Question
In: Accounting
Make adjusting entries for December 31, 2017 for the following transactions. (Assume a single adjusting entry...
Make adjusting entries for December 31, 2017 for the following transactions. (Assume a single adjusting entry is made each of the following at year end December 31, 2017).
A XX Company purchased a fire insurance policy for 2 years coverage on November 1, 2017 for $20000.
B XX Company received $30000 from YY Company on January 1, 2017 in payment in advance for advising services to be provided for 2 years from the inception of the contract.
C XX purchases a bond on August 1, 2017 with a face value of $24,000 that pays 12 percent interest each year. Interest is paid on the bond semiannually.
D XX pays wages of $25,000 each week for 5 days work (Monday through Friday). December 31 in 2016 was a Tuesday.
Solutions
Expert Solution
|
Journal Entries |
||||
| Date | Account Title | Dr $ | Cr $ | |
| A | 31-12-2017 | Prepaid Insurance (20,000 * 2/24 months ) | $ 1,666.67 | |
| Insurance Expense | $ 1,666.67 | |||
| (To record insurance expense ) | ||||
| B | 31-12-2017 | Unearned Revenue (30000/2*1) | $ 15,000.00 | |
| Revenue Income | $ 15,000.00 | |||
| (To record revenue earned ) | ||||
| C. | 31-12-2017 | Interest Receivable (24000*12%*5/12) | $ 1,200.00 | |
| Interest Revenue | $ 1,200.00 | |||
| (To record interest revenue earned ) | ||||
| D. | 31-12-2017 | Wages Expense | $ 15,000.00 | |
| Wages payable (25000/5 days * 3 days ) | $ 15,000.00 | |||
| (To record outstanding wages ) |
* If December 31 , 2016 is tuesday then December 31, 2017 will be Wednesday.
If you have any query please ask in comments
ekkarill92 answered 3 years agoRelated Solutions
7 Make adjusting entries for December 31, 2019 for the following transactions. (Assume a single adjusting...
7 Make adjusting entries for December 31, 2019 for the following
transactions. (Assume a single adjusting entry is made each of the
following at year end December 31, 2019). A Ajax Company purchased
a fire insurance policy for 2 years coverage on November 1, 2019
for $24,000. B Ajax Company received $24,000 from Sphere Company on
January 1, 2019 in payment in advance for financial analytical
services to be provided for 2 years from the inception of the
contract. C...
Record the December 31 adjusting entries for the following transactions and events in general journal form....
Record the December 31 adjusting entries for the following
transactions and events in general journal form. Assume that
December 31 is the end of the annual accounting period.
a. The Prepaid Insurance account shows a debit balance of
$2,340, representing the cost of a two-year fire insurance policy
that was purchased on October 1 of the current year and has not
been adjusted to-date.
b. The Store Supplies account has a debit balance of $400; a
year-end inventory count reveals...
Post transactions from August 1 through December 31 and adjusting entries on December 31 to T-accounts....
Post transactions from August 1 through December 31 and
adjusting entries on December 31 to T-accounts.
Jul.
1
Sell $17,000 of common stock to Suzie.
Jul.
1
Sell $17,000 of common stock to Tony.
Jul.
1
Purchase a one-year insurance policy for $4,440 ($370 per
month) to cover injuries to participants during outdoor
clinics.
Jul.
2
Pay legal fees of $1,900 associated with incorporation.
Jul.
4
Purchase office supplies of $2,000 on account.
Jul.
7
Pay for advertising of $380...
Journalize the adjusting entry needed on December 31, 2017, end of the current accounting period, for...
Journalize the adjusting entry needed on December 31, 2017,
end of the current accounting period, for each of the following
independent cases affecting Nickelson Corp. Include an explanation
for each entry. (Record debits first, then credits. Enter
explanations on the last line.) a. Details of the Prepaid
Insurance account reveal a January 1 (beginning of the year)
debit balance of $ 300 and a debit to the account on March 31 for $
3 comma 800 to record the payment...
