Based on the Unadjusted Trial Balance for Highlight Styling and the Adjusting

question 106

Essay

Based on the unadjusted trial balance for Highlight Styling and the adjusting information given below,prepare the adjusting journal entries for Highlight Styling.
Highlight Stylings' unadjusted trial balance for the current year follows: Additional information:
a.An insurance policy examination showed $1,040 of expired insurance.
b.An inventory count showed $210 of unused shop supplies still available.
c.Depreciation expense on shop equipment,$350.
d.Depreciation expense on the building,$2,020.
e.A beautician is behind on space rental payments,and this $200 of accrued revenues was unrecorded at the time the trial balance was prepared.
f.$800 of the Unearned Rent account balance was still unearned by year-end.
g.The one employee,a receptionist,works a five-day workweek at $50 per day.The employee was paid last week but has worked four days this week for which she has not been paid.
h.Three months' property taxes,totaling $450,have accrued.This additional amount of property taxes expense has not been recorded.
i.One month's interest on the note payable,$600,has accrued but is unrecorded.

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Definitions:

Break-even

The point at which total cost and total revenue are equal, resulting in no net loss or gain.

AVC Curves

Average Variable Cost curves, which illustrate the variable costs per unit of output produced, typically downward sloping, reflecting economies of scale.

ATC Curves

Graphs that represent the average total cost of production at different levels of output in economics.

Competitive Industry

An industry characterized by multiple firms competing with each other by offering similar products or services, aiming to attract consumers and gain market share.