Adjusting EntriesOn May 31, the following data were accumulated to assist the accountantpreparingthe adjusting entries for Oceanside Realty:• Fees accrued but unbilled at May 31 are $8,640.• The supplies account balance on May 31 is $2,840. The supplies on hand at May 31are $810.• Wages accrued but not paid at May 31 are $1,090.• The unearned rent account balance at May 31 is $8,460, representing the receipt ofan advance payment on May 1 of three months' rent from tenants.• Depreciation of office equipment is $1,440.Required:1. Journalize the adjusting entries required at May 31. 2. What is the difference between adjusting entries and correcting entries?a. Both adjusting entries and correcting entries are a planned part of the accountingprocess.b. Adjusting entries are a planned part of the accounting process, correcting entriesare not planned but arise when necessary to correct errors.C. Both adjusting entries and correcting entries are not a planned part of theaccounting process.d. Correcting entries are a planned part of the accounting process, adjusting entriesare not planned but arise when necessary to adjust errors.

Adjusting entries: Adjusting entries are those entries that are recorded at the end of the year, to…

Answered: Adjusting Entries On May 31, the…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 13PA: Prepare adjusting journal entries, as needed, considering the account balances excerpted from the...

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The balance in the unearned rent account for Jones Co. as of December 31 is $1 ,20(). 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 1w: 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.
Prepare adjusting journal entries, as needed, considering the account balances excerpted from the unadjusted trial balance and the adjustment data. A. supplies actual count at year end, $6,500 B. remaining unexpired insurance, $6,000 C. remaining unearned service revenue, $1,200 D. salaries owed to employees, $2,400 E. depreciation on property plant and equipment, $18,000
Prepare adjusting journal entries, as needed, considering the account balances excerpted from the unadjusted trial balance and the adjustment data. A. depreciation on buildings and equipment, $17,500 B. advertising still prepaid at year end, $2,200 C. interest due on notes payable, $4,300 D. unearned rental revenue, $6,900 E. interest receivable on notes receivable, $1,200
The following accounts appear in the ledger of Celso and Company as of June 30, the end of this fiscal year. The data needed for the adjustments on June 30 are as follows: ab.Merchandise inventory, June 30, 54,600. c.Insurance expired for the year, 475. d.Depreciation for the year, 4,380. e.Accrued wages on June 30, 1,492. f.Supplies on hand at the end of the year, 100. Required 1. Prepare a work sheet for the fiscal year ended June 30. Ignore this step if using CLGL. 2. Prepare an income statement. 3. Prepare a statement of owners equity. No additional investments were made during the year. 4. Prepare a balance sheet. 5. Journalize the adjusting entries. 6. Journalize the closing entries. 7. Journalize the reversing entry as of July 1, for the wages that were accrued in the June adjusting entry. Check Figure Net income, 14,066
Data relating to the balances of various accounts affected by adjusting or closing entries appear below . Please journalize the missing entries. Uneraned Rent at 1/1/2019 was $5,300 and at 12/31/2019 it was $8,000. The records indicate cash receipts from rental sources during 2019 amounted to $42,500, all of which was credited to Unearned Rent Account. Prepare the missing adjusting entry. Allowance for Doubtful Accounts on 1/1/2019 was $50,000. The balance in the Allowance account on 12/31/2019 after making the annual adjusting entry was $58,000 and during 2019 bad debts written-off amounted to $30,000. Journalize the missing adjusting entry. Accumulated Depreciation-Equipment at 1/1/2019 was $210,000. At 12/31/2019, the balance of the account was $260,000. During 2019, one piece of equipment was sold. The equipment had an original cost of $40,000 and was 75% depreciated when sold. Journalize the missing adjusting entry. Retained earnings at 1/1/2019 was $140,000 and at…
On 1 May 20X0, A pays a rent bill of $1,800 for the period to 30 April 20X1. What is the charge to the income statement and the entry in the statement of financial position for the year ended 30 November 20X0?A $ 1,050 charge to income statement and prepayment of $750 in the statement of financial positionB $ 1,050 charge to income statement and accrual of $750 in the statement of financial positionC $1,800 charge to income statement and no entry in the statement of financial positionD $750 charge to income statement and prepayment of $ 1,050 in the statement of financial position Answer the question and explain why did you choose this answer
The unearned rent account has a balance of $71,354. If $17,164 of the $71,354 remains unearned at the end of the accounting period, the amount of he adjusting entry is Da. 571.354 Ob. $88,518 Dc. $17.164 Dd. $54,190
Journalize the adjusting entry for each of the following accrued expenses at the end of the current year:a. Product warranty cost, $26,800.b. Interest on the 19 remaining notes owed to Gallardo Co.
Prepare adjusting journal entries, as needed, considering the account balances excerpted from the unadjusted trial balance and the adjustment data. depreciation on fixed assets, $8,500 unexpired prepaid rent, $12,500 remaining balance of unearned revenue, $555
The balance in the prepaid rent account before adjustment at the end of the year is $11,940, which represents 12 months' rent paid on December 1. The adjusting entry required on December 31 is a-debit Rent Expense, $10,945, credit Prepaid Rent, $995 b-debit Rent Expense, $995, credit Prepaid Rent, $995 c-debit Prepaid Rent, $995, credit Rent Expense, $995 d-debit Prepaid Rent, $10,945, credit Rent Expense, $995
On June 1, 2019, Herbal Co. received $22,440 for the rent of land for 12 months. Journalize the adjusting entry required for unearned rent on December 31, 2019. Refer to the Chart of Accounts for exact wording of account titles.
Journalizing adjusting entries and analyzing their effect on the income statement The following data at July 31, 2018, are given for RCO: Depreciation, $600. Prepaid rent expires, $200. Interest expense accrued, $700. Employee salaries owed for Monday through Thursday of a five-day workweek; weekly payroll, $8,000. Unearned revenue earned $1,000. Office supplies used $150. Requirements Journalize the adjusting entries needed on July 31, 2018. Suppose the adjustments made in Requirement 1 were not made. Compute the overall overstatement or understatement of net income as a result of the omission of these adjustments.

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