Prepare the adjusting journal entries, Accounting Basics

Assignment Help:

Prepare the Adjusting Journal Entries

The ledger of Casper Consulting at January 31, 2011 includes the following selected accounts:

Casper's accountant is inexperienced, and he would like your help in preparing the company's yearend January 31, 2011 financial statements. Casper makes adjusting entries only at year end. The accountant has provided you with the following information:

1. A one-year insurance policy costing $3,600 was purchased on January 1, 2011. At that time the full amount was debited to prepaid insurance.

2. A physical inventory count on January 31, 2011 revealed $800 in supplies were still remaining.

3. Land and building were purchased on February 1, 2010 at a cost of $160,000. The building has an expected useful life of 20 years. The purchase was financed by paying $70,000 in cash and the balance on a 2-year, 8% note payable. Interest on the note is due at maturity.

4. Unearned service revenue related to a client retainer paid on January 15, 2011. On January 31, 2011, one- quarter of this amount has been earned.

Required:

Prepare the adjusting journal entries required at January 31, 2011.


Related Discussions:- Prepare the adjusting journal entries

Central Depository System, I am requesting for literature review and past s...

I am requesting for literature review and past studies on CDS.

Example of income statement, Q. Example of Income statement? Income sta...

Q. Example of Income statement? Income statement demonstrates the income statement Lyons prepared. The focal point in this income statement is on determining the cost of goods

What do you mean by supplies on hand, Q. What do you mean by Supplies on ha...

Q. What do you mean by Supplies on hand? Supplies on hand approximately each business uses supplies in its operations. It may classify supplies merely as supplies to include al

What are bad debts, Q. What are Bad debts? Bad debts -- amounts owed to...

Q. What are Bad debts? Bad debts -- amounts owed to a company which aren't going to be paid. An accountreceivable becomes a bad debt when it's recognized that it won't be paid.

Define auditing, Q. Define Auditing? Auditing A business in quest of a ...

Q. Define Auditing? Auditing A business in quest of a loan or attempting to have its securities traded on a stock exchange typically must provide financial statements to suppor

Learning objectives of trial balance, Q. Learning objectives of trial balan...

Q. Learning objectives of trial balance? - The cash basis of accounting know revenues when cash is received and recognizes expenses when cash is paid out. - The accrual basi

Journalizing payroll transactions, journalizing payroll transactions, for K...

journalizing payroll transactions, for Keller Systems;Inc, paid cash for april's payroll tax liability. withheld taxes from april payrolls; employee income tax,$532.00; social se

Objective of recording business transactions, Q. Objective of Recording bus...

Q. Objective of Recording business transactions? - Use the account as the essential classifying and storage unit for accounting information. - Articulate the effects of busi

If market interest rates are higher than the rate offered on, 1. If market ...

1. If market interest rates are higher than the rate offered on the bonds being sold, they will be sold at: A. a premium. B. a discount. C. face value. D. a loss.

Write Your Message!

Captcha
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