Reference no: EM132315923
Question
Record the necessary adjusting journal entry for for each of the following on December 31, the end of the current fiscal year. On August 1, the company paid $600 for a one year insurance policy beginning that day. The original journal entry was: prepaid insurance $600 debit
Cash. $600 credit.
Record the adjusting journal entry.(calculate amount used from August 1 through December 31)
On January 1, the balance in supplies was $800. During the period, purchases of supplies were $950. Defective supplies costing $100 were returned. On December 31, physical count revealed that supplies on hand were $380. Let's look at the T account for supplies:
Supplies
$800. $100
$950
______
$380 balance.
Hnow did it get to that balance? How can you do the adjusting entry?
On May1, the company purchase equipment costing $20,000. The equipment was estimated to have a useful life of five years and a trade in value of $2,000.
The company uses straight line depreciation. Record the journal entry for depreciation expense from May 1 through December 31.
Calculate the annual depreciation based on the formula and then divide use the correct accounts for depreciation when you record the adjusting journal entry.
The weekly payroll of $8,000 will be paid on Friday, January 2. Each day's salary is the same during the five day work week. Calculate the accrued salary up to December 31. Do the adjusting entry.