intmod4 (1)correct - MODULE 4 ADJUSTING AND CLOSING ENTRIES...

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MODULE 4 ADJUSTING AND CLOSING ENTRIES - ACCRUALS Demonstration Problem 1 Anderson Architects The transactions for the year 2000 for Anderson Architects have already been recorded. This problem shows how to prepare adjusting entries for December 2000. Dec. 31 A note payable of $6,000 has been outstanding since September 1, 2000. Under the terms of the note, the note plus interest (12%) is to be paid on March 1, 2001. No interest has been recorded on the note. Dec. 31 Wages of $650 for December will be paid in January. Dec. 31 Services were performed for a client for $800. The client has not been billed yet. Dec. 31 Advertising costs of $105 for December will be paid in January. DATE ACCOUNT DEBIT CREDIT 2000 Dec. 31 Interest Expense Interest Payable 240 240 Dec. 31 Wages Expense Wages Payable 650 650 Dec. 31 Accounts Receivable Service Revenue 800 800 Dec. 31 Advertising Expense Accounts Payable 105 105 98
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Practice Problem 1 Comfort Furniture Company The transactions for the year 2000 for Comfort Furniture Co. have been recorded in the accounting system. This assignment requires you to prepare adjusting entries for Comfort Furniture Co. for December 2000. Dec. 31 Wages owed but unpaid at the end of December were $5,000. Dec. 31 The company signed a 12%, six-month note for $6,000 on November 1, 2000. No interest has been recorded for November and December. Dec. 31 Service provided to a customer for $350 has not been recorded. Dec. 31 Advertising cost of $90 for December has not been recorded. DATE ACCOUNT DEBIT CREDIT 2000 Dec. 31 Wages Expense Wages Payable 5,000 5,000 Dec. 31 Interest Expense Interest Payable 120 120 Dec. 31 Accounts Receivable Service Revenue 350 350 Dec. 31 Advertising Expense Accounts Payable 90 90 99
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Practice Assignment 2 Conway Floor Covering Incorporated The transactions for Conway Floor Covering Inc. for the year 2000 have been recorded in the accounting system. This assignment requires you to record the adjusting entries for December 2000. Dec. 31 Performed services for a client for $850. The customer will be billed in January. Dec. 31 $15,000 was borrowed by signing a 10%, 2 year note on September 1, 2000. Record the interest on the note. Dec. 31 Employee wages of $950 for December will be paid in January. Dec. 31 Advertising costs of $95 for December will be paid in January. DATE ACCOUNT DEBIT CREDIT 2000 Dec. 31 Accounts Receivable Service Revenue 850 850 Dec. 31 Interest Expense Interest Payable 500 500 Dec. 31 Wages Expense Wages Payable 950 950 Dec. 31 Advertising Expense Accounts Payable 95 95 100
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Homework Problem 1 Gym on Wheels Gym on Wheels provides gymnastics lessons at various daycare centers. The transactions for the year 2000 have been recorded in the accounting system. This assignment requires you to prepare adjusting entries for December 2000. Dec. 31 The note payable of $8,000 has been outstanding since July 1, 2000. Under the terms of the note, the note plus interest (12%) is to be paid on July 1, 2001. No interest has been recorded on the note.
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  • Fall '13
  • Revenue, 1966, 1971, Generally Accepted Accounting Principles, 1920, 2000

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