Year and Prepcre ayertihe entries o Decermber 31, 2003, for each ofthe followlng
ID: 2596080 • Letter: Y
Question
Year and Prepcre ayertihe entries o Decermber 31, 2003, for each ofthe followlng: Estimateddepreciation onthe equipmettwasS6500fortheyear. 4. A awyer received $1.500 on November I, for three months services. U The ccount has a balance-ofS1.30Supplies on handon 8At the end of December,$500 in services have been earned, but not recorded 2 Accrued wases at 1231 were $2000 of Decem ncarned Seryice Fees ed for the amo S. The Prepaid Insurance account bas a balance of $800: It isestimated That $350, of this smount 7. er 1, the company s rent in advance on a warehouse debited Prepaid Rent for $6,000. 9 The company uses the allowance method for recording bad debts. On December 31, the wance account has a $100 credit balance. The company estimates that 1% of its $500,000 in generaTedgers owSTA,0 0,12% 0-montnote payable, datedGaobeT NOettres have been made to date for accrued interest. The general ledger shows a $6,00 , 10%, one-yearn terecevable dateaTayT Noen resp ve been made to date for accrued interest 10. "c y D 1 120 11. Accom-Dep-egu 3So 3So , 000 Pert 49gExplanation / Answer
Journal Entries :
Date Accounts Titles and explanations Debit $ Credit dec 31 Depreciation expense - equipment 6500 Accumulated Depreciation - equipment 6500 dec 31 Salaries and wages expense 2000 Salaries and wages payable 2000 (being the accrued wages booked) dec 31 Utility expenses 350 Cash 350 (being unrecorded utility bill booked) Dec 31 Unearned service fees 1000 Service Fees earned 1000 (being 2 months service fees earned booked) Dec 31 Insurance expense 350 Prepaid Insurance 350 (being insurance expense booked) Dec 31 Supplies expense 700 Supplies 700 (being supplies expense booked) Dec 31 Rent Expense 4000 Prepaid rent 4000 (being rent expense booked for four months since sept 1) dec 31 Accounts Receivable 500 Service Fees 500 dec 31 Bad Debts 4900 Allowance for Doubtful accounts 4900 (being bad debts of the balance of Allowance account ie. (500000*1%) - 100 = $4900 Dec 31 Interest expense 120 Interest payable 120 (being interest booked for three months 4000*12% * 3/12 = 120) Dec 31 Interest receivable 300 Interest revenue 300 (being interest revenue booked of the note receivable)Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.