HWK__5 - HOMEWORK #5 DUE FEBRUARY 18 6 points LN...

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HOMEWORK #5 DUE FEBRUARY 18 6 points LN Investments Corporation adjusts its accounts only at year-end . Prior to making their year-end adjustments, LN had a Net Income of $5,000. The following information is available as a source for preparing the adjusting entries at December 31, 2010: 1. Paid property taxes on 12/30/2010 for the first six months of 2011 of $5,000. No entry has been recorded at that time 2. The daily payroll for wages is $600. Payroll is paid on Friday. December 31 of this year was on a Tuesday. 3. On February 1, 2010, the company renewed their retainer for legal services from a local law firm paying $2,400 for a full year worth of coverage. The full amount was recorded at the time as prepaid. 4. The building housing LN Investments Corporation had an original purchase price on 5/31/2008 of $350,000. It was estimated to have a salvage value of $50,000 and a life of 25 years. Straight-line depreciation is used. No depreciation has been recorded for the year. 5.
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This note was uploaded on 11/11/2011 for the course ACC 201 taught by Professor Bokmier during the Spring '10 term at Michigan State University.

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HWK__5 - HOMEWORK #5 DUE FEBRUARY 18 6 points LN...

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