Reference no: EM133126525
Question - The December 31, 2021, trial balance of Bob's Delivery Service, before adjusting entries, included the following selected accounts.
Note - This is a partial trial balance. Many accounts are not shown. All accounts have a normal balance.
Accounts receivable 176,000
Notes receivable 200,000
Unearned delivery revenue 24,000
Prepaid rent 36,000
Prepaid insurance 18,000
Equipment 240,000
Accumulated depreciation: equipment 61,250
Salaries expense 120,000
Delivery revenue 473,300
Additional data:
The equipment has an estimated life of 12 years, no residual value, and the straight-line method is used for calculating depreciation.
The prepaid rent was payment for a six-month lease beginning on November 1, 2021.
The prepaid insurance represents the annual premium on a policy providing coverage starting August 1, 2021.
On September 12, 2021, we accepted a $250,000 note from a customer in payment for delivery services. It is a six month note and the interest rate is 9%. You need to count exact days to determine the interest.
The supplies inventory on January 1, 2021, was $8,350. Supplies costing $16,650 were acquired during the year. A count on Dec. 31, 2021, indicated supplies on hand of $6,810.
Required - Provide the year end adjusting journal entries for the following situations. Year end is December 31. Half the marks for this question are based on your properly formatted journal entries that follow the specific instructions in the course guide. Do these entries in the order they are presented.