Adjusting Entries: If you could do 1,3, & 4 Thatd be great The following additio
ID: 2333674 • Letter: A
Question
Adjusting Entries:
If you could do 1,3, & 4 Thatd be great
The following additional information is provided at July 31, 2018 1) Prepaid insurance of $45,000 expires in five months. 2) Depreciation expense for the month was $16,050 3) Unbilled service revenue at 7/31/18 totaled $14,600 4) Gift cards with remaining balances of $2,300 expired on 7/31/18 5) A physical count showed $15,000 of parts and supplies on hand at 7/31/18 6) $7,250 of salaries earned from July 24-31 will be paid in August. 7) The interest rate on the bank loan is 4% 8) Received a July electricity bill of $450 on August 3 9) The investment is a certificate of deposit (CD) with an interest rate of 2%. Interest is added to the investment balance 10) Company purchases long-term disability insurance for its employees. The monthly premium is .25% of salaries expense and is payable quarterly 11) The income tax rate is 21%Explanation / Answer
Journal Entry
Adjusting Entries
Date Account Title Dr Amount Cr Amount
1 Insurance Expense-$45000*5/12 $18750
To Prepaid Insurance $18750
To record the insurance expense expired
3 Unbilled Accounts Receivable $14600
To Revenue $14600
to record the unbilled revenue
4. Unearned Revenue $2300
To Revenue $2300
to record the remaining gift cards
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