Accounting Assignment: Adjusting Entries
Partial List Accounts:
Equipment, Supplies, Rent Revenue, Insurance Expense, Supplies Expense, Service Revenue, Accounts Receivable, Salaries Expense, Cash, Accumulated Depreciation-Equipment, Salaries Payable, Unearned Rent Revenue, Pre-Paid Insurance, Unearned Service Revenue
1. The supplies account had a beginning balance of $2250 and was debited $5470 for supplies purchased during the year. Journalize the adjusting entry required at the end of the year assuming supplies on-hand is $3120.
2. The Pre-Paid Insurance account had a beginning balance of $3450 and was debited $8700 for premiums paid during the year. Journalize the adjusting entry required at the end of the year assuming the amount of unexpired insurance is $5580.
3. The balance in the Unearned Service Revenue account, before adjustment at the end of the year is $288,470. Journalize the adjusting entry required assuming the amount of unearned revenue at the end of the accounting period is $209,210.
4. On October 1, Jubilee Express Flights LLC received $48000 for future rent of airplane. The agreed upon rate was $245 for each hour of flight time. At the end of the accounting period, December 31st, 88 hours of flight rental had been earned. Journalize the adjusting entry to bring the accounts up to date.
5. At the end of the current year, $5488 of service revenue had been earned, but not billed to clients. Journalize the adjusting entry to record accrued revenue.
6. Turner Chemical Company pays weekly salaries of $88,000 for a five-day week ending the previous Friday.
(a) Journalize the adjusting entry required at the end of the accounting period assuming the period ends on a Wednesday.
(b) Journalize the payroll entry on Monday, following the closing period.
7. On September 1, 2018, equipment was purchased for $339,000. The equipment has an estimated useful life of 15 years, and a salvage value of $33,000. Using the straight-line method of depreciation...
(a) Journalize the adjusting entry required to record depreciation expense for this asset in 2018, assuming the fiscal period ends on December 31, 2018.
(b) Estimate the book value of the asset on January 1, 2025
(c) Assume the equipment is sold on January 1, 2025 for $175,000, calculate the gain or loss on the sale of this asset.