Prepare the Required End-Of-Period Adjusting Entries for Each Independent Case

question 163

Essay

Prepare the required end-of-period adjusting entries for each independent case listed below.
Case 1
Thomas Company, a private company, began the year with a $3,000 balance in the Office Supplies account. During the year, $8,500 worth of additional office supplies were purchased. A physical count of office supplies on hand at the end of the year revealed that $5,100 worth of office supplies were on hand at year end. No adjusting entry has been made until year end.
Case 2
Carson Company has a calendar year-end accounting period. On July 1, the company purchased office equipment for $28,800. It is estimated that the office equipment will have a useful life of six years. No adjusting entry has been made until year end.
Case 3
Chan Realty is in the business of renting several apartment buildings and prepares monthly financial statements. It has been determined that 3 tenants in $600 per month apartments and one tenant in a $1,000 per month apartment had not paid their August rent as of August 31.
1. A one-year insurance policy costing $3,600 was purchased on January 1, 2014. At that time the full amount was debited to prepaid insurance.
2. A physical inventory count on January 31, 2014 revealed $800 in supplies were still remaining.
3. Land and building were purchased on February 1, 2013 at a cost of $160,000. The building has an expected useful life of 20 years. The purchase was financed by paying $70,000 in cash and the balance on a 2-year, 8% note payable. Interest on the note is due at maturity.
4. Unearned service revenue related to a client retainer paid on January 15, 2014. On January 31, 2014, one-quarter of this amount has been earned.
Instructions
Prepare the adjusting journal entries required at January 31, 2014.

Evaluate the effect of death on property ownership under different forms of co-ownership.

Critique the public policy and legal changes impacting restrictive covenants in property law.

Understand the legal framework and implications for property adjacent to watercourses.

Analyze the operation and management of condominium developments, including rights and obligations of unit owners.

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Definitions:

Precognition

The alleged ability or phenomenon of knowing or perceiving events before they happen or occur.

Clairvoyance

Clairvoyance is the purported psychic ability to gain information about an object, person, location, or physical event through extrasensory means, beyond the known human senses.

Perceptual Set

A mental predisposition to perceive one thing and not another, influenced by expectations, culture, and other psychological factors.

Retinal Disparity

The slight difference in the visual images that reach each eye, leading to the perception of depth.