Trying to do some homework and I\'m stuck on these 10 adjusting journal entries:

Question

Trying to do some homework and I'm stuck on these 10 adjusting journal entries: 1. Wages earned by employees during December and to be paid in January are $33,875; associated payroll taxes on these wages are $2,710. 2. On July 1, a client paid CM2 $205,720 in advance for a year of consulting services. In addition, of the beginning balance in Unearned Revenue, 60% of the work has now been completed. 3. You discover that a product sale was made on account and recorded in December for $128,600; the product had not yet been shipped. The cost of the product was $68,742. 4. Bad debt expense is estimated to be 7% of ending Accounts Receivable. (Round to the nearest whole dollar.) 5. The Prepaid Expense account has a balance of $22,774. This balance includes $11,200 for a two-year insurance policy purchased on January 1, 2011. Of the remaining prepaid balance, 30% of the benefit had now expired. (round to the nearest whole dollar.) 6. Annual depreciation rates are 7% for Buildings & Equipment/Furniture. No salvage. (Round to the nearest whole dollar.) 7. The long-term liabilities were outstanding for all of 2011 and accrue interest at 6% APR. CM2 records accrued interest quarterly (interest was last updated on Sept. 30.) The company is required to pay the interest annually on January 1. 8. On December 15, CM2 declared a dividend of $110,000, to be paid on January 15, 2012. It had not yet been recorded. 9. At December 31, the Long-Term Investments (Available-for-sale securities) had a fair value of $160,186. [CM2 uses a

Explanation / Answer

1. Wages earned by employees during December and to be paid in January are $33,875; associated payroll taxes on these wages are $2,710. Wages Dr 33875, Taxes Payable Cr 2710, Wages Payable Cr 31165 2. On July 1, a client paid CM2 $205,720 in advance for a year of consulting services. In addition, of the beginning balance in Unearned Revenue, 60% of the work has now been completed. On july 1, Cash dr 205720, Unearned revenue in advance cr 205720 On dec31, Unearned Revenue in advance dr 102860,revenue for the year 102860 3. You discover that a product sale was made on account and recorded in December for $128,600; the product had not yet been shipped. The cost of the product was $68,742. Stock of customers in hand should not be recorded in books since the ownership is transferred on account. Thus no entry for stock appropriation. 4. Bad debt expense is estimated to be 7% of ending Accounts Receivable. (Round to the nearest whole dollar.) Bad debt Dr (amount not given), accounts receivable cr (amount not given) For the rest of the answers please re-post the question. Please have concern for the time devoted & rate this as lifesaver. Thank u in advance. God bless u..

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