1 answer

2. Compute the following adjustme pute the following adjustments and record in the attached General Journal:...

Question:

2. Compute the following adjustme pute the following adjustments and record in the attached General Journal: b. a. ROBO Compa
2. Compute the following adjustme pute the following adjustments and record in the attached General Journal: b. a. ROBO Company ROBO Company pays its employees every Friday. On Friday, January 4, 2013, the Company paid $3,500 for the 5 days beginning the previous December 31. Prepare the adjusting entry on December 31. (Hint: Calculate the payroll for December 31, 2012.) The unearned revenue account shows a balance of $46,000. According to the manager, 60% of that amount has been earned. C. At the end of the month, $5,700 of services have been performed but not yet billed. d. The balance for Prepaid Insurance is $6,600 prior to the year-end adjustment, the unexpired balance is $2,400. e. The balance for Supplies is $1,200 prior to the year-end adjustment, the year-end inventory balance is $400. 3. Adjustment for depreciation. The estimated amount of depreciation on equipment for the current year is $10,650. Journalize the adjusting entry to record the depreciation. 4. The following accounts were taken from the Adjusted Trial Balance columns of the end-of- period spreadsheet for April 30, for Finnegan Co.: Accumulated Depreciation Fees Earned Depreciation Expense Rent Expense Prepaid Insurance Supplies Supplies Expense $32,000 78,000 7,250 34,000 6,000 400 1,800 Prepare an income statement.

Answers

Solution:

Requirement 2:

Event Account Titles and Explanation Debit Credit
a Wages Expense (3,500 /5 days) $                700
Wages Payable $             700
(Being wages payable recorded)
b Unearned Revenue (46000*60%) $          27,600
Service/Sale Revenue $       27,600
(Being revenue earned)
c Accounts Receivables $            5,700
Service/Sale Revenue $         5,700
(Being revenue earned)
d Insurance Expense (6600-2400) $            4,200
Prepaid Insurance $         4,200
(Being insurance expense recorded)
e Supplies Expense(1200-400) $                800
Supplies $             800
(Being supplies expense)

Requirement 3:

Event Account Titles and Explanation Debit Credit
a Depreciation Expense $          10,650
Accumulated Depreciation- Equipment $       10,650
(Being depreciation expense)

Requirement 4:

Finnegan Co.
Income statement
For period ended April 30.
Revenue
Fee Earned $      78,000
Total Revenue (A) $      78,000
Operating Expenses / Expenses
Depreciation Expense $             7,250
Rent Expense $           34,000
Supplies Expense $             1,800
Total Operating Expense (B) $      43,050
Net Income (A-B) $      34,950

Notes:

1) Under Requirement 4, Income statement does not includes accumulated depreciation, supplies and prepaid insurance because there are balance sheet items.

.

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