Adjustment in general account balances

Assignment Help Financial Accounting

Reference no: EM1314242

Adjustment in general account balances.

Listed below are the unadjusted general ledger account balances of Olsen Company at June 30, 2009 (amounts are reflected at their normal balance):

Cash	6,775
Accounts Receivable	2,500
Office Supplies	950
Prepaid Insurance	2,000
Building	100,000
Accumulated Depreciation - Bldg.	60,000
Delivery Van	36,000
Accumulated Depreciation - Van	1,200
Accounts Payable	5,500
Unearned Rent Revenue	800
Note Payable	18,000
Common Stock	20,000
Retained Earnings	26,000
Service Revenue	39,000
Rent Revenue	4,000
Wage Expense	21,600
Insurance Expense	475
Depreciation Expense - Building	2,500
Depreciation Expense - Van	1,200
Supplies Expense	500

Additional information is available on June 30, 2009, the end of a monthly accounting period.

a. Olsen Company purchased a 2-year insurance policy on February 1, 2009 and debited Prepaid Insurance for $2,400.

b. On January 1, 2009, a tenant in an apartment building owned by Olsen Company paid six months' rent in advance. The amount received was credited to Unearned Rent Revenue.

c. A count of office supplies at June 30 revealed $240 of supplies on hand.

d. On March 31, 2009, Olsen Company purchased a delivery van for $36,000. Annual depreciation is estimated to be $7,200.

e. The depreciation on the building for June has already been recorded.

f. Olsen Company has two office employees who earn $80 and $100 per day, respectively. They are paid each Friday for a five-day work week that begins each Monday. June 30 is a Tuesday in 2009.

g. On June 1, Olsen Company signed a 6-month, 8%

Reference no: EM1314242

Questions Cloud

Hypothesis test for analysis of variance : The critical F value with 6 numerator and 60 denominator degrees of freedom at α = .05 is:

Preparation of bad debt account : Preparation of Bad debt Account and their Adjustment - What's the total f account in bad debts expense and What's the amount of the adjuster

Calculating the compound interest formula : Calculating the compound interest formula.

Objective type questions on capital budgeting : Objective type questions on capital budgeting and describe Chee Company has gathered the following data on a proposed investment project

Adjustment in general account balances : Adjustment in general account balances - Olsen Company has two office employees who earn $80 and $100 per day, respectively. They are paid each Friday for a five-day work week that begins each Monday. June 30 is a Tuesday in 2009.

Non parametric test-kruskal wallis test with box plots : Conduct post hoc comparisons with the LSD method. Which groups differ significantly at α = 0.05?

Determine cash payments for wages during the year : BLP Corporation reported wages expense of $224,000, wages payable of $89,400 at the beginning of the year and wages payable of $71,300 at the end of the year. Determine Cash payments for wages during the year

Describe questions on capital budgeting decisions : Describe questions on capital budgeting decisions and explain If salvage value is ignored in depreciating an asset for tax purposes, any sales proceeds received at the end of the life of the asset are fully taxable as income.

Identify and describe the deficiencies in the balance sheet : Identify and describe the deficiencies in the balance sheet prepared by the company's accountant. Include in your answer items that need additional disclosure, either on the face of the statement or in a note. Your answer to this question may be p..

User Account

All Pages