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is estimated to be 10% of cost.4.Unearned Rent Revenue of $3,800 was earned prior to August 31.5.Salaries of $375 were unpaid at August 31.6.Rentals of $800 were due from tenants at August 31.7.The mortgage interest rate is 8% per year.
(a) Journalize the adjusting entries on August 31 for the 3-month period June 1–August 31.(Omit explanations.)
(b) Prepare an adjusted trial balance on August 31.
E3-16 (Closing Entries for a Corporation)Presented below are selected account balances for Homer Winslow Co. as of December 31, 2014. Inventory 12/31/14 $60,000 Cost of Goods Sold $225,700Common Stock75,000 Selling Expenses 16,000Retained Earnings 45,000 Administrative Expenses 38,000Dividends 18,000 Income Tax Expense 30,000Sales Returns and Allowances 12,000 Sales Discounts 15,000 Sales Revenue 410,000Instructions:Prepare closing entries for Homer Winslow Co. on December 31, 2014. (Omit explanations.)