1 answer

Arnez Company's annual accounting period ends on December 31, 2019. The following information concerns the adjusting...

Question:

Arnez Companys annual accounting period ends on December 31, 2019. The following information concerns the adjusting entries
Arnez Company's annual accounting period ends on December 31, 2019. The following information concerns the adjusting entries to be recorded as of that date. a. The Office Supplies account started the year with a $4.475 balance. During 2019, the company purchased supplies for $18,482, which was added to the Office Supplies account. The inventory of supplies available at December 31, 2019, totaled $3,938. b. An analysis of the company's insurance policies provided the following facts. Policy Months of Coverage Date of Purchase April 1, 2017 April 1, 2018 August 1, 2019 Cost $15,840 14,616 13,440 The total premium for each policy was paid in full (for all months) at the purchase date, and the Prepaid Insurance account was debited for the full cost. (Year-end adjusting entries for Prepaid Insurance were properly recorded in all prior years.) c. The company has 15 employees, who earn a total of $2,950 in salaries each working day. They are paid each Monday for their work in the five-day workweek ending on the previous Friday, Assume that December 31, 2019, is a Tuesday, and all 15 employees worked the first two days of that week. Because New Year's Day is a paid holiday, they will be paid salaries for five full days on Monday, January 6, 2020. d. The company purchased a building on January 1, 2019. It cost $965,000 and is expected to have a $45,000 salvage value at the end of its predicted 30-year life. Annual depreciation is $30,667. e. Since the company is not large enough to occupy the entire building it owns, it rented space to a tenant at $2,200 per month, starting on November 1, 2019. The rent was paid on time on November 1, and the amount received was credited to the Rent Earned account. However, the tenant has not paid the December rent. The company has worked out an agreement with the tenant, who has promised to pay both December and January rent in full on January 15. The tenant has agreed not to fall behind again. f. On November 1, the company rented space to another tenant for $1,993 per month. The tenant paid five months' rent in advance on that date. The payment was recorded with a credit to the Unearned Rent account. Assume no other adjusting entries are made during the year. Required: 1. Use the information to prepare adjusting entries as of December 31, 2019. 2. Prepare journal entries to record the first subsequent cash transaction in 2020 for parts c and e.

Answers

Question 1

Consumption

Dr

19,019

Office supplies

Cr

19,019

(4475+18482-3938)

Policy A (expense for 2019 =

15,840*3/12

$

Insurance

Dr

1,980

Prepaid insurance

Cr

1,980

Policy B (expense for 2019 =

14,616*12/36

$

Insurance

Dr

4,872

Prepaid Insurance

Cr

4,872

Policy C (expense for 2019 =

13,440*5/12

$

Insurance

Dr

5,600

Prepaid Insurance

Cr

5,600

(2,950*15*2days)

$

Salaries

Dr

88,500

Salaries payable

Cr

88,500

Depreciation

Dr

30,667

Building

Cr

30,667

Depreciation = (965,000-45,000)/30

Rent receivable

Dr

2,200

Rental income

Cr

2,200

Rent receivable for December

Unearned rent

Dr

3,986

Rental income

Cr

3,986

2 months rent earned

Question 2

Salaries payable (2 days 2019)

Dr

88,500

Salaries (3 days 2020)

Dr

1,32,750

Cash

Cr

2,21,250

cash

Dr

4,400

Rent receivable (Dec 2019)

Cr

2,200

Rental income (Jan 2020)

Cr

2,200

.