Journalize the adjusting entry for bad debts at December 31, 2017, assuming that the unadjusted balance...
Journalize the adjusting entry for bad debts at December 31,
2017, assuming that the unadjusted balance in Allowance for
Doubtful Accounts is a debit of $ 1,300 and the aging schedule
indicates that total estimated bad debts will be $ 38,000. (Credit
account titles are automatically indented when amount is entered.
Do not indent manually.)
Scenario for adjusting entries: Year end is December 31, 2017. Peyton Baking Company uses the following...
Scenario for adjusting entries: Year end is December 31, 2017.
Peyton Baking Company uses the following accounting practices:
Inventory: Periodic, FIFO for both baking and merchandise
Baking supplies: $27,850 ending inventory
Equipment: Straight line method used for equipment
Mixing machine: $5,000 initial cost, $500 salvage value, 3rd
year of use of 7 total ($642.86 per year)
Ovens: $8,000 initial cost, $1,000 salvage value, 3rd year of
use of 7 total ($1,000 per year)
Other depreciable equipment: $4,000 initial cost, $0...
Scenario for adjusting entries: Year end is December 31, 2017. Peyton Baking Company uses the following...
Scenario for adjusting entries: Year end is December 31, 2017.
Peyton Baking Company uses the following accounting practices:
Inventory: Periodic, FIFO for both baking and merchandise
Baking supplies: $27,850 ending inventory
Equipment: Straight line method used for equipment
Mixing machine: $5,000 initial cost, $500 salvage value, 3rd
year of use of 7 total ($642.86 per year)
Ovens: $8,000 initial cost, $1,000 salvage value, 3rd year of
use of 7 total ($1,000 per year)
Other depreciable equipment: $4,000 initial cost, $0...
Scenario for adjusting entries: Year end is December 31, 2017. Peyton Baking Company uses the following...
Scenario for adjusting entries: Year end is December 31, 2017.
Peyton Baking Company uses the following accounting practices:
Inventory: Periodic, FIFO for both baking and merchandise
Baking supplies: $27,850 ending inventory
Equipment: Straight line method used for equipment
Mixing machine: $5,000 initial cost, $500 salvage value, 3rd
year of use of 7 total ($642.86 per year)
Ovens: $8,000 initial cost, $1,000 salvage value, 3rd year of
use of 7 total ($1,000 per year)
Other depreciable equipment: $4,000 initial cost, $0...
A company must make adjusting entry on December 31, 2019 Expired insurance, $7,000; on December 1,...
A company must make adjusting entry on December 31, 2019
Expired insurance, $7,000; on December
1, 2019, the firm paid $42,000 for six months’ insurance coverage
in advance and debited Prepaid Insurance
for this amount.
How do you post it in the General Journal and the Ledger.
Windsor, Inc. had net sales in 2017 of $1,410,600. At December 31, 2017, before adjusting entries,...
Windsor, Inc. had net sales in 2017 of $1,410,600. At December
31, 2017, before adjusting entries, the balances in selected
accounts were Accounts Receivable $384,800 debit, and Allowance for
Doubtful Accounts $1,814 debit. Assume that 11% of accounts
receivable will prove to be uncollectible. Prepare the entry to
record bad debt expense. (If no entry is required, select "No
Entry" for the account titles and enter 0 for the amounts. Credit
account titles are automatically indented when the amount is...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Two cannons are mounted as shown in the drawing and rigged to fire simultaneously. They are...
- What is the potential of a cell made up of Zn|Zn2+ and Cu|Cu2+ half-cells at 25o...
- Write a Java Program using the following instruction: Create the following 3 methods that calculate and...
- How would the S/D curves shift if a $3 tax was imposed on suppliers for each...
- Why should a time-based authentication system invalidate the current password on a successful authentication?
- Explain the difference between a market penetration strategy and a market development strategy.
- QUESTION 4 Discuss the sanctity of life versus the quality of life debate as presented by...
ADVERTISEMENT