Saved Help Save & Exit e-b. Merchendise Inventory, before adjustment, has a bala
ID: 2524407 • Letter: S
Question
Saved Help Save & Exit e-b. Merchendise Inventory, before adjustment, has a balance of $7,900. The newly counted inventory balance is $8,400 c. Unearned Seminar Fees has a balance of $6,400,r June, July, and August 2019. Two seminars had been conducted by June 30, 2019. d. Prepeid Insurance has a balance of $14.400 for six months insurance paid in advance on May 1, 2019 e. Store equipment costing $5,820 was purchased on March 31, 2019 It has a salvage value of $540 and a useful ife of four years t. Employees have earned $290 that has not been paid at June 30, 2019 g. The employer owes the following taxes on wages not paid at June 30, 2019 SUTA, $8 70, FUTA, $174, Medicare. $4.2t and social security, $17.98 h. Management estimates uncollectible accounts expense at 1 percent of sales. This years sales were $2.400,000 L. Prepaid Renthas a balance of $7.200 for six months rent paid in advance on March 1, 2019 J. The Supplies account in the general ledger has a balance of $440 A count of suppies on hand at hune 30, 2019, indicated $1no of supplies remain k. The company borrowed $7,700 from First Bank on June 1,2019 and nsued a four-morith note. The note bears interest ot 12 percent Required: Based on the itormation above record the ad Ating journal entres that company has a June 30 fiscal year-end st be made tor su en Com ng on A 200 The e Analyze: After al adjuiting entries have been journalkzed and posted, what is the balance of the Prepaid Renr account Complete this question by entering your answers in the tabs below eased on the above information, record the adjusting journal entries that must be made for Sufen Consuiting on ne 2019. The company has a bane 30 fiscal yExplanation / Answer
Adjustment entries
date
explanation
debit
credit
30-Jun
inventory
500
accounts payable
500
30-Jun
unearned seminar fee
2560
revenue from seminar fee
2560
30-Jun
insurance expense
4800
prepaid insurance
4800
30-Jun
depreciation expense
330
accumulated depreciation
330
30-Jun
wages expense
280
wages payable
280
30-Jun
tax expense
32.63
tax payable
32.63
30-Jun
bad debt expense
24000
allowance for doubtful debts
24000
30-Jun
rent expense
4800
prepaid rent
4800
30-Jun
supplies expense
270
supplies
270
30-Jun
interest expense
77
interest payable
77
Prepaid rent
balance
7200
rent expense
4800
2400
total
7200
total
7200
opening balance
2400
Adjustment entries
date
explanation
debit
credit
30-Jun
inventory
500
accounts payable
500
30-Jun
unearned seminar fee
2560
revenue from seminar fee
2560
30-Jun
insurance expense
4800
prepaid insurance
4800
30-Jun
depreciation expense
330
accumulated depreciation
330
30-Jun
wages expense
280
wages payable
280
30-Jun
tax expense
32.63
tax payable
32.63
30-Jun
bad debt expense
24000
allowance for doubtful debts
24000
30-Jun
rent expense
4800
prepaid rent
4800
30-Jun
supplies expense
270
supplies
270
30-Jun
interest expense
77
interest payable
77
Prepaid rent
balance
7200
rent expense
4800
2400
total
7200
total
7200
opening balance
2400
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