Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. problem 3-3a (algo) record adjusting entries (lo3-

Problem 3-3A (Algo) Record adjusting entries (LO3-3) The information necessary for preparing the 2024 year-end...

90.2K

Verified Solution

Question

Accounting

image Problem 3-3A (Algo) Record adjusting entries (LO3-3) The information necessary for preparing the 2024 year-end adjusting entries for Aboud Advertising Agency appears below. Aboud's fiscal year-end is December 31 . 1. On July 1,2024 , Aboud received $4,700 from a customer for advertising services to be given evenly over the next 10 months. Aboud credited Deferred Revenue on July 1. 2. At the end of the year, income taxes owed are $5,700. 3. On May 1,2024 , the company paid $3,240 for a two-year fire and liability insurance policy. The company debited Prepaid Insurance on May 1. 4. On September 1,2024 , the company borrowed $23,000 from a local bank and signed a note. Principal and interest at 9% will be paid on August 31, 2025. 5. At year-end there is a $2,050 debit balance in the Supplies (asset) account. Only $870 of supplies remains on hand at the end of the year. Required: Record the necessary adjusting entries on December 31, 2024. No prior adjustments have been made during 2024. (Do not round intermediate calculations. If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students