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

question 58

Essay

Prepare the required end-of-period adjusting entries for each independent case listed below.
Case 1
The Thoma Company began the year with a $3,000 balance in the Supplies account. During the year, $8,500 of additional supplies were purchased. A physical count of supplies on hand at the end of the year revealed that $8,300 worth of supplies had been used during the year. No adjusting entry has been made until year end.
Case 2
The Leno Company has a calendar year-end accounting period. On July 1, the company purchased office equipment for $30,000. It is estimated that the office equipment will depreciate $200 each month. No adjusting entry has been made until year end.
Case 3
Yeats Realty is in the business of renting several apartment buildings and prepares monthly financial statements. It has been determined that 2 tenants in $900 per month apartments and one tenant in the $1,000 per month apartment had not paid their December rent as of December 31^st.

Know how to prepare a statement of owner's equity.

Gain knowledge on how to identify accounts that need to be closed at the fiscal year-end.

Understand the sequence of steps in the accounting cycle from transaction analysis to preparation of financial statements.

Learn the purpose and creation of the end-of-period spreadsheet (work sheet) and its components.

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Definitions:

Competency-Based Compensation

A pay system where employees are compensated based on their skills, knowledge, and performance, rather than job title or seniority.

Specific Jobs

Employment positions defined by particular tasks, responsibilities, and requirements unique to the role.

Employment Requirements

The necessary qualifications, skills, and criteria that a candidate must meet for a job position.

Province

A territorial unit that is considered a secondary level of subdivision within a country, often with its own local government.