Reference no: EM132561447

Questions -

Q1. Adjusting Entry for Accrued Fees

At the end of the current year, $11,760 of fees have been earned but have not been billed to clients.

a. Journalize the adjusting entry to record the accrued fees.

b. If the cash basis rather than the accrual basis had been used, would an adjusting entry have been necessary?

Q2. Adjusting Entries for Accrued Salaries

Garcia Realty Co. pays weekly salaries of $41,500 on Friday for a five-day workweek ending on that day.

a. Journalize the necessary adjusting entry at the end of the accounting period assuming that the period ends on Tuesday.

b. Journalize the necessary adjusting entry at the end of the accounting period assuming that the period ends on Wednesday.

Q3.Adjusting Entry for Supplies

The balance in the supplies account, before adjustment at the end of the year, is $1,174.

Journalize the adjusting entry required if the amount of supplies on hand at the end of the year is $552.

Q4. Adjustment for Depreciation

The estimated amount of depreciation on equipment for the current year is $3,310. Journalize the adjusting entry to record the depreciation.

Q5. Determining Fixed Asset's Book Value

The balance in the equipment account is $3,750,000, and the balance in the accumulated depreciation-equipment account is $2,025,000.

a. What is the book value of the equipment?

b. Does the balance in the accumulated depreciation account mean that the equipment's loss of value is $2,025,000?