Chapter 3 Adjusting Journal Entries Examples3

Chapter 3 Adjusting Journal Entries Examples3 - interest...

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A 1. On April 1 st , 2004 we purchase a two year insurance policy for $2400. 2. On October 31 st , 2005 we receive $3600 for consulting services that we will perform over the next six months. 3. On July 31 st , 2005 we borrow $20,000 @ 8% for two years w/ interest and principal due at maturity. 4. We pay our employees every other Friday and the last payday was December 27 th . We have a December 31 st year end and payroll is $30,000 each time we pay. Assume a 5 day work week. 5. On June 1 st , 2003 we lend $50,000 @ 10% for 1 year w/ principal and
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Unformatted text preview: interest due at maturity. 6. We begin the year with $3,000 of supplies and purchase $10,000 more during the year. At year end we count and find that we have $1,500 left. Prepare the necessary adjusting entry. 7. Prepare the closing entries: Sales $10,000 Rent Expense $ 500 Salaries Expense $ 1,000 Tax Expense $ 900 Dividends $ 250 a. To close net income b. To close dividends Adjusting Journal Entries Example...
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This note was uploaded on 02/20/2012 for the course ACCT 225 taught by Professor Canace during the Fall '08 term at South Carolina.

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