Question

lame 9) Accrued wages payable at year-end should be $75,000. 10) On October 1, 2011, $600,000 was paid for a 24-month operating lease for the building. The lease will be expensed evenly over the lease period. 11) On June 1, 2011, a check for $360,000 was issued for a one-year insurance policy to be expensed evenly over the next 12 months. On June 1, 2012 a check for $480,000 was issued for a one-year insurance policy. The insurance will be expensed evenly over the next 12 months. The payment for the policy purchased in 2012 has not been recorded 12) Depreciation expense for the year on the furniture and fixtures is calculated using straight line depreciation. The life of the furniture and fixtures is 10 years and the company estimates a residual value of $5,000. 13) The company has determined that the allowance for doubtful accounts should be $40,600. 14) Dividends were declared and paid in the amount of $4,000,000 during the year. Required: a) Record all necessary transactions on the journal entry forms given b) Post the transactions to the T accounts provided c) Prepare an Adjusted Trial Balance on the form provided d) Prepare an income statement for the year ended December 31, 2012 e) Prepare a statement of retained earnings for the year ended December 31, 2012. fPrepare a balance sheet at December 31, 2012 Part A. Record transactions 1-13 below (30 points) Account title Debit Credit Entry 1)

im just looking for how to calculate journal entries 10 and 11

Answer 1

10]	Rent expense [600000/2]	$          3,00,000
	Prepaid rent		$      3,00,000
	Note:
	In 2011, 3 months rent equal to 600000*3/24 = $75000 was
	expensed. Hence, the beginning Prepaid rent shows a
	balance of $525,000 [600000-75000]
11]	Insurance expense [360000*5/12+480000*7/12]	$          4,30,000
	Prepaid insurance [480000*5/12-360000*5/12]	$             50,000
	Cash		$      4,80,000
	Note:
	Insurance expense = 150000 [beginning balance]+480000*7/12 =	$             430000
	Prepaid insurance:
	Desired balance = 480000*5/12 =	$             200000
	Less: Existing balance	$             150000
	Balance to be increased by 200000-150000 =	$               50000