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Module 7 - Adjusting Entries Solutions

Module 7 - Adjusting Entries Solutions - ACT 6692 Advanced...

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ACT 6692 Advanced Accounting Problems CPA Review Module 7 Prepare Adjusting Entries Setup The following trial balance was taken from the books of ABC Corporation on December 31, 2008. Account Debit Credit Cash $ 12,000 Accounts Receivable 40,000 Note Receivable 7,000 Allowance for Doubtful Accounts $ 1,800 Merchandise Inventory 44,000 Prepaid Insurance 4,800 Furniture and Equipment 125,000 Accumulated Depreciation--F. & E. 15,000 Accounts Payable 10,800 Common Stock 44,000 Retained Earnings 55,000 Sales 280,000 Cost of Goods Sold 111,000 Salaries Expense 50,000 Rent Expense 12,800 Totals $406,600 $406,600 At year end, the following items have not yet been recorded. a. Insurance expired during the year, $2,000. b. Estimated bad debts, 1% of gross sales. c. Depreciation on furniture and equipment, 10% per year. d. Interest at 6% is receivable on the note for one full year. e. Rent paid in advance at December 31, $5,400 (originally charged to expense). f. Accrued salaries at December 31, $5,800. Instructions - Prepare the necessary adjusting entries.
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ACT 6692 Advanced Accounting Problems Professor Hudack, PhD, CPA, CMA CPA Review Module 7 Prepare Adjusting Entries
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