Prepare the Required End-Of-Period Adjusting Entries for Each Independent Case

question 117

Essay

Prepare the required end-of-period adjusting entries for each independent case listed below.
Case 1
Sleater-Kinney Company began the year with a $3000 balance in the Supplies account. During the year $8500 worth of additional supplies were purchased. A physical count of supplies on hand at the end of the year revealed that $7400 worth of supplies had been used during the year. No adjusting entry has been made until year end.
Case 2
Western Company has a calendar year-end accounting period. On July 1 the company purchased equipment for $30000. It is estimated that the equipment will depreciate $300 each month. No adjusting entry has been made until year end.
Case 3
Ranch Realty is in the business of renting several apartment buildings and prepares monthly financial statements. It has been determined that 3 tenants in $900 per month apartments and one tenant in the $1200 per month apartment had not paid their August rent as of August 31st.

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Definitions:

Marginal Benefit

This refers to the additional satisfaction or utility that a person receives from consuming an additional unit of a good or service.

Consumer Surplus

Rephrased: The economic benefit or satisfaction gained by consumers when they pay a price lower than what they are ready to pay for a product or service.

iTunes Download

The action of obtaining digital media files, including music and applications, from Apple's iTunes Store.

Marginal Cost

The cost incurred by producing one more unit of a good or service.