Question

b. Merchandise Inventory, before adjustment has a balance of $7,400. The newly counted inventory balance is $7.900. c. Unearned Seminar Fees has a balance of $5,900, representing prepayment by customers for five seminars to be conducted in June, July, and August 2019. Two seminars had been conducted by June 30, 2019 d. Prepaid Insurance has a balance of $11.400 for six months' insurance paid in advance on May 1, 2019 Store equipment costing $13,450 was purchased on March 31, 2019. It has a salvage value of $490 and a useful life of six years. 1. Employees have earned $240 that has not been paid at June 30, 2019 The employer owes the following taxes on wages not paid at June 30, 2019SUTA, $7.20, FUTA, 51.44: Medicare, $3 48, and social security. $14.88 Management estimates uncollectible accounts expense at 1 percent of sales. This year's sales were $1,900,000. Prepaid Rent has a balance of $6,450 for six months' rent paid in advance on March 1, 2019. The Supplies account in the general ledger has a balance of $390. A count of supplies on hand at June 30, 2019, indicated $145 of supplies remain The company borrowed $8,800 from First Bank on June 1, 2019, and issued a four-month note. The note bears interest at 6 percent wired d on the information above, record the adjusting journal entries that must be made for Sufen Consulting on June 3 any has a June 30 fiscal year-end. all adjusting entries have been journalized and posted, what is the balance of the Prepaid Rent account? < Prev 4 of 4 Next O

Answer 1

Credits Adjustment Journal entries :- Date Accounts Title & Explanation Debit 30-Jun-19 Rent expense (6450*(4/6) 4,300 To Prepaid Rent (Entry for recording of Rent expense for 4 months rent) 4,300 245 30-Jun-19 Supplies expense (390-145) To Supplies (Entry for recording of supplies used) 245 30-Jun-19 Interest expense (8800*6%*(1/12)) To Interest Payable (Entry for recording of accrued interest for June month)