Three Transactions Described Below Were Completed During 2019 by Story

question 131

Essay

Three transactions described below were completed during 2019 by Story Company.
A.On June 1,2019,Story Company paid $12,600 for one year's rent beginning on that date.The rent payment was recorded as follows:
B.On February 1,2019,Story Company purchased office supplies that cost $700 and placed the supplies in a storeroom for use as needed.The purchase was recorded as follows:
C.On December 31,2019,Story Company owed employees $2,000 for wages earned during December.These wages had not been paid or recorded.
Prepare the adjusting entries as of December 31,2019,assuming no adjusting entries have been made during the year.

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Definitions:

Oil Imported

The total volume of crude oil and petroleum products that a country acquires from foreign sources to meet its energy and fuel needs.

Dividends

Payments by a corporation of all or part of its profit to its stockholders (the corporate owners).

Direct Investment

Describes the process of acquiring a controlling interest in foreign assets, such as a company or property, with the aim of managing the investment directly.

Japanese Company

A business entity registered and operating in Japan, often characterized by its management style and hierarchical structure.