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29E_3

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Horngren'S Financial And Managerial Accounting
Found in: Page 167

Short Answer

Question :The worksheet of Best Jobs Employment Service follows but is incomplete.The following data at April 30, 2018, are given for Best Jobs Employment Service: a. Service revenue accrued, $700. b. Office supplies used, $300. c. Depreciation on equipment, $1,300. d. Salaries owed to employees, $1,400. Requirements 1. Calculate and enter the adjustment amounts directly in the Adjustments columns. Use letters a through d to label the four adjustments. 2. Calculate and enter the adjusted account balances in the Adjusted Trial Balance columns. 3. Prepare each adjusting journal entry calculated in Requirement 1. Date the entries, and include explanations

Adjusting entries are as follows:

Journal entry

Date

Accounts and Explanation

Debit

Credit

April 30,2018

Accounts Receivable

$700

Service Revenue

$700

To record service revenue accrued

April 30,2018

Supplies Expense

$300

Office Supplies

$300

To record office supplies used

April 30,2018

Depreciation Expense—Equipment

$1,300

Accumulated Depreciation—Equipment

$1,300

To record depreciation on equipment

April 30,2018

Salaries Expense

$1,400

Salaries Payable

$1,400

To record accrued salaries expense

See the step by step solution

Step by Step Solution

Step-by-Step-SolutionStep1: Explanation on Adjusted Trial Balance

Adjusted trial balance is prepared after the journalizing and posting of adjusting entries in the books of accounts.

Step2: Explanation on Adjusting Entries

Adjusting entries records the accrued revenues and expenses at the end of the accounting period.

Most popular questions for Business-studies Textbooks

Question :Laughter Landscaping has collected the following data for the December 31 adjusting entries: a. Each Friday, Laughter pays employees for the current week’s work. The amount of the weekly payroll is $8,000 for a five-day workweek. This year, December 31 falls on a Tuesday. Laughter will pay its employees on January 3. b. On January 1 of the current year, Laughter purchases an insurance policy that covers two years, $8,000.c. The beginning balance of Office Supplies was $4,300. During the year, Laughter purchased office supplies for $5,600, and at December 31 the office supplies on hand total $1,500. d. During December, Laughter designed a landscape plan and the client prepaid $6,500. Laughter recorded this amount as Unearned Revenue. The job will take several months to complete, and Laughter estimates that the company has earned 40% of the total revenue during the current year. e. At December 31, Laughter had earned $3,000 for landscape services completed for Turnkey Appliances. Turnkey has stated that it will pay Laughter on January 10. f. Depreciation for the current year includes Equipment, $3,000; and Trucks, $2,200. g. Laughter has incurred $250 of interest expense on a $550 interest payment due on January 15. Requirements 1. Journalize the adjusting entry needed on December 31 for each of the previous items affecting Laughter Landscaping. Assume Laughter records adjusting entries only at the end of the year. 2. Journalize the subsequent journal entries for adjusting entries a, d, and g.

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