90.2K

Verified Solution

Link Copied!

Please answer there is no other information.

Journalize the following adjustments. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem. Round answers to 0 decimal places, e.g. 1,527.) 1. Services performed for customers through February 27, 2025, but unbilled and uncollected were $4,500. 2. Received notice that a customer who was billed $240 for services performed February 10 has filed for bankruptcy. Kingbird Cleaning Services does not expect to collect any portion of this outstanding receivable. 3. Kingbird Cleaning Services uses the allowance method to estimate bad debts. Kingbird Cleaning Services estimates that 3% of its month-end receivables will not be collected. 4. Record 1 month of depreciation for the floor equipment. Use the straight-line method, an estimated life of 4 years, and $500 salvage value. 5. Record 1 month of insurance expense. 6. An inventory count shows $480 of supplies on hand at February 28. 7. One week of services were performed for the customer who paid in advance on February 17. 8. Accrue for wages owed through February 28, 2025. 9. Accrue for interest expense for 1 month. 10. Karen estimates a 20% income tax rate. (Hint: Prepare an income statement up to "income before taxes" to help with the income tax calculation.) No. Account Titles and Explanation 1. Accounts Receivable Service Revenue 2. Allowance for Doubtful Accounts Accounts Receivable 3. Bad Debt Expense Allowance for Doubtful Accounts 4. Depreciation Expense Accumulated Depreciation-Equipment 5. Insurance Expense Prepaid Insurance 6. Supplies Expense Supplies 7. Unearned Service Revenue Debit Credit 4,500 4,500 240 240 573 240 573 110 \begin{tabular}{|r|} \hline \\ \hline \\ 110 \\ \hline \end{tabular} 725 725 700 700 7. 162 Service Revenue 162 8. Salaries and Wages Expense 2,320 Salaries and Wages Payable 2,320 9. Interest Expense 48 Interest Payable 48 10. Income Tax Expense 970 Income Taxes Payable 970 Post adjusting entries to the T-accounts. (Post entries in the order of journal entries presented above.) Supplies \begin{tabular}{|c|c|c|} \hline 2/3 & 1,180 & v \\ \hlinev & & v \\ \hline \end{tabular} Equipment \begin{tabular}{ll|l|ll} 2/1 & 10,820 & 2/5 & & 5,040 \\ \hlinev & & & & \\ \hline & & & \end{tabular} Accumulated Depreciation - Equipment \begin{tabular}{|c|c|} \hlinev & v \\ \hlinev & v \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{ Accounts Payable } \\ \hline 2/18 & 360 & 2/3 & 1,180 \\ \hlinev & & v & \\ \hline \end{tabular} Notes Payable \begin{tabular}{|c|c|c|} \hlinev & 2/1 & 9,600 \\ \hlinev & v & \\ \hline \end{tabular} Salaries and Wages Payable Interest Payable Treasury Stock \begin{tabular}{ll|ll} \hline 2/20 & 1,080 & & \\ \hline & & & \\ \hline & & & \end{tabular} Service Revenue \begin{tabular}{|c|c|c|} \hline & 2/16 & 4,680 \\ \hline & 2/23 & 5,160 \\ \hline & v & \\ \hline & v & \\ \hline \end{tabular} Bad Debt Expense Supplies Expense Interest Expense Loss on Disposal of Plant Assets \begin{tabular}{ll|l} \hline 2/5 & 300 & \end{tabular} Income Tax Expense Journalize the following adjustments. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem. Round answers to 0 decimal places, e.g. 1,527.) 1. Services performed for customers through February 27, 2025, but unbilled and uncollected were $4,500. 2. Received notice that a customer who was billed $240 for services performed February 10 has filed for bankruptcy. Kingbird Cleaning Services does not expect to collect any portion of this outstanding receivable. 3. Kingbird Cleaning Services uses the allowance method to estimate bad debts. Kingbird Cleaning Services estimates that 3% of its month-end receivables will not be collected. 4. Record 1 month of depreciation for the floor equipment. Use the straight-line method, an estimated life of 4 years, and $500 salvage value. 5. Record 1 month of insurance expense. 6. An inventory count shows $480 of supplies on hand at February 28. 7. One week of services were performed for the customer who paid in advance on February 17. 8. Accrue for wages owed through February 28, 2025. 9. Accrue for interest expense for 1 month. 10. Karen estimates a 20% income tax rate. (Hint: Prepare an income statement up to "income before taxes" to help with the income tax calculation.) No. Account Titles and Explanation 1. Accounts Receivable Service Revenue 2. Allowance for Doubtful Accounts Accounts Receivable 3. Bad Debt Expense Allowance for Doubtful Accounts 4. Depreciation Expense Accumulated Depreciation-Equipment 5. Insurance Expense Prepaid Insurance 6. Supplies Expense Supplies 7. Unearned Service Revenue Debit Credit 4,500 4,500 240 240 573 240 573 110 \begin{tabular}{|r|} \hline \\ \hline \\ 110 \\ \hline \end{tabular} 725 725 700 700 7. 162 Service Revenue 162 8. Salaries and Wages Expense 2,320 Salaries and Wages Payable 2,320 9. Interest Expense 48 Interest Payable 48 10. Income Tax Expense 970 Income Taxes Payable 970 Post adjusting entries to the T-accounts. (Post entries in the order of journal entries presented above.) Supplies \begin{tabular}{|c|c|c|} \hline 2/3 & 1,180 & v \\ \hlinev & & v \\ \hline \end{tabular} Equipment \begin{tabular}{ll|l|ll} 2/1 & 10,820 & 2/5 & & 5,040 \\ \hlinev & & & & \\ \hline & & & \end{tabular} Accumulated Depreciation - Equipment \begin{tabular}{|c|c|} \hlinev & v \\ \hlinev & v \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{ Accounts Payable } \\ \hline 2/18 & 360 & 2/3 & 1,180 \\ \hlinev & & v & \\ \hline \end{tabular} Notes Payable \begin{tabular}{|c|c|c|} \hlinev & 2/1 & 9,600 \\ \hlinev & v & \\ \hline \end{tabular} Salaries and Wages Payable Interest Payable Treasury Stock \begin{tabular}{ll|ll} \hline 2/20 & 1,080 & & \\ \hline & & & \\ \hline & & & \end{tabular} Service Revenue \begin{tabular}{|c|c|c|} \hline & 2/16 & 4,680 \\ \hline & 2/23 & 5,160 \\ \hline & v & \\ \hline & v & \\ \hline \end{tabular} Bad Debt Expense Supplies Expense Interest Expense Loss on Disposal of Plant Assets \begin{tabular}{ll|l} \hline 2/5 & 300 & \end{tabular} Income Tax Expense

Answer & Explanation Solved by verified expert

See Answer