Reference no: EM132628713
The following information is available for M&M Johnson Inc.:
a. The December 31, 2017, supplies inventory balance is $85,000. A count of supplies reveals that the company actually has $30,000 of supplies on hand.
b. As of December 31, 2017, Johnson Inc. had not paid the rent for December. The monthly rent is $2,400.
c. On December 20, 2017, Johnson collected $18,000 in customer advances for the subsequent performance of a service. Johnson recorded the $18,000 as unearned revenue, and as of December 31 two-thirds of the service had been performed.
d. The total cost of Johnson's fixed assets is $500,000. Johnson estimates that the assets have a useful life of ten years and uses the straight-line method of depreciation.
e. Johnson borrowed $10,000 at an annual rate of 12 percent on July 1, 2017. The first interest payment will be made on January 1, 2018.
f. Johnson placed several ads in local newspapers during December. On December 31, the company received a $28,000 bill for the ads, which was not recorded at that time.g.On July 1, 2017, Johnson paid the premium for a one-year life insurance policy. The $350 cost of the premium was capitalized when paid.
Problem 1: Prepare the adjusting journal entries necessary on December 31, 2017.(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Review the unadjusted balance in accumulated depreciation
: Review the unadjusted balance in Accumulated depreciation, and prepare the necessary adjusting entry to record the monthly depreciation, if any.
|
Problem - Entries for discounted note payable
: Problem - Entries for discounted note payable - Journalize the entries to record (a) the issuance of the note and (b) the payment of the note at maturity
|
Prepare journal entry to record the transaction from january
: On January 1, 2016, Pinky Pop Company sold a piece of land, Prepare journal entries to record the transactions from January 1, 2016 to December 31, 2018.
|
Integration of faith and intellect
: Do not be conformed to this world, but be transformed by the renewal of your mind, that by testing you may discern what is the will of God
|
Create adjusting journal entries necessary on december
: Prepare the adjusting journal entries necessary on December 31, 2017.(Credit account titles are automatically indented when amount is entered.)
|
Determine the proceeds received by the borrower
: A borrower has two alternatives for a loan: (1) issue a $180,000, 45-day, 10% note. Determine the proceeds received by the borrower in each situation
|
Journalize TKR Enterprises entries to record issuance
: TKR Enterprises issues a 30-day note for $570,000 to Sweeney Industries for merchandise inventory. Journalize TKR Enterprises entries to record issuance
|
Determine what amount of each annual installment payment
: Jia borrows $50,000 at 10 percent annually compounded interest to be repaid, What is the amount of each annual installment payment?
|
Prepare the current liabilities section of the balance sheet
: The federal tax rate is 40%. A quarterly tax payment will be made on April 7, 2013. Prepare the Current Liabilities section of the balance sheet
|