Question : 181. On January 2, Safe Boating Monthly received a check for : 1239712

 

181. On January 2, Safe Boating Monthly received a check for $96 from a subscriber for a 12-month subscription. The January issue was mailed on January 15th. Prepare the necessary entries for the month of January. 

 

182. Prepare the December 31 adjusting entries for the following transactions.  Omit explanations.1.  Fees accrued but unbilled total $6,300.2.  The supplies account balance on December 31 is $4,750.  Supplies on hand are $960.3.  Wages accrued but not paid are $2,700.4.  Depreciation of office equipment is $1,650.5.  Rent expired during year, $10,800. 

Date

Description

Post. Ref.

Debit

Credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

183. Prepare adjusting entries for the following transactions: 

(a)

The beginning balance of the Supplies account was $245.  During the month, the company bought additional supplies in the amount of $735.  At the end of the month, a physical inventory showed $343 of unused supplies.

(b)

The company has a 12% note payable in the amount of $17,000 due in 6 months. The interest expense for the month has not been recorded.

(c)

The company has two employees.  The manager is paid on the 15th of every month for work performed during the first half of the month and on the 1st of the following month for the work performed during the second half of the month. His monthly salary is $5,500.  The other employee is paid $650 for each 5-day work week (Monday – Friday).  The last day of the month fell on Thursday.

(d)

The unearned revenue account shows a balance of $46,000.  According to the manager, 60% of that amount has been earned.

(e)

At the end of the month, $5,700 of services have been performed but not yet billed.

 

 

 

 

 

184. At the end of the fiscal year, the following adjusting entries were omitted: 

(a)

No adjusting entry was made to transfer the $1,750 of prepaid insurance from the asset account to the expense account.

(b)

No adjusting entry was made to record accrued fees of $525 for services provided to customers.

 

 

Assuming that financial statements were prepared before the errors were discovered, indicate the effect of each error, considered individually, by inserting the dollar amount in the appropriate spaces.  Insert “0” if the error does not affect the item. 

 

 

Error (a)

Error (b)

 

 

Over-stated

Under-stated

Over-stated

Under-stated

(1)

Assets at December 31 would be

$

$

$

$

 

 

 

 

 

 

(2)

Liabilities at Dec. 31 would be

$

$

$

$

 

 

 

 

 

 

(3)

Net income for the year would be

$

$

$

$

 

 

 

 

 

 

(4)

Stockholders’ equity at Dec. 31 would be

$

$

$

$

 

 

 

 

 

 

 

185. On April 30, a business estimates depreciation on equipment used during the first year of operations to be $2,900. (a) Journalize the adjusting entry required as of April 30.  (b) If the adjusting entry in (a) were omitted, which items would be erroneously stated on (1) the income statement for the year and (2) the balance sheet as of April 30?