Question

29.Prepare the required end-of-period adjusting entries for each independent case listed below.

Case 1

Moonbeam Company began the year with a $3,000 balance in the Supplies account. During the year, $8,500 worth of additional office supplies were purchased. A physical count of office supplies on hand at the end of the year revealed that $4,400 worth of office supplies had been used during the year. No adjusting entry has been made until year end.

Case 2

Western Company has a calendar year-end accounting period. On July 1, the company purchased office equipment for $30,000. It is estimated that the office equipment will depreciate $500 each month. No adjusting entry has been made until year end.

Case 3

Ranch Realty is in the business of renting several apartment buildings and prepares monthly financial statements. It has been determined that 3 tenants in $800 per month apartments and one tenant in the $1,000 per month apartment had not paid their August rent as of August 31st.

30.Given the following account information for Leong Corporation, prepare a statement of financial position in report form for the company as of December 31, 2019. All accounts have normal balances.

Equipment                                              ¥ 40,000

Interest Expense                                          2,400

Interest Payable                                              600

Retained Earnings                                              ?

Dividends                                                   50,400

Land                                                         157,320

Inventory                                                  102,000

Bonds Payable                                           78,000

Notes Payable (due in 6 months)              24,400

Share Capital–Ordinary                             60,000

Accumulated Depreciation - Equip.           10,000

Prepaid Advertising                                      5,000

Revenue                                                  351,400

Buildings                                                     80,400

Supplies                                                       1,860

Taxes Payable                                             3,000

Utilities Expense                                          1,320

Advertising Expense                                    1,560

Salaries and Wages Expense                    53,040

Salaries and Wages Payable                          900

Accumulated Depr. - Buildings                  15,000

Cash                                                           40,000

Depreciation Expense                                 8,000

Answer 1