Data relating to the balances of various accounts affected byadjusting or closing entries appear below. (The entries that causedthe changes in the balances are not given.) You are asked to supplythe missing journal entries that would logically account for thechanges in the account balances.
1. Interest receivable at1/1/14 was $1,000. During 2014 cash received from debtors forinterest on outstanding notes receivable amounted to $5,000. The2014 income statement showed interest revenue in the amount of$6,400. You are to provide the missing adjusting entry that musthave been made, assuming reversing entries are not made.
2. Unearned rent at 1/1/14was $5,300 and at 12/31/14 was $8,000. The records indicate cashreceipts from rental sources during 2014 amounted to $55,000, allof which was credited to the Unearned Rent Revenue account. You areto prepare the missing adjusting entry.
3. Accumulateddepreciation—equipment at 1/1/14 was $230,000. At 12/31/14 thebalance of the account was $280,000. During 2014, one piece ofequipment was sold. The equipment had an original cost of $40,000and was 3/4 depreciated when sold. You are to prepare the missingadjusting entry.
4. Allowance for doubtfulaccounts on 1/1/14 was $50,000. The balance in the allowanceaccount on 12/31/14 after making the annual adjusting entry was$65,000 and during 2014 bad debts written off amounted to $30,000.You are to provide the missing adjusting entry.
5. Prepaid rent at 1/1/14was $29,000. During 2014 rent payments of $120,000 were made andcharged to "rent expense." The 2014 income statement shows as ageneral expense the item "rent expense" in the amount of $145,000.You are to prepare the missing adjusting entry that must have beenmade, assuming reversing entries are not made.
6. Retained earnings at1/1/14 was $130,000 and at 12/31/14 it was $210,000. During 2014,cash dividends of $50,000 were paid and a stock dividend of $40,000was issued. Both dividends were properly charged to retainedearnings. You are to provide the missing closing entry.
