Edit View History Bookmarks Window Help newconnect.mheducation.conm ect Practice
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Edit View History Bookmarks Window Help newconnect.mheducation.conm ect Practice Assignment- Assessment Activity- Week5- ACC/291-eCampus Saved 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 $21000 in advance for a six-month period. ? on December 31, 2019, an n entory of supplies showed that items cost g S1.940 were on hand. The balance of the Supplies account was $11,880. c A depreciation schedule for the firm's that a 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 e s equipment shows that a total of $10,750 should be charged off as depreciation in 2019 owed the employer's social security (6.2 percent) and Medicare (1.45 percent) taxes on all accrue salaries f. 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 2. 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, 20207 Complete this question by entering your answers in the tabs below Req 1 to 2 Analyze Record adjusting entries in the general journal as of December 31, 2019 and reversing entries as of January 1, 2020 (Round your answers to 2 decimal places.) Journal entry worksheet 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.Explanation / Answer
Adjusting Journal Entries on December 31 2019
Date
General Journal
Debit
Credit
31 dec 2019
Rent Expense
$ 7,000.00
Prepaid Rent
$ 7,000.00
(Rent for 2 months Accrued)
31 dec 2019
Supplies Expense
$ 9,940.00
Supplies
$ 9,940.00
(Supplies Consumed during Year)
31 dec 2019
Depreciation expense-Equipment
$ 10,750.00
Accumulated Depreciation-Equipment
$ 10,750.00
(Depreciation for year recorded)
31 dec 2019
Salaries and Wages Expense
$ 6,566.65
Salaries and Wages Payable
$ 6,100.00
Social Security tax Payable
$ 378.20
Medicare Payable
$ 88.45
(salaries and Taxes on salaries payable)
31 dec 2019
Interest Receivable
$ 208.00
Interest Income
$ 208.00
(interest on note receivable recorded)
Reversal Entries on jan 1 2020
jan 1 2020
Salaries and Wages Payable
$ 6,100.00
Social Security tax Payable
$ 378.20
Medicare Payable
$ 88.45
Cash
$ 6,566.65
(cash paid)
Interest on note Calculation
Amount
$ 6,500.00
Interest rate
8%
interest
$ 520.00
For 5 months (520/12*5)
$ 216.67
Interest accrued for 3 months to be recorded (216.67*3/5)
$ 130.00
Adjusting Journal Entries on December 31 2019
Date
General Journal
Debit
Credit
31 dec 2019
Rent Expense
$ 7,000.00
Prepaid Rent
$ 7,000.00
(Rent for 2 months Accrued)
31 dec 2019
Supplies Expense
$ 9,940.00
Supplies
$ 9,940.00
(Supplies Consumed during Year)
31 dec 2019
Depreciation expense-Equipment
$ 10,750.00
Accumulated Depreciation-Equipment
$ 10,750.00
(Depreciation for year recorded)
31 dec 2019
Salaries and Wages Expense
$ 6,566.65
Salaries and Wages Payable
$ 6,100.00
Social Security tax Payable
$ 378.20
Medicare Payable
$ 88.45
(salaries and Taxes on salaries payable)
31 dec 2019
Interest Receivable
$ 208.00
Interest Income
$ 208.00
(interest on note receivable recorded)
Reversal Entries on jan 1 2020
jan 1 2020
Salaries and Wages Payable
$ 6,100.00
Social Security tax Payable
$ 378.20
Medicare Payable
$ 88.45
Cash
$ 6,566.65
(cash paid)
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