Question

Please answer the whole question.

Refer to the following Hawkeye Ranges.

1. As of December 31, 2017, employees had earned $855 of unpaid and unrecorded salaries. The next payday is January 4, at which time $1,522 of salaries will be paid.
2. The cost of supplies still available at December 31, 2017, is $2,575.
3. The notes payable requires an interest payment to be made every three months. The amount of unrecorded accrued interest at December 31, 2017, is $1,375. The next interest payment, at an amount of $1,650, is due on January 15, 2018.
4. Analysis of the unearned member fees account shows $5,342 remaining unearned at December 31, 2017.
5. In addition to the member fees included in the revenue account balance, the company has earned another $8,601 in unrecorded fees that will be collected on January 31, 2018. The company is also expected to collect $8,000 on that same day for new fees earned in January 2018.
6. Depreciation expense for the year is $12,142.

Required:
1. Complete the six-column table by entering adjustments that reflect the above information.

2. Prepare journal entries for the adjustments entered in the six-column table for part 1.

3. Prepare journal entries to reverse the effects of the adjusting entries that involve accruals.

4. Prepare journal entries to record the cash payments and cash collections described for January. (Assume reversing entries were prepared.)

Answer 1

Account Names			Unadjusted Trial Balance		Adjustments		Adjusted Trial Balance
			Debit	Credit	Debit	Credit	Debit	Credit
Cash			12,400				12,400
Accounts Receivable			0		8,601		8,601
Office Supplies			5,245			2670	2575
Equipment			126,480				126,480
Accumulated dep-Equipment				24284		12142		36426
Interest payable				0		1,375		1,375
Salaries payable				0		855		855
Unearned member fees				13355	8013			5,342
Notes payable				55000				55,000
P. Hawkeye, Capital				50,332				50,332
Withdrawals			18600				18600
Member fees earned				50592		16614		67206
Depreciation expense			0		12142		12,142
Salaries expense			26,713		855		27568
Interest expenses			4,125		1,375		5500
Supplies expenses			0		2670		2670
Total			193,563	193563	33,656	33,656	216,536	216,536
Adjusting entries
a.	Salaries expenses			855
	Salaries payable				855
b.	Supplies expenses			2670
	office supplies				2670
c.	Interest expense			1375
	interest payable				1375
d.	unearned member fees			8013
	Member fees earned				8013
e.	Accounts receivable			8601
	Member fees earned				8601
f.	Depreciation expense			12142
	Accumulated depreciation				12142
Reversing entries
a.	Salaries payable			855
	Salaries expense				855
b.	No entry
c.	Interest payable			1375
	Interest expenses				1375
d.	No entry
e.	No entry
f.	No entry
Req 4.
Journal entries:
a.	Salaries expenses			1522
	Cash				1522
b.	No entry
c.	Interest expenses			1650
	Cash				1650
d.	no entry
e.	Cash account			16601
	Accounts receivable				8601
	Member fees earned				8000
f.	No entry