Prepare Adjusting Entries for the Following Transactions

question 52

Essay

Prepare adjusting entries for the following transactions:
(a)The beginning balance of the supplies account was $245. During the month the company bought additional supplies in the amount of $735. At the end of the month a physical inventory showed $343 of unused supplies.(b)The company has a 12% note payable in the amount of $17,000 due in 6 months. The interest expense of $170 for the month has not been recorded.(c)The company has two employees. The manager is paid on the 15th of every month for work performed during the first half of the month and on the 1st of the following month for the work performed during the second half of the month. His monthly salary is $5,500. The other employee is paid $650 for each 5-day work week (Monday - Friday). The last day of the month fell on Thursday.(d)The unearned fees account shows a balance of $46,000. According to the manager 60% of that amount has been earned.(e)At the end of the month $5,700 of services had been performed but not yet billed.

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Definitions:

Decision-Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

Scientific Management

A management theory developed by Frederick Taylor aiming to improve economic efficiency and labor productivity through systematic study and analysis of workflow.

Mass Manufacturing

The production of large quantities of standardized products, often utilizing assembly line technology to achieve efficiency and cost-effectiveness.

World Economy

The global network of economic activities, including the production, distribution, and consumption of goods and services, across national borders.