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accounting chap 4 - Updated balances Dec 31 Interest...

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Unearned Revenue Cash Revenue Original entry (8/1/09) Adjusting entry (12/31/09) 4800 4800 2000 2000 Updated balances (12/31/09) 2800 2000 Dec 31 Unearned Revenue. .................................... 2000 Revenue. ............................................................ 2000 To record Earned Revenue for 5 months: 4800/12 x 5 = 2000 2/ Prepaid Insurance Cash Insurance Expense Original entry (3/1/09) 3000 3000 Adjusting entry (12/31/09) 1125 1125 Updated balances (12/31/09) 1875 1125 Dec 31 Insurance Expense. ........................................ 1125 Prepaid Insurance. ........................................... 1125 To record the use of Insurance for 9 months: 3000/24 x 9 = 1125 3/ Wages Payable Wages Expense Adjusting entry (12/31/09) 11000 11000 updated balances (12/31/09) Dec 31 Wages Expense. ............................................ 11000 Wages Payable. ............................................... 11000 To record the obligation for wages in half of a month: 22000/2 = 11000 4/
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Interest Receivable Revenue Original entry (6/1/09) 60 60 Adjusting entry (12/31/09)
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Unformatted text preview: Updated balances (12/31/09) Dec 31 Interest Receivable. ................................................... 60 Revenue. .................................................................. 60 To record the gain of Revenue by Interest in 12 months 1000 x 12 % / 24 x 12 = 60 5/ Unearned Revenue Cash Revenue Original entry (12/20/2009) 2500 2500 Adjusting entry (12/31/09) 1875 1875 Updated balances (12/31/09) 625 Dec 31 Unearned Revenue. ............................................... 1875 Revenue. .................................................................. 1875 To record the Earned Revenue 2500 x ¾ = 1875. 6/ Supply Cash Supply Expense Original entry (9/01/2009) 500 500 Adjusting entry (12/31/09) 125 125 Updated balances (12/31/09) 375 Dec 31 Supply Expense. ..................................................... 500 Supply . ..................................................................... 500 To record the use of supply 500 x ¼ = 125...
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accounting chap 4 - Updated balances Dec 31 Interest...

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