The data below concerns adjustments to be made at Coffee Bean Importers Adjustme
ID: 2400778 • Letter: T
Question
The data below concerns adjustments to be made at Coffee Bean Importers Adjustments a. On November 1, 2019, the firm signed a lease for a warehouse and paid rent of $21,000 in advance for a six-month period. On December 31, 2019, an inventory of supplies showed that items costing $1,940 were on hand. The balance of the Supplies account was $11,880. c. A depreciation schedule for the firm's equipment shows that a total of $10,750 should be charged off as depreciation in 2019 d. On December 31, 2019, the firm owed salaries of $6,100 that will not be paid until January 2020. e. On December 31, 2019, the firm owed the employers social security (6.2 percent) and Medicare (1.45 percent) taxes on Book erences all accrued salaries t. On October 1, 2019, the firm received a five-month, 8 percent note for $6,500 from a customer with an overdue balance. Required: 1. Record the adjusting entries in the general journal as of December 31, 2019. Record reversing entries in the general journal as of January 1, 2020 Analyze After the adjusting entries have been posted, what is the balance of the Prepaid Rent account on January 1 Complete this question by entering your answers in the tabs below. Req 1 to 2 AnalyzeExplanation / Answer
Answers
Date
Accounst title
Debit
Credit
31-Dec-18
Rent Expenses
$ 7,000.00
Prepaid Rent
$ 7,000.00
(rent for 2 months expired)
31-Dec-18
Supplies expenses
$ 9,940.00
Supplies
$ 9,940.00
(Supplies consumed during the period [11880 - 1940]
31-Dec-18
Depreciation expense
$ 6,100.00
Accumulated Depreciation
$ 6,100.00
(depreciation expenses recorded)
31-Dec-18
Salaries expense
$ 6,100.00
Employer's social security payable
$ 378.20
Medicare payable
$ 88.45
Salaries Payable
$ 5,633.35
(salaries accrued to be paid)
31-Dec-18
Interest receivable
$ 130.00
Interest Revenue
$ 130.00
(3 month interest on note accrued)
----These are just the opposite of above recorded adjusting entries----
Date
Accounst title
Debit
Credit
01-Jan-20
Prepaid Rent
$ 7,000.00
Rent Expenses
01-Jan-20
Supplies
$ 9,940.00
Supplies expenses
01-Jan-20
Accumulated Depreciation
$ 6,100.00
Depreciation expense
01-Jan-20
Employer's social security payable
$ 378.20
Medicare payable
$ 88.45
Salaries Payable
$ 5,633.35
Salaries expense
$ 6,100.00
01-Jan-20
Interest Revenue
$ 130.00
Interest receivable
$ 130.00
A
Prepaid Balance on Nov 1 2019
$ 21,000.00
B = 1 Nov to 30 April
Period for which rent is paid
6 months
C = 1 Nov to 31 Dec
Rent period expired
2 months
D
Rent Expense [as in adjusting entry: 21000 x2/6]
$ 7,000.00
E = A - D
Prepaid Rent Balance as on Jan 1, 2020
$ 14,000.00
Date
Accounst title
Debit
Credit
31-Dec-18
Rent Expenses
$ 7,000.00
Prepaid Rent
$ 7,000.00
(rent for 2 months expired)
31-Dec-18
Supplies expenses
$ 9,940.00
Supplies
$ 9,940.00
(Supplies consumed during the period [11880 - 1940]
31-Dec-18
Depreciation expense
$ 6,100.00
Accumulated Depreciation
$ 6,100.00
(depreciation expenses recorded)
31-Dec-18
Salaries expense
$ 6,100.00
Employer's social security payable
$ 378.20
Medicare payable
$ 88.45
Salaries Payable
$ 5,633.35
(salaries accrued to be paid)
31-Dec-18
Interest receivable
$ 130.00
Interest Revenue
$ 130.00
(3 month interest on note accrued)
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.