For Each of the Following, Journalize the Necessary Adjusting Entry

question 53

Essay

For each of the following, journalize the necessary adjusting entry:
(a)A business pays weekly salaries of $22,000 on Friday for a five-day week ending on that day. Journalize the necessary adjusting entry at the end of the fiscal period, assuming that the fiscal period ends
(1) on Tuesday or
(2) on Wednesday.
(b)The balance in the prepaid insurance account before adjustment at the end of the year is $18,000. Journalize the adjusting entry required under each of the following alternatives:
(1) the amount of insurance expired during the year is $5,300 or
(2) the amount of unexpired insurance applicable to a future period is $2,700.
(c)On July 1 of the current year, a business pays $54,000 to the city for license taxes for the coming fiscal year. The same business is also required to pay an annual property tax at the end of the year. The estimated amount of the current year's property tax allocated to July is $4,800.
(1) Journalize the two adjusting entries required to bring the accounts affected by the taxes up to date as of July 31.
(2) What is the amount of tax expense for July?
(d)The estimated depreciation on equipment for the year is $32,000.

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Definitions:

Fetus

A developing mammal or human from the completion of embryonic development to birth, characterized by rapid growth and the development of body structures.

Embryo

A stage in prenatal development after fertilization and before becoming a fetus, characterized by rapid cell division and the start of cell differentiation.

Autism Spectrum Disorder

A developmental disorder characterized by difficulties in social interaction, communication, and by restricted or repetitive patterns of thought and behavior.

Reflexively

Acting in an automatic or involuntary manner without conscious thought.