Prepare Adjusting Entries for the Following Transactions

question 137

Essay

Prepare adjusting entries for the following transactions. 1. Interest accrued on notes receivable is $270. 2. Property taxes owing but not paid or recorded amount to $700 . 3. Legal service revenues of $3,000 were collected in advance. By year end, $600 was earned. 4. Prepaid insurance had a $400 debit balance prior to adjustment. By year end, 40% was still unexpired. 5. Salaries owing at year end but not yet paid or recorded amounted to $950 .

---

Definitions:

Treasury Stock-Common

Refers to shares that were issued and later reacquired by the issuing company, reducing the amount of outstanding stock on the open market.

Par Value

The stated value of a share of stock or a bond, set at the time of its issuance, and used to determine its trading value.

Par Common Stock

The face value of a share of common stock as specified in the corporate charter.

Purchase Price

The total cost incurred to acquire an asset, including the price of the asset itself along with any additional costs necessary to bring the asset to a usable state.