If you could show me the adjusting entries for 2,6,8 &9 thatd be great The follo
ID: 2333728 • Letter: I
Question
If you could show me the adjusting entries for 2,6,8 &9 thatd be great
The following additional information is provided at July 31, 2018 1) Prepaid insurance of $45,000 expires in five months. 2) Depreciation expense for the month was $16,050 3) Unbilled service revenue at 7/31/18 totaled $14,600 4) Gift cards with remaining balances of $2,300 expired on 7/31/18 5) A physical count showed $15,000 of parts and supplies on hand at 7/31/18 6) $7,250 of salaries earned from July 24-31 will be paid in August. 7) The interest rate on the bank loan is 4% 8) Received a July electricity bill of $450 on August 3 9) The investment is a certificate of deposit (CD) with an interest rate of 2%. Interest is added to the investment balance 10) Company purchases long-term disability insurance for its employees. The monthly premium is .25% of salaries expense and is payable quarterly 11) The income tax rate is 21%Explanation / Answer
Solution:
Adjusting Entries
Note : Investment amount is missing in the information provided.
Date Accounts explanation Debit (amount) Credit (amount) (2) Depreciation A/c Dr. $16,050 To Accumulated Depreciation A/c $16,050 (6) Salaries expense A/c Dr. $7,250 To salaries payable A/c $7,250 (8) Electricity Expense Dr. $450 To Electricity Expense payable $450 (9) investment A/c Dr. See note To interest income