Prepare adjusting entries that were made by the dunbar zoo

Assignment Help Financial Accounting
Reference no: EM132483877

The Dunbar Zoo operates a drive-through tourist attraction in Hamilton. The selected accounts appearing below reflect balances on January 1, 2017.

  1. Prepaid Rent (expires on Nov 30, 2017): 11,000
  2. Prepaid Insurance (expires on Sep 30, 2017): 9,000
  3. Car: 30,000
  4. Accumulated Amortization - Car: 2,000
  5. Unearned Ticket Revenue: 15,000

Other Data

Point 1: On December 1, 2017 the Zoo renewed the rent contract for another year for $18,000 to be paid in three installments. The first installment is due on April 1, 2018.

Point 2: On October 1, 2017, the Zoo renewed the insurance policy for six months and paid $6,000. The full amount was recorded as an expense.

Point 3: The unearned ticket revenue represents tickets sold in advance for future zoo visits. During 2002, additional $12,000 of tickets were sold in advance and were recorded as revenue earned. On December 31, 2017, it was determined that $4,000 of the tickets sold in advance were not used by customers.

Point 4: A utility bill for $2,000 was received on December 31, 2017 for the amount of utility used up during November and December 2017. The bill is due on January 15, 2018.

Point 5: On December 1, 2017, the Zoo signed a contract with the Mifflin Food to supply food for the animals for an amount of $500 per month, effective January 1, 2018. The Zoo paid $4,000 in advance and recorded it as an asset.

Required

Question 1: Prepare the adjusting entries that were made by the Dunbar Zoo on December 31, 2017. If no adjusting entry is required, please type "NO ENTRY" in the appropriate space.

Reference no: EM132483877

Questions Cloud

Finding critical regions : If you decide to use an alpha level of .05, what is the z-score that you will use as a cutoff score for the hypothesis test?
Determine debt vs equity : Determine DEBT VS EQUITY. Why do you think debt offerings are more common than equity offerings and typically much larger as well?
What is the probability density function of w : Customers arrive in a certain shop according to an approximate Poisson process at a mean rate of 10 per hour. Let W denote the waiting time in minutes
Determine the allowance for uncollectible accounts : The company estimates that 20% of accounts receivable will uncollectible. After correct adjusting entry has been made, the allowance for uncollectible accounts
Prepare adjusting entries that were made by the dunbar zoo : Prepare the adjusting entries that were made by the Dunbar Zoo on December 31, 2017. If no adjusting entry is required, please type "NO ENTRY"
Probability of success on a single trial : Consider a binomial experiment with n = 8 trials where the probability of success on a single trial is p = 0.25. (For each answer, enter a number.
Larger average attendance : Data collected during a major league baseball season indicated a strong correlation (0.859) between
Determine the amount of the annual rental payment : The fair value of the equipment on January 1, 2020, is $140,000, and its cost is $110,000. Determine the amount of the annual rental payment
How accounts receivable can impact liquidity ratios : How accounts receivable can impact liquidity and solvency ratios. Additionally, you may notice some companies use total receivables instead of net receivables

Reviews

Write a Review

Financial Accounting Questions & Answers

  Assume that the securities are available-for-sale securities

As a long-term investment, Fair Company purchased 20% of Midlin Company’s 300,000 shares for $360,000 at the beginning of the reporting year of both companies. During the year, Midlin earned net income of $135,000 and distributed cash dividends of $0..

  Uses the equity method to account for the investment

Yaro Company owns 25% of the common stock of Dew Co. and uses the equity method to account for the investment. During 2013, Dew reported income of $250,000 and paid dividends of $80,000. There is no amortization associated with the investment. During..

  Define and describe net present value

For this assignment, you need to develop a capital budget. It is important to know what the cafe managers should consider within their capital budget. You must also define the key terms necessary to understand capital budgeting.

  Tax deduction immediately upon payment

According to AASB 112, the prepayment of rent of $2,000 that is claimed as a tax deduction immediately upon payment (assuming an income tax rate of 30%) will give rise to:

  Research discuss and explain five differences between gaap

Research, discuss, and explain five differences between GAAP (Generally Accepted Accounting Principles) and IFRS (International Accounting Standards Committee). Analyze the accounting implications with examples. Give proper references.

  What communications would you be required

The portfolio, which consisted of traded securities, had increased in market value by $5 million. Materiality for the audit was $10 million. What communications would you be required to make to those charged with governance?

  Accrual accounting and adjusting entries

Accrual Accounting and Adjusting Entries. Prepare the necessary adjusting journal entries at December 31. For each of the adjusting entries, indicate which of the following type of entry was recorded: accrued expense, accrued revenue, deferred expens..

  What type of reorganization has taken place

AS a result of the merger , Target's shareholders received common stock in Parent having a fair market* value of $400,000 , and non - convertible bonds.

  Calculate and record the depreciation expense for one month

Calculate and record the depreciation expense for one month for the: Delivery Van using the straight line method and the Shop & Showroom

  Illustrate what is amount of the gain she must recognize

The building was subjected to a mortgage of $75,000 which Jo assumed. Her basis in the stock she surrendered was $10,000. Illustrate what is the amount of the gain she must recognize?

  Entry to record the current calendar year depreciation

Martinez Company owns a building that appears on its prior year-end balance sheet at its original $572,000 cost less $429,000 accumulated depreciation. Determine the building’s age (plant asset age) as of the prior year-end balance sheet date. Prepar..

  Construct a new pension worksheet to submit in excel

Acct 311- Construct a new pension worksheet to submit in Excel or Word format, using the sample worksheet below. Complete sheet.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd