Making adjusting entries for fiscal year


Q1) Essay Petra industries have fiscal year (FYE) of May 31. Make adjusting entries for 2008 (FYE) based on data given below.

 

a. Balance in office supplies before adjustment is $4,200. Physical count reveals $3,350 of supplies on hand at financial year end.

 

b. Computer was purchased at starting of (FYE) for $23,000. Computer has useful life of 4 years and $3,000 salvage value. Utilize straight line method to compute depreciation.

 

c. Three year insurance policy costing $3,960 was bought on Sept. 1st 2007.

 

d. Employee's salaries are owed for 2 days of regular 5 day work week. Weekly payroll $8,700.

 

e. Unearned Maintenance Revenue has balance of $19,000 before adjustment. Record illustrate that $6,515 of that amount has been earned by FYE.

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Accounting Basics: Making adjusting entries for fiscal year
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