80.2K

Verified Solution

Link Copied!

Create Journal Entries as needed for the following:

ABC Company is completing the accounting process for its first year ended December 31, 2017. The transactions during 2017 have been journalized and posted. The following data are available to determine adjusting journal entries.

a. The unadjusted balance in Supplies was $855 consisting of the beginning balance of $600 and purchases of $255. The total usage tracking sheet shows $681 in usage and the final on-hand inventory total is $172.

b. There were 15 employees earning $120 per day that had 3 days of unpaid wages as of 12/31/2017.

c. ABC Company started renting a portion of its warehouse for $550 per month on 4/15/2017. 10 months were paid up front and the $5500 payment was credited to Deferred Revenue.

d. ABC purchased a new refrigerator unil on 6/15/2017 for $10,000. The annual depreciation for this until is calculated to be $1200 although no entry has been recorded yet.

e. ABC provided catering services to the local college for graduation services in December. The college had not paid the for the catering work completed amounting to $1200. Collection is expected in January 2020.

f. ABC renewed their General Liablity insurace on 5/1/2020 for a 24 month period costing $3600. The unadjusted balance in the was $3000. A journal entry was posted on Sept 30, 2017 expensing the used portion as of that date.

Answer & Explanation Solved by verified expert

See Answer