You have been given the unadjusted trial balance for the Bogie & Bacall Company

Question

You have been given the unadjusted trial balance for the Bogie & Bacall Company (“B&B”) as of 12/31/2016. B&B prepares financial statements annually. Your required tasks are as follows:

1. On the designated worksheet, prepare in journal entry form the adjusting journal entries for the following items. Letter entries to correspond to the below information and present them in alphabetical order. (Round all numbers to the nearest dollar)

a. On April 1, 2016 B&B paid Lorre Advertising $48,000 for two years of advertising services. Equal services are provided in year 1 and year

2. b. B&B needed some additional storage space so on July 1, 2016 they rented a unit for an annual rate of $10,200. The entire amount was expensed when paid.

c. $4,250 of store supplies were purchased during the year and the asset Store Supplies was increased. $3,000 of these supplies were used during the year.

d. $6,500 of office supplies were purchased during the year and were immediately expensed. A count of the office supplies on hand December 31, 2016, indicates a balance of $1,250.

e. On August 1, 2016, B&B issued a 9-month note receivable to Greenstreet & Co. at an annual interest rate of 6%. Principal and interest will be paid at the end of the 9-months. The note was recorded in Notes Receivable and is the only note outstanding.

f. Sales salaries of $4,800 and office salaries of $5,500 had been earned and remained unpaid at 12/31/16.

g. On December 1, 2016, B&B rented a portion of one store to Paul Henreid Co. The contract was for 6 months and B&B required the 6 months of cash upfront on December 1st. The rent is being earned equally over the next 6 months. When cash was received, unearned rent was appropriately recorded.

h. On May 1, 2016, B&B collected $19,200 for consulting services to be performed from May 1, 2016 to April 30, 2017. The company credited the revenue account when the cash was received.

i. At 12/31/2016, based on the aging method, B&B determines that uncollectible accounts are $5,250.

Explanation / Answer

10300

**Principal amount of note not given

**Rent revenue received in part g is not provided

Date Account Debit credit a Advertising expense 18000 prepaid advertising 18000 [advertsing expense expired for 9 months (1april -31dec) 48000*9/24months] b Prepaid rent 5100 Rent expense 5100 [being rent for 6 months not yet accrued 10200*6/12][1july -31 dec] c supplies expense -store 3000 supplies -store 3000 supplies used] d Office supplies 1250 supplies expense-office 1250 [being supplies not used recorded] e Interest receivable 600 Interest revenue 600 [being interest earned but not received for 5 months (1aug -31dec)[principal amount of note is missing]24000*.06*5/12] f salaries expense 10300 salaries payable

10300

[being salary accrued but not paid ]4800+5500] g Unearned rent revenue 33330 Rent revenue 3333 [being revenue earned for 1 month]20000/6 h Service revenue 6400 Unearned service revenue 6400 [being revenue not earned for period 1 jan 2017 -30april 2017 ][19200*4/12]6400 i Bad debt expense 5250 Allowance for uncollectible account 5250 [Being amount deemed uncollectible recorded]

Related Questions

Navigate

• Browse (All)
• Browse Y
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.