I am not sure about the transaction 5, 7,8, 9. Please explain and could you present the adjusting journal entries?

I am not sure about the transaction 5, 7,8, 9. Please explain and could you present the adjusting journal entries?

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Name__________________________________
Section_______________________
Fall, Inc.
The following
unadjusted
trail balance is presented for Fall, Inc. as of December 31, 2013.
Unadjusted Trial Balance
Account
Debit
Credit
Cash
Accounts receivable
Interest receivable
Rent receivable
Merchandise inventory
Prepaid rent
Supplies
Plant & equipment
Accumulated depreciation
Investment in government bonds
Accounts payable
Interest payable
Wages payable
Unearned revenue
Notes payable
Common stock
Retained earnings
Sales
Interest Income
Rent Income
Cost of goods sold
Advertising expense
Depreciation expense
Insurance expense
Interest expense
Rent expense
Supplies expense
Wages expense
Dividends
100,000
200,000
0
0
300,000
25,000
75,000
500,000
100,000
600,000
50,000
0
50,000
0
0
0
150,000
50,000
150,000
100,000
0
0
30,000
20,000
300,000
400,000
1,200,000
0
0
$2,200,000
$2,200,000
Fall, Inc. used the following information to prepare adjusting journal entries on December 31,
2013.
a.
Depreciation expense in the amount of $50,000 is recorded each year.
b.
A physical count of the merchandise inventory indicates that $100,000 is on hand at the end
of the year.
c.
The company made a $25,000 rent payment on May 1, which covers the subsequent twelve-
month period. (round to the nearest whole dollar)
d.
A physical count indicates that $35,000 of supplies is on hand at the end of the year.

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e.
The company will pay employees $30,000 for wages earned for the thirty-day period ending
January 15, 2014.
Assume that the $30,000 is earned at a rate of $1,000 per day.
f.
On October 1, 2013, the company began renting office space to a small business.
The
contract calls for rent receipts of $2,000 per month.
No rent has been received as of the
end of the year.
g.
The $20,000 note payable was issued on September 1, 2013.
It matures on January 1, 2016
and has a stated annual interest rate of 2%. [Compute by months, not days] (round to the
nearest whole dollar)
h.
As of the end of the period, one-half of the unearned sales have been earned.
i.
Unrecorded interest for 2013 on US government bonds is $500. (The interest was
earned during 2013 but will not be received until 2014.)
Required:
1. Prepare the adjusting journal entries for Fall, Inc. for 2013.
Accounts
Debit
Credit
a.
b.
c.
d.

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