Please help with these Accounting adjusting entries!!! It’s hw thats due 2morrow and im really confused :(?
Question by jinglebellz: Please help with these Accounting adjusting entries!!! It’s hw thats due 2morrow and im really confused :(?
1. Prepare the year end adjusting entries for the following items:
a.Wages paid during the year totaled $ 182,500 and have been recorded. Wages and salaries for the two plus weeks ended December 31, 2007 amount to $ 8,200 and will be paid on Friday January 4, 2008.
b.On July 1, 2007 Bibliomaniac Corporation renewed a 12-month general liability insurance policy for $ 13,200 (last year’s premium was $ 10,000). The premium was paid in full and debited to Prepaid insurance.
c.Purchases of office supplies during 2007 were debited to Supplies inventory. A physical count and valuation of the supplies on hand at December 31, 2007 was $ 3,820.
d.Equipment which cost $ 510,000 is being depreciated on a straight-line basis over 15 years. The estimated residual value is $ 0. The equipment was purchased on January 1, 2002.
e.Bibliomaniac Corporation sells a high quality monthly magazine annual subscription for $ 60 which entitles the subscriber to receive 12 monthly issues. On December 31, 2006 the balance in the Subscriptions received in advance account was $ 42,000. During 2007, 1,500 new subscriptions were sold and credited to Subscriptions received in advance. The shipping department advises that 17,760 magazines were shipped to subscribers in 2007.
f.The Note payable represents a 20-year loan taken out on October 1, 2000. The interest rate is 9% per annum and interest is due every six months on March 31 and September 30. All payments due in 2007 have been made.
g.A physical count of merchandise inventory on hand as at December 31, 2007 could only locate inventory with a cost of $ 142,260. In the retail industry it is common to discover inventory on hand is less than in the accounting records, due to error, theft, etc. This reduction in inventory is referred to as “inventory shrinkage” and is charged to Cost of Goods Sold.
h.Tax payments have been made during 2007 and are debited to income tax expense when made. Actual income tax expense for 2007 is $ 36,670 and Bibliomaniac Corporation is required to pay the balance due by April 15, 2008.
Best answer:
Answer by Brad Son of Dad
This is too much for one person to take the time to answer. I would suggest reading your book. I’m sure you can find your answer if you read it really well.
What do you think? Answer below!