Similar Solved Questions

1 answer
How would you advise the X-Pack creators to proceed? What sources of funding should they pursue?...
How would you advise the X-Pack creators to proceed? What sources of funding should they pursue? Please elaborate in your response....
1 answer
Do you think a single payer system is a viable option for the U.S.? Why or...
Do you think a single payer system is a viable option for the U.S.? Why or why not?...
1 answer
A nerve fibre travelling up structure 1 will carry which sensory modalities? (more than one may...
A nerve fibre travelling up structure 1 will carry which sensory modalities? (more than one may be correct) Select one or more: a. temperature b. pressure c. proprioception d. pain e. vibration Transverse section of spinal cord and associated peripheral structures...
1 answer
Requirement 1 please On March 1, 2018, Gold Examiner receives $166,000 from a local bank and...
Requirement 1 please On March 1, 2018, Gold Examiner receives $166,000 from a local bank and promises to deliver 100 units of certified 1-oz. gold bars on a future date. The contract states that ownership passes to the bank when Gold Examiner delivers the products to Brink's, a third-party ca...
1 answer
Stion 3 4 points Save Answer A production line operates with a mean filing weight of 16 ounces pe...
stion 3 4 points Save Answer A production line operates with a mean filing weight of 16 ounces per container. Overfiling or underfilling presents a serious problem and when detected requires the operator to shut down the product on Ira to read at the fing mechanism. From past data a population stand...
1 answer
The hit Broadway show Hamilton tells the true story of Alexander Hamilton’s role in establishing the...
The hit Broadway show Hamilton tells the true story of Alexander Hamilton’s role in establishing the US monetary system and his conflicts with Thomas Jefferson. Hamilton envisioned a strong federal government and an economy based on industry. He proposed a central bank and an economy based on ...
1 answer
Find the Thevenin equivalent with respect to the terminals a, b of the circuit shown using...
Find the Thevenin equivalent with respect to the terminals a, b of the circuit shown using node analysis. The voltage-dependent current source G1 depends on the voltage across a and b and has a gain of 0.01. Units for R1 R2 L1 C1 are Ohms, H and F, respectively. The linear frequency is 50Hz. 1-1 Der...
1 answer
In a steam power cycle shown in the figure, the pressure of the water vapor exiting...
In a steam power cycle shown in the figure, the pressure of the water vapor exiting from the boiler with 1 kg mass at 1 point is P1 = 4 MPa, while the temperature is T1 = 400 oC, the pressures at the inlet and outlet of the mixing chamber (K.O.) are P2 = P3 = P4 = 1 MPa. The temperature at the inlet...
1 answer
Memo Assignment Chapter 10 Plant Assets Change in Estimate You are the accountant for a small...
Memo Assignment Chapter 10 Plant Assets Change in Estimate You are the accountant for a small business. On January 2, 2014, the business purchased a large piece of equipment for $1,000,000. At that time, you used straight line depreciation, with no salvage value to depreciate the equipment over 15 y...
1 answer
I. (40 points) Predict the major product(s) for each of the following transformations. Be sure to...
I. (40 points) Predict the major product(s) for each of the following transformations. Be sure to indicate stereochemistry and draw enantiomers when appropriate. Clearly show stereochemistry with two lines in the plane and a wedge or dash at the chirality center. No reaction mechanisms are necessary...
1 answer
At what temperature would the average speed of helium atoms equal the following value? Note: The...
At what temperature would the average speed of helium atoms equal the following value? Note: The mass of a helium atom is 6.64 x 10-27 kg. (a) the escape speed from Venus, 1.04 x 104 m/s (b) the escape speed from the Moon, 2.37 x 103m/s...
1 answer
After renting an apartment for five years, Todd and Diane purchased a new home on July...
After renting an apartment for five years, Todd and Diane purchased a new home on July 1, 2008. On their 2008 joint tax return, they claimed a $7,500 first-time home buyer credit. Answer the following questions relating to the credit. a. Assuming they still live in the home, what amount of credit mu...
1 answer
Serial Problem Business Solutions LO P1, P2, P3, P4, P5, P6 After the success of the...
Serial Problem Business Solutions LO P1, P2, P3, P4, P5, P6 After the success of the company’s first two months, Santana Rey continues to operate Business Solutions. The November 30, 2019, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2...
1 answer
Branches of health education
branches of health education...
3 answers
A ball rolls without slipping down the track as shown in the figure below, starting from...
A ball rolls without slipping down the track as shown in the figure below, starting from rest at a height h1 = 24 m as shown. The ball is traveling horizontally when it leaves the bottom of the track, which has a height h2 = 9.5 m. Find where the ball hits the ground; that is, find L....
1 answer
Fifty percent of the people that get mail-order catalogs order something. Find the probability that exactly...
Fifty percent of the people that get mail-order catalogs order something. Find the probability that exactly two of 10 people getting these catalogs will order something....
1 answer
芋0令57%! Fri 12:07 AM a 2. Introdu X -TEXT &C x CHAPTER M inbox (31) ×101...
芋0令57%! Fri 12:07 AM a 2. Introdu X -TEXT &C x CHAPTER M inbox (31) ×101 13 Chap ㄨ С https://newconnect.mheducation.com/flow/connect.html Saved Help Save & Exit Submit CHAPTER ONE HOMEWORK Check my worl Which of the following did not contribute to the financi...