Prepare the required adjusting entry for each situation as of December 31, 2018 for (SBAD) Company. Suppose company had received a $1,800 shipment of supplies in October When counting the supplies on December 31, 2018, found only $500 worth of supplies on hand. Suppose (SBAD) had paid $12,000 for six months’ rent on September 1, 2018. Suppose (SBAD) had paid $6,000 for one year’s insurance on December 1, 2018. The (SBAD) company borrowed $12,000 from a local bank with 10% annual interest rate on August 1, 2018. Principal and interest will be paid on July, 31, 2019 The (SBAD) company calculated its income taxes as $40,000 for the year ended December 31, 2018.

Prepare the required adjusting entry for each situation as of December 31, 2018 for (SBAD) Company. Suppose company had received a $1,800 shipment of supplies in October When counting the supplies on December 31, 2018, found only $500 worth of supplies on hand. Suppose (SBAD) had paid $12,000 for six months’ rent on September 1, 2018. Suppose (SBAD) had paid $6,000 for one year’s insurance on December 1, 2018. The (SBAD) company borrowed $12,000 from a local bank with 10% annual interest rate on August 1, 2018. Principal and interest will be paid on July, 31, 2019 The (SBAD) company calculated its income taxes as $40,000 for the year ended December 31, 2018.

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

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 1MC: The balance in Ashwood Companys accounts payable account at December 31, 2019, was 1,200,000 before...

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