REQUIRED: Based on the information above, record the adjusting journal entries t
ID: 2396508 • Letter: R
Question
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.ANALYZE: ent Saved a.-b. Merchandise Inventory, before adjustment, has a balance of $6,600. The newly counted inventory balance c. Unearned Seminar Fees has a bal lance of $5,100, 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 $6,600 for six months' insurance paid in advance on May 1, 2019. e. Store equipment costing $12.890 was purchased on March 31, 2019. It has a salvage value of $410 and a useful life of four years f. Employees have earned $160 that has not been paid at June 30, 2019 9. The employer owes the following taxes on wages not paid at June 30, 2019: SUTA, $4.80: FUTA, $0.96; Medicare, $2.32; and social security, $9.92 h. Management estimates uncollectible accounts expense at 1 percent of sales. This year's sales were $1,100,000. i. Prepaid Rent has a balance of $5.250 for six months' rent paid in advance on March 1, 2019. J. The Supplies account in the general ledger has a belance of $310. A count of supplies on hand at June 30, 2019, indicated $105 of supplies remain. k. The company borrowed $13,700 from First Bank on June 1, 2019, and issued a four-month note. The note bears interest at 12 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 Analyze: After all adjusting entries have been journalized and posted, what is the balance of the Prepaid Rent account? Complete this question by entering your answers in the tabs below. General ournal Analyze Based on the above information, record the adjusting journal entries that must be made for Sufen Consulting on June 30, K Prev 2 of 2 Next
Explanation / Answer
Analyze:
Balance of Prepaid rent account: $1750
Transaction General Journal Debit Credit a. Cost of goods sold 6600 Merchandise inventory 6600 (To record adjustment for beginning inventory) b. Merchandise inventory 7100 Cost of goods sold 7100 (To record adjustment for ending inventory) c. Unearned seminar fees 2040 Seminar fees revenue ($5100 x 2/5) 2040 (To record seminar fees earned) d. Insurance expense ($6600 x 2/6) 2200 Prepaid insurance 2200 (To record insurance expired) e. Depreciation expense [($12890 - $410) x 3/48] 780 Accumulated depreciation-store equipment 780 (To record depreciation expense) f. Wages expense 160 Wages payable 160 (To record unpaid wages) g. Payroll tax expense 18 SUTA payable 4.8 FUTA payable 0.96 Medicare tax payable 2.32 Social security tax payable 9.92 (To record payroll taxes payable) h. Uncollectible accounts expense (1% x $1100000) 11000 Allowance for uncollectible accounts 11000 (To record uncollectible accounts expense) i. Rent expense ($5250 x 4/6) 3500 Prepaid rent 3500 (To record rent expired) j. Supplies expense ($310 - $105) 205 Supplies 205 (To record supplies used) k. Interest expense ($13700 x 12% x 1/12) 137 Interest payable 137 (To record interest accrued)Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.