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. osting $13,450 was purchased on March 31, 2019. It has a salvage value of $490 and a useful life of six years f. Employees have earned $240 that has not been paid at June 30, 2019 9. The employer owes the following taxes on wages not paid at June 30, 2019. SUTA, S720; FUTA, $1.44; Medicare, $3.48; and social security, $14.88. h. Management estimates uncollectible accounts expense at 1 percent of sales. This year's sales were $1,900,000 1. Prepaid Rent has a balance of $6,450 for six months' rent paid in advance on March 1, 2019. J. 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 k. 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 Required: Based on the information above, record the adjusting journal entries that must be made for Sufen Consulting on June 30, 2019. The company has a June 30 fiscal year-end. Analyze: After all adjusting entries have been journalized and posted, what is the balance of the Prepaid Rent account? 3332 < Prex 4 arch Ollo e

Answer 1

	REF	ACCOUNT TITLE	DEBIT	CREDIT
	b	Merchandise Inventory	$500		(7900-7400)
		Cost of goods sold		$500
	c	Unearned Seminar Fees	$2,360		((2/5)*5900)
		Fees Revenue		$2,360
	d	Insurance Expenses	$3,800		((2/6)*11400)
		Prepaid Insurance		$3,800
	e	Depreciation expenses	$540		((13450-490)/6)*(3/12)
		Accumulated Depreciation		$540
	f	Wages expenses	$240
		Wages Payable		$240
	g	Taxes	$882		(720+144+3.48+14.88)
		Taxes Payable		$882
	h	Bad debt expense	$19,000		(1%*1900000)
		Provision for uncollectable		$19,000
	i	Rent Expense	$2,150		(4/12)*6450
		Prepaid Rent		$2,150
	j	Supplies Expense	$245		(390-145)
		Supplies		$245
	k	Interest expense	$44		(8800*6%*(1/12))
		Interest Payabe		$44
		Balance on Prepaid Rent Account
		(6450-2150)=	$4,300
		Balance on Prepaid Rent Account	$4,300