yettionajetti
28.02.2020 •
Business
Dittman's Variety Store is completing the accounting process for the current year just ended, December 31. The transactions during year have been journalized and posted. The following data with respect to adjusting entries are available:
Wages earned by employees during December, unpaid and unrecorded at December 31, amounted to $2,700. The last payroll was December 28; the next payroll will be January 6.
Office supplies on hand at January 1 of the current year totaled totaled $450. Office supplies purchased and debited to Office Supplies during the year amounted to $500. The year-end count showed $275 of supplies on hand.
One-fourth of the basement space is rented to Heald’s Specialty Shop for $560 per month, payable monthly. At the end of the current year, the rent for November and December had not been collected or recorded. Collection is expected in January of the next year.
The store used delivery equipment all year that cost $60,500; $12,100 was the estimated annual depreciation.
On July 1 of the current year, a two-year insurance premium amounting to $2,400 was paid in cash and debited in full to Prepaid Insurance. Coverage began on July 1 of the current year.
The remaining basement of the store is rented for $1,600 per month to another merchant, M. Carlos, Inc. Carlos sells compatible, but not competitive, merchandise. On November 1 of the current year, the store collected six months’ rent in the amount of $9,600 in advance from Carlos; it was credited in full to Unearned Rent Revenue when collected.
Dittman’s Variety Store operates a repair shop to meet its own needs. The shop also does repairs for M. Carlos. At the end of the current year, Carlos had not paid $800 for completed repairs. This amount has not yet been recorded as Repair Shop Revenue. Collection is expected during January of next year.
Required:
For each of the transactions above, indicate the amount and direction of effects of the adjusting entry on the elements of the balance sheet and income statement. Using the table below, indicate + for increase and - for decrease.
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Ответ:
wages expense 2.700 debit (+Exp)
Decrease to net income
Decrease to equity
Wages payable 2,700 credit (+liabilities)
Increase to liabilities
supplpies expense 675 debit (+Exp)
Decrease to net income
Decrease to equity
Supplies 675 credit (-Assets)
Decrease to Assets
rent receivables (+Assets) 1,120 debit
Increase to Assets
rent revenue (+Revenues) 1,120 credit
Increase to Income
Increase to Equity
depreciation expense 12,100 debit (+Exp)
Decrease to net income
Decrease to equity
Acc-dep equipment 12,100 credit (-Assets)
Decrease to Assets (it is a contra-assets account)
insurance expense 600 debit (+Exp)
Decrease to net income
Decrease to equity
prepaid insurance 600 credit (-Assets)
Decrease to Assets
unearned revenue (-Liabilities) 3,200 debit
Decrease to liabilities
rent revenue (+Revenues) 3,200 credit
Increase to Income
Increase to Equity
accouns receivables (+Assets) 800 debit
Increase to Assets
repairs revenue (+Revenues) 800 credit
Increase to Income
Increase to Equity
Explanation:
Calculations:
Supplies
beginning supplies 450
+ purchase 500
-ending suplies 275
consumed 675
Rent
560 rent per monht x 2 months = 1,120
Insuarance
2,400 for 2 years
threfore 100 per month insurance expense
6 month July through Dec equal 600
Carlos Inc rent:
9,600 / 6 mont x 2 month (Nov adn Dec) = 3,200
Ответ:
angle v is the smallest
Step-by-step explanation: