Preparing Adjusting Entries assignment help
On November 30, the end of the current fiscal year, the following information is available to assist Allerton Company’s accountants in making adjusting entries:
-
Allerton’s Supplies account shows a beginning balance of . Purchases during the year were . The end-of-year inventory reveals supplies on hand of .
-
The Prepaid Insurance account shows the following on November 30:
Beginning $4720
July 1 $4200
October 1 $7272
The beginning balance represents the unexpired portion of a one-year policy purchased in September of the previous year. The July 1 entry represents a new one-year policy, and the October 1 entry represents additional coverage in the form of a three-year policy.
The following table contains the cost and annual depreciation for buildings and equipment, all of which Allerton purchased before the current year:
Account Cost Annual Depreciation
Building $298000 $16000
Equipment $374000 $40000
-
On October 1, the company completed negotiations with a client and accepted an advance of for services to be performed monthly for a year. The was credited to Unearned Services Revenue.
-
The company calculated that, as of November 30, it had earned on an contract that would be completed and billed in January.
-
Among the liabilities of the company is a note payable in the amount of . On November 30, the accrued interest on this note amounted to .
-
On Saturday, December 2, the company, which is on a six-day workweek, will pay its regular employees their weekly wages of .
-
On November 29, the company completed negotiations and signed a contract to provide services to a new client at an annual rate of .
REQUIRED
1. Prepare adjusting entries for each item listed above.
2. CONCEPT Explain how the conditions for revenue recognition are applied to transactions e and h.
For any questions, feedback, or comments, we have an ethical customer support team that is always waiting on the line for your inquiries.