ents NEXT Attempts: 2 of 3 used (d) A Your answer is partially correct. Try agai

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ents NEXT Attempts: 2 of 3 used (d) A Your answer is partially correct. Try again. Dournalize the following adjustm entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record jo problem. Round answers to o decimal places, e.g. 1,527.) ents. (Credit account citles are automatically indented when amount is entered. Do not indent manually. If no urna, triesthe "de, prei" id- (1) Services performed for customers through February 27, 2017, but unbiled and uncollected were $2,890. (2) Received notice that a customer who was billed $220 for services performed February 10 has fled for bankruptcy. Larkspur does not expect to collect any portion of this outstanding receivable. Larkspur uses the allowance method to estimate bad debts. Larkspur estimates that 396 of its month-end receivables will not be collected. (3) (4) Record 1 month of depreciation for the floor equipment. use the straight-line method, an estimated life of 4 years, and $400 salvage value. (5) Record 1 month of insurance expense. (6) An inventory count shows $300 of supplies on hand at February 28 (7) One week of services were performed for the customer who paid in advance on February 17. (8) Accrue for wages owed through February 28, 2017. (9) (10) Accrue for interest expense for 1 month. karen estimates a 20% income-tax rate. (Hint: Prepare an income statement up to-income before taxes" to help with the income tax calculation.) Credit No. Account Titles and Explanation

Explanation / Answer

For Journal Entry No. 10, You need to give full information about the prior work because the income tax will be calculated @20% of income before giving dividend. And for that we need to construct the income statement to figure out the income tax amount.

No. Account Titles and Explanation Debit Credit 3 Bad Debt Expense $130 Allowance for Doubtful Accounts $130 (To record bad debt expense) *$4,330 x 3% = $130 4 Depreciation Expense $60 Accumulated Depreciation - Equipment $60 (To record depreciation) *[($3,280 - $400) / 4 years] / 12 months = $60

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