ACCT-504-6-Journalize the adjusting entries below at year-end December
Question # 00610081
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Updated on: 10/31/2017 04:51 AM Due on: 10/31/2017
(a) Beginning prepaid insurance, $500. Payments for insurance during the period are $900. Ending prepaid insurance is $600.
(b) Interest revenue of $1,500 has been earned but not yet received.
(c) Accrued Service Revenue of $12,000
(d) The weekly payroll is $20,000. Employees are owed for 4 days of a 5-day work week.
The unadjusted balance of the Supplies account is $1,200. The total cost of supplies remaining is $300.
(f) Equipment was purchased at the beginning of the year for $25,000. The equipment's useful life is 5 years, and the residual value is $5,000. Record the depreciation for this year.
B. Calculate the overall overstatement or understatement of net income if the above adjusting entries were not made. Please share your work.
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Solution: ACCT-504-6-Journalize the adjusting entries below at year-end December