The ledger of Casper Consulting at January 31, 2014 includes the following selected accounts:DebitCreditPrepaid insurance.$ 3,600Supplies1,800Building100,000Land60,000Notes payable..$90,000Unearned service revenue...8,000Casper's accountant is inexperienced, and he would like your help in preparing the company'syearend January 31, 2014 financial statements. Casper follows ASPE and makes adjustingentries only at year end. The accountant has provided you with the following information:1. A one-year insurance policy costing $3,600 was purchased on January 1, 2014. At that timethe full amount was debited to prepaid insurance.2. A physical inventory count on January 31, 2014 revealed $800 in supplies were stillremaining.3. Land and building were purchased on February 1, 2013 at a cost of $160,000. The buildinghas an expected useful life of 20 years. The purchase was financed by paying $70,000 incash and the balance on a 2-year, 8% note payable. Interest on the note is due at maturity.4. Unearned service revenue related to a client retainer paid on January 15, 2014. On January31, 2014, one-quarter of this amount has been earned.InstructionsPrepare the adjusting journal entries required at January 31, 2014.

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Description: The ledger of Casper Consulting at January 31, 2014 includes the following selected accounts:DebitCreditPrepaid insurance.$ 3,600Supplies1,800Building100,000Land60,000Notes payable..$90,000Unearned service revenue...8,000Casper's accountant is inexp

Adjusting Entries- An adjusting journal entry is one that occurs in a company's general ledger at…

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Accounting

The ledger of Casper Consulting at January 31, 2014 includes the following selected accounts: Debit Credit Prepaid insurance. Supplies Building Land Notes payable.......... $90,000 Unearned service revenue.... 8,000 11 $ 3.600 1,800 100,000 60,000

The ledger of Casper Consulting at January 31, 2014 includes the following selected accounts: Debit Credit Prepaid insurance. Supplies Building Land Notes payable.......... $90,000 Unearned service revenue.... 8,000 11 $ 3.600 1,800 100,000 60,000

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter21: Accounting For Accruals, Deferrals, And Reversing Entries

Section: Chapter Questions

Problem 1AP

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