Question

a. 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 e. 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. f. Employees have earned $240 that has not been paid at June 30, 2019. g. The employer owes the following taxes on wages not paid at June 30, 2019. SUTA, $7.20; 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 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. company has a June 30 fiscal year-end. 3 Analyze: After all adjusting entries have been joumalized and posted, what is the balance of the Prepaid Rent account? Complete this question by entering your answers in the tabs below. search

Answer 1

Transaction	General Journal	Debit	Credit
a.	Cost of goods sold	7400.00
	Merchandise inventory		7400.00
	(To record adjustment for beginning inventory)
b.	Merchandise inventory	7900.00
	Cost of goods sold		7900.00
	(To record adjustment for ending inventory)
c.	Unearned seminar fees	2360.00
	Seminar fees revenue ($5900 x 2/5)		2360.00
	(To record seminar fees earned)
d.	Insurance expense ($11400 x 2/6)	3800.00
	Prepaid insurance		3800.00
	(To record insurance expired)
e.	Depreciation expense [($13450 - $490) x 3/72]	540.00
	Accumulated depreciation-store equipment		540.00
	(To record depreciation expense)
f.	Wages expense	240.00
	Wages payable		240.00
	(To record unpaid wages)
g.	Payroll tax expense	18.00
	SUTA payable		7.20
	FUTA payable		1.44
	Medicare tax payable		3.48
	Social security tax payable		14.88
	(To record payroll taxes payable)
h.	Uncollectible accounts expense (1% x $1900000)	19000.00
	Allowance for uncollectible accounts		19000.00
	(To record uncollectible accounts expense)
i.	Rent expense ($6450 x 4/6)	4300.00
	Prepaid rent		4300.00
	(To record rent expired)
j.	Supplies expense ($390 - $145)	245.00
	Supplies		245.00
	(To record supplies used)
k.	Interest expense ($8800 x 6% x 1/12)	44.00
	Interest payable		44.00
	(To record interest accrued)

Analyze:

Balance of Prepaid rent account: $2150

$6450 - $4300 = $2150