I NEED HELP MAIKING A GENERAL JOURNAL FOR THIS Jordan Company’s annual accountin
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Question
I NEED HELP MAIKING A GENERAL JOURNAL FOR THIS
Jordan Company’s annual accounting year ends on December 31. It is now December 31, 2015, and all of the 2015 entries have been made except for the following:
The company owes interest of $640 on a bank loan. The interest will be paid when the loan is repaid on September 30, 2016. No interest has been recorded.
On September 1, 2015, Jordan collected six months’ rent of $4,440 on storage space. At that date, Jordan debited Cash and credited Unearned Revenue for $4,440.
The company earned service revenue of $2,700 on a special job that was completed December 29, 2015. Collection will be made during January 2016. No entry has been recorded.
On November 1, 2015, Jordan paid a one-year premium for property insurance of $3,840, for coverage starting on that date. Cash was credited and Prepaid Insurance was debited for this amount.
At December 31, 2015, wages earned by employees but not yet paid totaled $1,200. The employees will be paid on the next payroll date, January 15, 2016.
Depreciation of $1,100 must be recognized on a service truck purchased this year.
The income after all adjustments other than income taxes was $29,400. The company's income tax rate is 20%. Compute and record income tax expense.
Jordan Company’s annual accounting year ends on December 31. It is now December 31, 2015, and all of the 2015 entries have been made except for the following:
Explanation / Answer
Serial NUmber Paticulars Amount(Dr) Amount(Cr) 1) Interest Expense A/c Dr 640 To Interest PAyable 640 2) Unearned Revenue A/c 2940 To Rent Revenue A/c 2940 (4440*4/6) 3) Accounts Receivable A/c 2700 To Service REvenue 2700 4) Insurance Expense A/c Dr 640 To Prepaid Insurance A/c 640 3840x2/12 =640 5) Wages A/c 1200 TO wages payable A/c 1200 6) Depreciation Expense A/c 1100 TO Accumulated Deprecaiton A/c 1100 7) Income Tax Expense A/c 5880 To Income Tax Payable 5880 29400x20%=5880
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