Homework Help is Here – Start Your Trial Now!
Business
Accounting
Adjusting Entries Allentown Services Inc. is preparing adjusting entries for the year ending December 31. The following data are available: a. Interest is owed a December 31, on a 6-month, 8% note. Allentown borrowed $100,800 from NBD on September 1. b. Allentown provides daily building maintenance services to Mack Trucks for a quarterly fee of $3,100 payable on the fifteenth of the month following the end of each quarter. No entries have been made for the services provided to Mack Trucks during the quarter ended December 31, and the related bill will not be sent until January 15 of the following year. c. On January 1, the cost of office supplies on hand was $320. During the year, office supplies with a total cost of $6,480 were purchased from Office Depot and debited to office supplies inventory. On December 31, Allentown determined the cost office supplies on hand to be $970. d. On September 23, Allentown received a $8,244 payment from Bethlehem Steel for 9 months of maintenance services beginning on October 1. The entire amount was credited to unearned service revenue when received. Required: 1. Prepare the appropriate adjusting entries at December 31. If an amount box does not require an entry, leave blank. a. Dec. 31 Interest Expense Interest Payable ✓ ✓ 4,032 X 4,032 X

Adjusting Entries Allentown Services Inc. is preparing adjusting entries for the year ending December 31. The following data are available: a. Interest is owed a December 31, on a 6-month, 8% note. Allentown borrowed $100,800 from NBD on September 1. b. Allentown provides daily building maintenance services to Mack Trucks for a quarterly fee of $3,100 payable on the fifteenth of the month following the end of each quarter. No entries have been made for the services provided to Mack Trucks during the quarter ended December 31, and the related bill will not be sent until January 15 of the following year. c. On January 1, the cost of office supplies on hand was $320. During the year, office supplies with a total cost of $6,480 were purchased from Office Depot and debited to office supplies inventory. On December 31, Allentown determined the cost office supplies on hand to be $970. d. On September 23, Allentown received a $8,244 payment from Bethlehem Steel for 9 months of maintenance services beginning on October 1. The entire amount was credited to unearned service revenue when received. Required: 1. Prepare the appropriate adjusting entries at December 31. If an amount box does not require an entry, leave blank. a. Dec. 31 Interest Expense Interest Payable ✓ ✓ 4,032 X 4,032 X

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 11RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...
See similar textbooks
icon
Related questions
Question

A-2

Adjusting Entries Allentown Services Inc. is preparing adjusting entries for the year ending December 31. The following data are available: a. Interest is owed at December 31, on a 6-month, 8% note. Allentown borrowed $100,800 from NBD on September 1. b. Allentown provides daily building maintenance services to Mack Trucks for a quarterly fee of $3,100 payable on the fifteenth of the month following the end of each quarter. No entries have been made for the services provided to Mack Trucks during the quarter ended December 31, and the related bill will not be sent until January 15 of the following year. c. On January 1, the cost of office supplies on hand was $320. During the year, office supplies with a total cost of $6,480 were purchased from Office Depot and debited to office supplies inventory. On December 31, Allentown determined the cost of office supplies on hand to be $970. d. On September 23, Allentown received a $8,244 payment from Bethlehem Steel for 9 months of maintenance services beginning on October 1. The entire amount was credited to unearned service revenue when received. Required: 1. Prepare the appropriate adjusting entries at December 31. If an amount box does not require an entry, leave it blank. a. Dec. 31 Interest Expense Interest Payable b. Feedback C. ►Check My Work Dec. 31 Accounts Receivable Feedback Service Revenue ►Check My Work Dec. 31 Supplies Expense Supplies 4,032 X X 9,300 X X 5,830 4,032 X 9,300 X 5,830
Transcribed Image Text:Adjusting Entries Allentown Services Inc. is preparing adjusting entries for the year ending December 31. The following data are available: a. Interest is owed at December 31, on a 6-month, 8% note. Allentown borrowed $100,800 from NBD on September 1. b. Allentown provides daily building maintenance services to Mack Trucks for a quarterly fee of $3,100 payable on the fifteenth of the month following the end of each quarter. No entries have been made for the services provided to Mack Trucks during the quarter ended December 31, and the related bill will not be sent until January 15 of the following year. c. On January 1, the cost of office supplies on hand was $320. During the year, office supplies with a total cost of $6,480 were purchased from Office Depot and debited to office supplies inventory. On December 31, Allentown determined the cost of office supplies on hand to be $970. d. On September 23, Allentown received a $8,244 payment from Bethlehem Steel for 9 months of maintenance services beginning on October 1. The entire amount was credited to unearned service revenue when received. Required: 1. Prepare the appropriate adjusting entries at December 31. If an amount box does not require an entry, leave it blank. a. Dec. 31 Interest Expense Interest Payable b. Feedback C. ►Check My Work Dec. 31 Accounts Receivable Feedback Service Revenue ►Check My Work Dec. 31 Supplies Expense Supplies 4,032 X X 9,300 X X 5,830 4,032 X 9,300 X 5,830
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
SEE MORE TEXTBOOKS