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exam1page4 - 2(20 Points The following pieces of...

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Unformatted text preview: 2.(20 Points) The following pieces of information come fiom the records of Michelle’s Music Shops, Inc., for the fiscal year ended December 31, 2006. Each piece of information will have a missing adjusting entry. Your job is to determine the missing entry. a. On 1/1/2006, Rent receivable had a balance of $8,200, representing accrued rent at the end of 2005. During 2006, cash received for rent was $24,600. The income statement for 2006 includes rent revenue in the amount of $ lfigQO. Provide the missing adjusting entry, assuming reversing entries are not made. b. Unearned fees at 1/1/2006 were $7,400 and at 12/31/2006 were $8,800. Cash receipts from clients for professional fees during 2006 amounted to $36,000, all of which was credited to Unearned fees revenue. Prepare the missing adjusting entry. 0. Allowance for doubtful accounts on 1/1/2006 was $72,000. The balance in this account on 12/31/2006 after the adjusting entry was prepared was $87,000. During 2006, bad debts written off amounted to $22,000. Provide the missing adjusting entry. (1. Prepaid insurance at 112006 was $18,000. During 2006, insurance payments of $86,000 were made and charged (debited) to Insurance expense. The 2006 income statement includes Insurance expense in the amount of $1 14,000. Prepare the missing adjusting entry assuming reversing entries are not made. 24 66%;) A Cask 1‘1 (400 . Coqk , gm ) QM? ’ch, 10 000 ”/3641. K oi 4,) 94w m; WW“- BD Umawme 99A] (L)8QO Umeami’l [:(cEeJ 57:er W 4», £00 wMQe-J 5‘6“: C) Ailou-a Ga. Dam Ms (A? 5,000 A\ 9/ D h 9-611 15§00 ‘0‘” anp’HExp 227/" A99 ’5’” ...
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