The Data Below Concerns Adjustments to Be Made at the Conner

question 70

Essay

The data below concerns adjustments to be made at the Conner Company. Record the adjusting entries on page 12 of a general journal as of December 31, 2019. On the same page of the general journal, record the reversing entries as of January 1, 2020. Include descriptions.
Adjustment data:
a)On October 1, 2019, the firm paid rent of $6,000 in advance for a 6-month period.
b)A total of $5,000 should be recorded as depreciation of equipment for 2019.
c)On December 31, 2019, the firm owed salaries of $4,000 that will not be paid until January 2020.
d)On December 31, 2019, the firm owed the employer's social security (6.2%)and Medicare (1.45%)taxes on all of the accrued salaries.

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Definitions:

Sale of Goods

A commercial transaction in which a seller transfers ownership of tangible personal property to a buyer for a price.

Electronic Form

Digital or electronic format of documents or data, enabling electronic handling, storage, and transfer.

Enforceable

Pertains to a contract or obligation that is legally binding and can be upheld in a court of law.

Parol

Oral or verbal evidence, not recorded in writing, used to explain the terms of a contract.