ACME Distribution, Inc. December 31, 2016 Adjusting Entries Read through each si

Question

ACME Distribution, Inc. December 31, 2016 Adjusting Entries Read through each situation below and on the following pages. After completing any necessary calculations prepare the required adjusting journal entry. When preparing the adjusting journal entries, use the account titles from the trial balance or the general ledger. Post each of the entries below to the trial balance and calculate the adjusted account balances. 1)A one year insurance policy was purchased on Sept. 30 for a premium of $18,000. In the space below show your calculations to receive full credit. year-end (December 31, 2016) adjusting entry below. Complete the required Account description Debit Credit Post the above entry to the trial balance in the adjustment columns. 2) The company's employees are paid weekly and it is open for business Monday through Saturday each week. The employees have been paid through Friday December 23. The total payroll for all employees is $850 per day and they are paid for all holidays. In the space below show your calculation of the amount due to receive full credit. Record the adjustment to accrue the salary expense through December 31 (ignore the effect of any related payroll taxes) Debit Credit Post the above entry to the trial balance in the adjustment columns.

Explanation / Answer

Journal Entry S. No. Date Particulars Dr. Amt. Cr. Amt. 1 31-Dec-16 Insurance Expense    4,500.00 $18,000 X 3/12    Prepaid Insurance    4,500.00 (To record the insurance expense) 2 31-Dec-16 Salaries & Wages Expense    6,800.00 $850 X 8 Days    Salaries & Wages Payable    6,800.00 (To record the salaries & wages due)

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