Will Corporation prepares monthly financial statements. Below are listed some selected accounts and their balances on the September 30 trial balance before any adjustments have been made for the month of September.
Will CORPORATION
Trial Balance (Selected Accounts)
September 30, 2004
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Debit Credit
Computer supplies DR 2,700
Prepaid insurance DR 4,200
Office Equipment DR 16,200
Accumulated Amortization—Office Equipment $ 900
Unearned Rent Revenue 1,200
Note Payable 15,000
(Note: Debit column does not equal credit column because this is a partial listing of selected account balances.)
An analysis of the account balances by the company's accountant provided the following additional information:
1. A physical count of office supplies revealed $600 on hand on September 30.
2. A two-year life insurance policy was purchased on June 1 for $6,000.
3. Office equipment is amortized $4,500 per year.
4. The amount of rent received in advance that remains unearned at September 30 is $800.
5. The company borrowed $12,000 on August 1 and in return signed a one-year 8% note payable. No interest or principal payments are required until the note matures in 2005.
Required
Using the above additional information, prepare the adjusting entries that should be made by Will Corporation on September 30. Include explanations with your journal entries
2007-12-11
23:57:56
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3 answers
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asked by
marko
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Other - Business & Finance