Problem 2: Faisal Repairs and services, an electronics repair store, has the following unadjustedbalance at the end of the first year.For preparing the adjusting entries, the following data were assembled:Revenues earned but unbilled on June 30 were OMR 8,000.Supplies on hand on June 30 were OMR 5000.Insurance expense for the year, OMR 3,800.Unearned Revenues on June 30th were OMR 6,000.Unpaid wages accrued on June 30 were OMR 4,800.Faisal Repairs and ServiceUnadjusted Trial Balance 30June 2017Credit (OMR)AccountDebit (OMR)Cash12,350Account Receivable50,000Prepaid Expenses17,50015,200SuppliesEquipment166,20019,750Account PayableUnearned Revenues18,000169,200CapitalDrawings18,000295,000Revenues94,500Wages Expenses72,000Rent Expense65,600Utilities Expenses8,100Miscellaneous Expenses519,450519,450TotalA. Prepare the necessary adjusting entries on 30 June 2017.B. Determine the balance of the accounts affected by the adjusting entries, and prepare theadjusted trial balance.Page 7 of 7

The adjustment entries are prepared to adjust the revenue and expenses of the current period.

ce at the end of the first year. electronics repair store, reparing the adjusting entries, the following data were assembled: Revenues earned but unbilled on June 30 were OMR 8,000. Supplies on hand on June 30 were OMR 5000. Insurance expense for the year, OMR 3,800. Unearned Revenues on June 30th were OMR 6,000. Unnaid OMR 4 800

ce at the end of the first year. electronics repair store, reparing the adjusting entries, the following data were assembled: Revenues earned but unbilled on June 30 were OMR 8,000. Supplies on hand on June 30 were OMR 5000. Insurance expense for the year, OMR 3,800. Unearned Revenues on June 30th were OMR 6,000. Unnaid OMR 4 800

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter21: Accounting For Accruals, Deferrals, And Reversing Entries

