Reference no: EM132794755

Problem 1. Journalize the adjusting entry needed on December 31, the company's year-end, for each of the following independent cases affecting Huff Telecommunications:

(a) Details of the Prepaid Insurance account are as follows: opening balance Jan. 1 - 1,800. Purchases - April 30 2,700 and Oct 31 2,700. Huff Telecommunications pays Insurance semiannually. At December 31, part of the last payment is still available to cover Jan to April of next year.

(b) Huff Telecommunicationspays its employees each Friday. The amount of the weekly payroll is $18,000 for a five-day workweek, and the daily salary amounts are equal. The current accounting period ends on Thursday.

(c) Huff Telecommunications has received notes receivable from some clients for professional services. During the current year Huff has earned interest revenue of $1,020 which it will receive next year.

(d) The beginning balance of Supplies was 10,800. During the year the company purchased supplies costing $15,180, and at December 31 the inventory of supplies remaining on hand is $5,820.

(e) Huff Telecommunications is developing a wireless communications system for a large company and the client paid Huff Telecommunications $216,000 at the start of the project. Huff Telecommunicationsrecorded this amount as Unearned Consulting Revenue. The development will take several months to complete. Huff executives estimate that the company has earned three fourths of the total fee during the current year.

(f) Amortization for the current year includes: Office Furniture, $33,000 and Design Equipment, $38,160 and Trucks $61,920.