Several Transactions for Kincaid Co

question 89

Essay

Several transactions for Kincaid Co. are presented below. The company adjusts its books only at year-end.
a. On February 1, Kincaid Co. leased a warehouse to another company for $48,000 for a three-year period. The company credited a revenue account on February 1 when the total amount of $48,000 was received in cash.
b. On September 1, Kincaid Co. paid $6,000 to a local trucking company for certain deliveries spread evenly over a two-year period of time. The company charged an asset account on September 1.
c. On May 1, the company borrowed $10,000 on a 12%, one-year note.
d. On March 10, Kincaid Co. bought $300 of office supplies and debited the office supplies account. At the beginning of the year, office supplies of $50 were on hand and disclosed on the January 1 balance sheet. At the end of the year, there were $64 of office supplies on hand.
Required:
Prepare adjusting entries for December 31.

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Definitions:

Remedies

The means by which a right is enforced or the violation of a right is prevented, redressed, or compensated.

Severe Injury

A physical or psychological harm that significantly impacts an individual's health or capability to function.

Legal Sanctions

Penalties or coercive actions that can be imposed by a legal authority in response to noncompliance with laws or regulations.

Morals

Principles or habits with respect to right or wrong conduct, guiding an individual's behavior in society.