Prepare Adjusting Entries for the Following Transactions

question 160

Essay

Prepare adjusting entries for the following transactions:
(a)The beginning balance of the supplies account was $245. During the month the company bought additional supplies in the amount of $735. At the end of the month a physical inventory showed $343 of unused supplies.
(b)The company has a 12% note payable in the amount of $17,000 due in six months. The interest expense of $170 for the month has not been recorded.
(c)The company has two employees. The manager is paid on the fifteenth of every month for work performed during the first half of the month and on the first of the following month for the work performed during the second half of the month. His monthly salary is $5,500. The other employee is paid $650 for each five-day work week
(Monday-Friday). The last day of the month fell on Thursday.
(d)The unearned fees account shows a balance of $46,000. According to the manager 60% of that amount has been earned.
(e)At the end of the month $5,700 of services had been performed but not yet billed.

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Definitions:

Hierarchy of Authority

The arrangement of individuals within a system or organization in a ranked order of authority, often forming a pyramid structure with a single person or group at the top.

Congressional Legislation

Laws and statutes passed by the United States Congress, which consists of the Senate and the House of Representatives.

Constitutional Amendments

Changes or additions made to the U.S. Constitution, requiring a significant consensus for ratification as outlined in the document itself.

Hierarchically Structured

Organized in a way that each level is ranked above or below others, typically referring to systems of organization within corporations or institutions.