FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Prepare any
Transcribed Image Text:Supplies
Prepaid Insurance
Notes Payable
You then make inquiries and discover the following.
1.
2.
3.
4.
5.
6.
$8,740
15,000
14,700
7.
Ivanhoe rental revenues include advanced rental payments received for summer occupancy, in the amount of $57,880.
There were $1,960 of supplies on hand at June 30.
Prepaid insurance resulted from the payment of a 1-year policy on April 1, 2025.
The mail in July 2025 brought the following bills: advertising for the week of June 24, $120; repairs made June 18, $4,755;
and utilities for the month of June, $250.
Wage expense is $325 per day. At June 30, 4 days' wages have been incurred but not paid.
The note payable is a 6% note dated May 1, 2025, and due on July 31, 2025.
Income tax of $14,400 for the quarter is due in July but has not yet been recorded.
Expert Solution
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Step 1
Adjusting entries are journal entries usually made at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.
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