60.1K

Verified Solution

Link Copied!

need help for part 2 entries and part 3

Problem 12.2A Recording adjustments for accrued and prepaid expense items and unearned income. LO 12-2,12-3 On July 1, 2019, Tim Stein established his own accounting practice. Selected transactions for the first few days of July follow. DATE TRANSACTIONS July 1 signed a lease for an office and issued Check 101 for $14,400 to pay the rent 1 Borrowed money from Second National Bank by ssuing a four-month, 6 percent 1 Signed an agreement with Carter Corp. to provide accounting and tax services 1 Purchased office equipment for $2e,400 from office Outfitters; issued a two- in advance for six months. note for $33,600; received $32,928 because the bank deducted the interest in advance for one year at $6,880 per month; received the entire fee of $81,600 in advance month, 9 percent note in payment. The equipment is estinated to have a useful life of four years and a $2,160 salvage value. The equipment will be depreciated using the straight-line method 1 Purchased a one-year insurance policy and issued Check 102 for $1,716 to pay the entire premium 3 Purchased office furniture for $23,280 from Furniture Warehouse; issued Check 183 for $13,400 and agreed to pay the balence in 66 days. The equipment has an estimated useful life of six years anda $1,600 salvage value. The office furniture will be depreciated using the straight-line nethod. 5 Purchased office supplies for $1,970 with Check 104. Assume $880 of supplies are on hand July 31, 2019. Required: 1 Record the transactions in the general journal. Assume that the firm initially records prepaid expenses as assets and unearned income as a liability for the year 2019. 2 Record the adjusting journal entries that must be made on July 31. 2019 Analyze: What balance should be reflected in Unearned Accounting Fees at July 31, 2019? Complete this question by entering your answers in the tabs below 4 What balance should be reflected in Unearned Accounting Fees at July 31, 2019? Complete this question by entering your answers in the tabs below. Required 1 Required 2Analyze Record the adjusting journal entries that must be made on July 31, 2019. Book View transaction list X: Print Import a new list 1 Record the adjustment for rent. 2 Record the adjustment for interest paid in advance. 3 Record the adjustment for accounting fees earned. 4 Record the adjustment for interest on the note payable. 5 Record the adjustment for depreciation on the erences Credit equipment. Record the adjustment for insurance expired. Record the adjustment for depreciation on the furniture. 6 7 Note:- journal entry has been entered View general journal Record entry Clear entry Required 1 Required 2 Analyze Record the transactions in the general journal. Assume that the firm initially records prepaid expenses as assets and unearned a liability for the year 2019 View journal entry worksheet View transaction list Credit Debit General Journal Date No 14.400 Jul 01, 2019 Prepaid rent Cash 14,400 32,928 672 /2 Jul 01,2019 Cash Prepaid interest Notes payable 33,600 81,600 3 Jul 01, 2019 Cash 81,600 Unearned subscription revenue 20,400 4 Jul 01, 2019 Office equipment Notes payable 1,716 5 Jul 01, 2019 Prepaid insurance 1,716 Cash 23,200 /6 Jul 03, 2019 Office funiture 3,400 9,800 Cash Notes payable 7 Jul 05, 2019 Office equipment 1,970 1,970 Cash Required 2> Required: 1. Record the transactions in the general journal. Assume that the firm initially records prepaid ex income as a liability for the year 2019 2 Record the adjusting journal entries that must be made on July 31, 2019. Analyze: What balance should be reflected in Unearned Accounting Fees at July 31, 2019? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Analyze What balance should be reflected in Unearned Accounting Fees at July 31, 2019? Unearned accounting fees, July 31, 2019 K Required 2

Answer & Explanation Solved by verified expert

See Answer