37.In the journal provided, prepare year-end adjustments for the following situations. Omit explanations.
a. Accrued interest on notes receivable is $560.
b. Of the $7,200 received in advance of earning a service, one-third was still unearned by year end.
c. Two years of rent, totaling $24,000, was paid in advance. By year end, four months' worth had expired.
d. Services totaling $685 had been performed, but not yet billed.
e. Depreciation on trucks totaled $1,700 for the year.
f. Supplies available for use during the year amounted to $3,400. However, by year end, only $700 in supplies remained.
g. Payroll for the five-day work week, to be paid on Friday, is $6,000. Year end falls on a Tuesday.
h. Estimated federal income taxes were $2,100.
38.Use the following unadjusted trial balance to prepare adjusting entries, given the additional information below it. Assume financial statements are prepared quarterly. Omit explanations.
Crivelli Financial Services
Unadjusted Trial Balance
September 30, 20x7
Cash
$ 20,000
Accounts Receivable
6,400
Office Supplies
1,000
Prepaid Rent
3,600
Office Furniture
9,600
Accumulated Depreciation–Office Furniture
$ 400
Accounts Payable
14,800
Unearned Revenue
2,000
Common Stock
20,400
Consulting Revenue
12,000
Salaries Expense
7,400
Insurance Expense
1,600
$49,600
$49,600
a. Of the revenue received in advance, 60 percent remained unearned on September 30.
b. The office furniture has an estimated five-year useful life and zero value at the end of that time. Record depreciation for the quarter.
c. Salaries earned, but unpaid, totaled $1,520.
d. The Prepaid Rent applies to the six months beginning July 1, 20x7.
e. Office supplies on hand totaled $300 at the end of the quarter.
f. Services performed but not yet billed or recorded amount to $1,800.
General Journal
Page 1
Date
Description
Post.
Ref.
Debit
Credit