Section: Chapter Questions

Problem 1MP

See similar textbooks

Similar questions

Fragmental Co. leased a portion of its store to another company for eight months beginning on October 1, at a monthly rate of $850. Fragmental collected the entire $6,800 cash on October 1 and recorded it as unearned revenue. Assuming adjusting entries are only made at year-end, the adjusting entry made by Fragmental Co. on December 31 would be: Multiple Choice A debit to Unearned Rent and a credit to Rent Revenue for $4,250. A debit to Rent Revenue and a credit to Cash for $2.550. A debit to Rent Revenue and a credit to Unearned Rent for $2,550. A debit to Unearned Rent and a credit to Rent Revenue for $2,550. A debit to Cash and a credit to Rent Revenue for $6,800. < Prey 17 of 30 Next MacBook Air
At the end of the first year of operations mayberry advertising had account receivable of $21100. Management of the company estimates that 8% of the accounts will not be collected What adjustment would mayberry advertising record to establish allowance for accounts? Record the adjusting for allowance for uncollectibl accounts
Ernie Upshaw is the supervising manager of Sleep Tight Bedding. At the end of the year, the company’s accounting manager provides Ernie with the following information, before any adjustment. Accounts receivable $ 518,000 Estimated percent uncollectible 9% Allowance for uncollectible accounts $ 21,800 (debit) Operating income $ 338,000 In the previous year, Sleep Tight Bedding reported operating income (after adjustment) of $293,000. Ernie knows that it’s important to report an upward trend in earnings. This is important not only for Ernie’s compensation and employment, but also for the company’s stock price. If investors see a decline in earnings, the stock price could drop significantly, and Ernie owns a large amount of the company’s stock. This has caused Ernie many sleepless nights. Required:1. Record the adjusting entry for uncollectible accounts using the accounting manager’s estimate of 9% of accounts receivable. 2-a. After the adjusting entry is recorded…
Fragmental Co. leased a portion of its store to another company for eight months beginning on October 1, at a monthly rate of $1,025. Fragmental collected the entire $8,200 cash on October 1 and recorded it as unearned revenue. Assuming adjusting entries are only made at year-end, the adjusting entry made by Fragmental Co. on December 31 would be: Multiple Choice A debit to Cash and a credit to Rent Revenue for $8.200. A debit to Unearned Rent and a credit to Rent Revenue for $5,125. A debit to Rent Revenue and a credit to Unearned Rent for $3,075. m 8:05 PM 1009% e here to search 2/21/2022
6.Allowance for Doubtful Accounts has a credit balance of $1,300 at the end of the year (before adjustment). The company prepares an analysis of customers' accounts to estimate the amount of uncollectible accounts of $41,900. Which of the following adjusting entries would be made to record the bad debt expense for the year? Bacon Company acquired new machinery with a price of $15,200 by trading in similar old machinery and paying $12,700. The old machinery originally cost $9,000 and had accumulated depreciation of $5,000. In recording this transaction, Bacon Company should record Group of answer choices
Ernie Upshaw is the supervising manager of Sleep Tight Bedding. At the end of the year, the company’s accounting manager provides Ernie with the following information, before any adjustment.Accounts receivable $500,000Estimated percent uncollectible 9%Allowance for uncollectible accounts $20,000 (debit)Operating income $320,000In the previous year, Sleep Tight Bedding reported operating income (after adjustment) of $275,000. Ernie knows that it’s important to report an upward trend in earnings. This is important not only for Ernie’s compensation and employment, but also for the company’s stock price. If investors see a decline in earnings, the stock price could drop significantly, and Ernie owns a large amount of the company’s stock. This has caused Ernie many sleepless nights.Required:1. Record the adjustment for uncollectible accounts using the accounting manager’s estimate of 9% of accounts receivable.2. After the adjustment is recorded in requirement 1, what is the revised amount…
Warner Company’s year-end unadjusted trial balance shows accounts receivable of $115,000, allowance for doubtful accounts of $760 (credit), and sales of $440,000. Uncollectibles are estimated to be 1.50% of accounts receivable. Prepare the December 31 year-end adjusting entry for uncollectibles. What amount would have been used in the year-end adjusting entry if the allowance account had a year-end unadjusted debit balance of $1,100?
Theisens Farm & Auto had accounts receivable of $20,900 at the end of the first year of operations. The company estimates that 11% of the accounts will not be collected, What adjustment would Theisens Farm & Auto record to establish Allowance for Uncollectible Accounts? (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 Record the adjusting entry for Allowance for Uncollectible Accounts. Noter Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal
evables, Inc., has the following account balances at the end of the year before adjustments: Accounts Receivable $60,000 Allowance for Doubtful Accounts $100 debit balance Sales $600,000 Doubtful Accounts Expense $0 Management estimates that 13% of Accounts Receivable will be uncollectible. After the correct adjusting entry has been made, what is theAllowance for Doubtful Accounts balance on the balance sheet at year end?
Glencoe Supply had the following accounts receivable aging schedule at the end of a recent year. The balance in Glencoe’s allowance for doubtful accounts at the beginning of the year was$58,620 (credit). During the year, accounts in the total amount of $62,400 were written off.Required:1. Determine bad debt expense.2. Prepare the journal entry to record bad debt expense.3. If Glencoe had written off $90,000 of receivables as uncollectible during the year, how muchwould bad debt expense reported on the income statement have changed?
The balance in the unearned rent account for Jones Co. as of December 31 is $1,200. If Jones Co. failed to record the adjusting entry for $600 of rent earned during December, the effect on the balance sheet and income statement for December would be: A. Assets understated by $600; net income overstated by $600. B. Liabilities understated by $600; net income understated by $600. C. Liabilities overstated by $600; net income understated by $600. D. Liabilities overstated by $600; net income overstated by $600.
At the end of the year, a company has a balance in Allowance for Uncollectible Accounts of $2,600 (debit) before any year-end adjustment. The balance of Accounts Receivable is $176,000. The company estimates that 6% of accounts receivable will not be collected over the next year. Record the adjustment for uncollectible accounts. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)