HW #1 - a) Prepare the adjusting entry for 12/31/1. b)...

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ACCT 401 Homework #1 Reminder: This will be graded for accuracy. Each adjusting entry will count 1 point. There will be no partial credit. Your work must be easily read so please write clearly. 1. ABC Co. purchased equipment for a cost of $12,000 on 3/31/1. There was a $2,000 salvage and a four year life. Prepare the adjusting entry for the year end of 12/31/1. 2. DEF Co. purchased 1 year of insurance on 1/1/1 for $12,000 and set it up as a prepayment. Prepare the adjusting entry for the year end of 6/30/1. 3. EFG Co. borrowed $50,000 at 6% on 11/1/1 for 6 months.
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Unformatted text preview: a) Prepare the adjusting entry for 12/31/1. b) Prepare the journal entry to record the payment at maturity. 4. Your payroll is paid each Friday. The weekly payroll should be $5,000 each week (for a 5 day work week). a) Prepare the adjusting entry if the year ends on Tuesday, December 31. b) Prepare the entry to record the payroll on Friday, January 3. 5. As an attorney, you ask a client for a $50,000 retainer in advance. At year-end, you have earned 30% of the fee. Prepare the 12/31 adjusting entry....
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This note was uploaded on 03/20/2012 for the course ACCT 401 taught by Professor Winchel during the Spring '10 term at South Carolina.

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HW #1 - a) Prepare the adjusting entry for 12/31/1. b)...

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