e) A company purchases new equipment for $28,000 cash on January 1st, 2010. The equipment is expected to have a $4,000 salvage at the end of it's 4 year useful life. Record the adjusting entry for depreciation using straight-line as of December 31st, 2010

Debit                            [ Select ]                       ["Accounts Receivable", "Cash", "Service Revenue", "Accounts Payable", "Equipment", "Depreciation Expense", "Supplies", "Accumulated Depreciation", "Retained Earnings", "Prepaid Depreciation"]           for                            [ Select ]                       ["$18,000", "7,000", "$24,000", "$4,000", "$28,000", "$6,000"]      
           Credit                            [ Select ]                       ["Accounts Payable", "Equipment", "Supplies", "Depreciation Expense", "Salaries Expense", "Retained Earnings", "Service Revenue", "Accumulated Depreciation", "Cash", "Accounts Receivable"]         for the same amount as above

2.

Roccos Incorporated reports the following amounts at the end of the year.

Cash	$	6,200		Service revenue	$	72,200
Equipment		19,500		Cost of goods sold (food expense)		54,300
Accounts payable		2,500		Buildings		29,000
Delivery expense		3,500		Supplies		1,500
Salaries expense		6,400		Salaries payable		800
Deferred Revenue		5,000		Accumulated Depreciation		8000

In addition, the company had common stock of $21,000 at the beginning of the year and issued an additional $2,100 during the year. The company also had retained earnings of $12,600 at the beginning of the year and paid dividends of $3,800 during the year. Prepare the income statement, statement of stockholders' equity, and balance sheet.

Upload

Choose a File

Answer 1