Prepare adjusting entries in the general journal from the following information pertaining to the accounts of Eastpointe Inn as of December 31, 20X6(the end of its fiscal year):
1. The prepaid insurance account shows a balance of $15,000 representing the March 31, 20X6, premium payment for one-year fire insurance coverage from April 1, 20X6, through March 31, 20X7.
2. Equipment costing $80,000 is being depreciated using the straight-line method and an estimated useful life of five years. (Assume salvage value is $10,000) Annual depreciationhas not been recorded.
3. Wages earned by employees for December 26-31, 20X6, have not been recorded. Weekly wages (for seven years) amount to $2,100
4. Interest expense on a note payable of $50,000 has not been recorded during 20X6. The amount was borrowed on November 1, 20X5. The annual rate of Interest is 8%.
5. The Guest Deposit account (a current liability account) has a balance of $2,000 before adjustments. Of these deposits, $800 were earned during December 20X6.
adjusting entry
No | General journal | Debit | Credit |
1 | Insurance expense (15000/12*9) | 11250 | |
Prepaid insurance | 11250 | ||
2 | Depreciation expense ((80000-10000/5) | 14000 | |
Accumulated depreciation-equipment | 14000 | ||
3 | Wages expense | 2100 | |
wages payable | 2100 | ||
4 | Interest expense (50000*8%) | 4000 | |
Interest payable | 4000 | ||
5 | Unearned revenue | 800 | |
Revenue earned | 800 | ||
Prepare adjusting entries in the general journal from the following information pertaining to the accounts of...
3) Record the December 31 adjusting entries for the following transactions and events in general journal form. Assume that December 31 is the end of the annual accounting period a. The Prepaid Insurance account shows a debit balance of $2,340, representing the cost of a two-year fire insurance policy that was purchased on October 1 of the current year and has not been adjusted to date. Entry # Account Titles & explanationas Debits Credits 0 b. The Store Supplies account...
Instruction:Prepare the correct adjusting entry for the year ended December 31, 2021. Write your answer in the journal sheet or a yellow paper. Take a photo or scan your answer and upload to google form/Microsoft form.The Insurance Expense account has a debit balance on December 31, 2021 of P72,000 representing premium for a 2-year fire insurance policy effective October 1, 2021.Rent Income was credited for P36,000 on November 1, 2021, representing nine months rental collected in advance.As of December 31,...
For each of the following separate cases, prepare the required December 31 year-end adjusting entries. Entries can draw from this partial chart of accounts: Interest Receivable; Prepaid Insurance; Accumulated Depreciation Equipment; Wages Payable; Unearned Revenue; Consulting Revenue; Interest Revenue; Wages Expense; Insurance Expense; Interest Expense; and Depreciation Expense-Equipment. a. Depreciation on the company's wind turbine equipment for the year is $5,000. b. The Prepaid Insurance account for the solar panels had a $2,000 debit balance at December 31 before adjusting for the...
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