Prepare Adjusting Entries for the Following Items on December 31

question 134

Essay

Prepare adjusting entries for the following items on December 31, the end of the fiscal year for Carson Carpets. The company initially records cash received in advance of performing the service as a liability, and prepaid expenses as current assets.
a)Amortization on equipment, $2,500
b)Services performed but unbilled, $3,500
c)Salaries owed to employees at year end, $2,500
d)Unearned service revenue earned, $5,500
e)Supplies used during the year, $3,200
f)Prepaid rent expired during the year, $7,500

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Definitions:

Comparison Lines

In the context of perception, these are reference lines against which other objects or magnitudes are compared or judged.

Conformity

The tendency of individuals to align their attitudes, beliefs, and behaviors with those of a group or society.

Informational Social Influence

The influence of others that leads to conformity because of a desire to be correct and understand the correct behavior or opinion.

Normative Social Influence

Involves the impact of social norms and the desire to be accepted by others on an individual's behavior.