3-7 - (Omit the "$" sign in your response.) VIX...

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Page 7 of 14 http://ezto.mhhm.mcgraw-hill.com/hm_accounting.tpx?todo=printview Adjusting entry 9: Advertising Date General Journal Debit Credit Dec. 31 Advertising Expense 500 Advertising Payable 500 Adjusting entry 10: Utilities Date General Journal Debit Credit Dec. 31 Utilities Expense 77 Utilities Payable 77 Worksheet Learning Objective: 03-P1 Learning Objective: 03-A1 Learning Objective: 03-P3 Following are two income statements for Vix Co. for the year ended December 31. The left column is prepared before any adjusting entries are recorded, and the right column includes the effects of adjusting entries. The company records cash receipts and payments related to unearned and prepaid items in balance sheet accounts. Analyze the statements and prepare the ten adjusting entries that likely were recorded. (Note: 30% of the $6,600 adjustment for Fees Earned has been earned but not billed, and the other 70% has been earned by performing services that were paid for in advance.)
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Unformatted text preview: (Omit the "$" sign in your response.) VIX CO. Income Statements For Year Ended December 31 Unadjusted Adjusted Revenues Fees earned $ 24,000 $ 30,600 Commissions earned 36,500 36,500 Total revenues 60,500 67,100 Expenses Depreciation expense–Computers 0 1,650 Depreciation expense–Office furniture 0 1,925 Salaries expense 12,500 15,195 Insurance expense 0 1,430 Rent expense 3,800 4,500 Office supplies expense 0 528 Advertising expense 2,500 3,000 Utilities expense 1,250 1,327 Total expenses 20,050 29,555 Net income $ 40,450 $ 37,545 Adjusting entry 1: Unbilled fees Date General Journal Debit Credit Dec. 31 Accounts Receivable 1,980 Fees Earned 1,980 Adjusting entry 2: Earned fees Date General Journal Debit Credit Dec. 31 Unearned Fees 4,620...
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This note was uploaded on 08/09/2010 for the course ACCT 1 taught by Professor Ludwig during the Spring '10 term at Los Angeles City College.

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