A Review of the Ledger of Weakly Service Co

question 142

Essay

A review of the ledger of Weakly Service Co. at December 31, 2014, produces the following data pertaining to the preparation of annual adjusting entries:
(a) Notes Payable $80,000: This is a 9-month note, dated September 1, 2014, with a 9% interest rate.
(b) Prepaid Rent $648,000. The company rents offices throughout the Midwest. During 2014 it signed 10 leases as shown below: (c) Unearned Service Revenue $171,000. During 2014 the company entered into 13 monthly service contracts with clients. The clients prepaid for the services to be provided over the contract period in an even manner. Instructions:
Prepare the adjusting entries at December 31, 2014. Show all computations.

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Definitions:

Abundant Elements

The most common elements found in the Earth's crust, atmosphere, or oceans.

Universe

The totality of all space, time, matter, and energy, including galaxies, stars, and planetary systems.

Silicate Mineral

Minerals composed of silicate groups, the most abundant class of minerals in the Earth's crust, containing silicon and oxygen.

Continental Crust

The thick, buoyant part of the Earth's crust that forms the continents; it is generally older and more complex than oceanic crust.