Prepare the adjusting journal entries, Accounting Basics

Assignment Help:

Prepare the Adjusting Journal Entries

The ledger of Casper Consulting at January 31, 2011 includes the following selected accounts:

Casper's accountant is inexperienced, and he would like your help in preparing the company's yearend January 31, 2011 financial statements. Casper makes adjusting entries only at year end. The accountant has provided you with the following information:

1. A one-year insurance policy costing $3,600 was purchased on January 1, 2011. At that time the full amount was debited to prepaid insurance.

2. A physical inventory count on January 31, 2011 revealed $800 in supplies were still remaining.

3. Land and building were purchased on February 1, 2010 at a cost of $160,000. The building has an expected useful life of 20 years. The purchase was financed by paying $70,000 in cash and the balance on a 2-year, 8% note payable. Interest on the note is due at maturity.

4. Unearned service revenue related to a client retainer paid on January 15, 2011. On January 31, 2011, one- quarter of this amount has been earned.

Required:

Prepare the adjusting journal entries required at January 31, 2011.


Related Discussions:- Prepare the adjusting journal entries

What are accrued items explain with example, Q. What are Accrued items expl...

Q. What are Accrued items explain with example? Delayed items consist of two types of adjusting entries asset/expense adjustments and liability/revenue adjustments. For instanc

Explain about pegboard system, Q. Explain about pegboard system? One mo...

Q. Explain about pegboard system? One more innovation in manual systems was the one write or pegboard system. Beside creating one document and aligning other records under it o

Define Accounting, define accounting. Briefly explain its concepts

define accounting. Briefly explain its concepts

Double entry, started in business with cash 16,000

started in business with cash 16,000

Meaning of invoice?, Invoice is a text which haves the under mentioned deta...

Invoice is a text which haves the under mentioned details compulsorily. 1. Invoice Number 2. Name and address of the person 3. Invoice date Name and address of someone

Advantage of a pre-inventory sale, Q. Advantage of a pre-inventory sale? ...

Q. Advantage of a pre-inventory sale? Have you still taken advantage of a pre-inventory sale at your favourite retail store Many stores offer bargain prices to decrease the mer

Explain merchandise in transit, Q. Explain Merchandise in transit? Mer...

Q. Explain Merchandise in transit? Merchandise in transit is merchandise in the hands of a shipment company on the date of a physical inventory. As stated above buyers should

Determine the income statement columns of worksheet, Determine the Income S...

Determine the Income Statement columns of Worksheet Income Statement columns of the worksheet would comprise the amounts from Adjusted Trial Balance columns which are expenses

Explain about the payroll register, Explain about the payroll register ...

Explain about the payroll register This is a summary of gross earnings, deductions and net pay for all employees for a specific payroll period. Register illustrates all amounts

Accounting entity assumption and matching principle, 1. For each of the fol...

1. For each of the following accounting assumptions/principles, explain a business transaction:   (a) Accounting Entity Assumption (b) Going Concern Assumption (c) Matching Prin

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd