A review of the ledger of D. J. Moore Company at December 31, 2012, produces the

Question

A review of the ledger of D. J. Moore Company at December 31, 2012, produces the following data pertaining to the preparation of annual adjusting entries. 1. Salaries and Wages Payable $0. There are eight salaried employees. Salaries are paid every Friday for the current week. Five employees receive a salary of $950 each per week, and three employees earn $680 each per week. Assume December 31 is a Tuesday. Employees do not work weekends. All employees worked the last 2 days of December. 2. Unearned Rent Revenue $224,676. The company began subleasing office space in its new building on November 1. At December 31, the company had the following rental contracts that are paid in full for the entire term of the lease. Date Term Monthly rent Number of leases (in months) Nov. 1 6 $5,184 4 Dec. 1 6 $8,355 2 3. Prepaid Advertising $16,301. This balance consists of payments on two advertising contracts. The contracts provide for monthly advertising in two trade magazines. The terms of the contracts are as follows. Contract Date Amount # of magazine issues A650 May 1 $7,124 13 B974 Oct. 1 9,177 21 4. Notes Payable $122,000. This balance consists of a note for one year at an annual interest rate of 9%, dated June 1. Prepare the adjusting entries at December 31, 2012. No. Date Account Title and Explanation Debit Credit 1 Dec 31. ? ? ? ? ? ? 2 Dec 31. ? ? ? ? ? ? 3 Dec 31. ? ? ? ? ? ? 4 Dec 31. ? ? ? ? ? ? THANKS!!!!!!

Explanation / Answer

Date

Description/Account

Debit

Credit

Dec. 31

Salary expense

2,320

         Salaries payable

2,320

31

Unearned rent

74,000

         Rent

74,000

31

Advertisement expense

4,800

         Prepaid advertisement expense

4,800

31

Interest expense

5,400

         Interest payable

5,400

Date

Description/Account

Debit

Credit

Dec. 31

Salary expense

2,320

         Salaries payable

2,320

31

Unearned rent

74,000

         Rent

74,000

31

Advertisement expense

4,800

         Prepaid advertisement expense

4,800

31

Interest expense

5,400

         Interest payable

5,400

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.