Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. question 3 freds security has the following transa

Question 3 Freds Security has the following transactions and items requiring December 31, 2017 adjustments....

90.2K

Verified Solution

Question

Accounting

Question 3

Freds Security has the following transactions and items requiring December 31, 2017 adjustments. Prepare journal entries as necessary.

a.) i.) The company purchased a 12-month insurance policy for $2,000 cash on March 1, 2017.

ii.) A December 31 adjustment is required.

b.) i.) The company entered into a contract to provide security work for a client. The client paid Freds security $10,000 on October 1, 2017. The company was required to provide security service for 12 months, from October 1, 2017 November 30, 2018.

ii.) A December 31 adjustment is required (assume the company provided security service as promised up to December 31).

c.) The company pays salaries of $8,000 every week on Sunday, based on a 7-day workweek. Assume salaries are earned at the same rate each day. This year, December 31 falls on a Thursday. Record the necessary adjustment.

d.) i.) The company purchased a car for $15,000 cash on February 1, 2017. The car is expected to have a 10-year useful life and no residual value. The companys accountant wishes to use straight line depreciation.

ii.) A December 31 adjustment is required.

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

Finance
1.2K views

(Real options and capital budgeting​) You have come up with a great idea for a​ Tex-Mex-Thai...

Electrical Engineering
1.2K views

Question 1: Write an AVR program to display text on a 2-line WH2002 LCD display based on...

Mechanical Engineering
1.2K views

The differential equation for the current in an RLC circuit is given by L d2i/dt2 +R di/dt+(1/c)i...

Biology
1.2K views

Which of the following best describes the term "Output" as it relates to machinery?A. the...

Biology
1.2K views

O 10 Explain the consequence of errors in meiosis

Physics
1.2K views

An ice block floats in a liquid whose than water A part of block is...

Basic Math
1.2K views

Jotham needs 5 liters of a 40% alcohol solution. He has a 10% and a...

Algebra
1.2K views

4 Find the sum of the arithmetic series if a 27 a22 90 and n...

Accounting
1.2K views

I need help on part 9 & 10 and 8 ...

Accounting
1.2K views

Manufacturing overhead has an underallocated balance of $ 12 comma 400$12,400 ; raw materials inventory...

Accounting
1.2K views

How to solve

Accounting
1.2K views

A company purchased a van at a cost of $42,000 and expects it can be...