The Following Unadjusted Account Balance Was Taken from the Accounting

question 134

Essay

The following unadjusted account balance was taken from the accounting records at December 31, 2019:

A)Prepare any adjusting entries necessary at December 31, 2019, for each of the transactions that follow:
1.During the year, the company sold 12-month subscriptions for its flagship magazine. Half of the subscriptions began October 1, 2019, while the other half began December 1, 2019.
2.The company estimates its income taxes to be 40 percent of its estimated income of $500,000.
B)Prepare the current liabilities section of the balance sheet by listing any current liabilities and the related amounts as a result of the adjustments in Part A.

• A)Prepare any adjusting entries necessary at December 31, 2019, for each of the transactions that follow: 1.During the year, the company sold 12-month subscriptions for its flagship magazine. Half of the subscriptions began October 1, 2019, while the other half began December 1, 2019. 2.The company estimates its income taxes to be 40 percent of its estimated income of $500,000.
• B)Prepare the current liabilities section of the balance sheet by listing any current liabilities and the related amounts as a result of the adjustments in Part A.

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Definitions:

Probability

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Rules of Thumb

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Suggests employers pay a higher wage than the market equilibrium to increase worker productivity and loyalty.

Worker Productivity

A measure of output per labor hour.