In the Journal Provided,prepare Year-End Adjustments for the Following Situations

question 168

Essay

In the journal provided,prepare year-end adjustments for the following situations.Omit explanations.
a. Accrued interest on notes receivable is $560.
b. Of the $7,200 received in advance of earning a service, one-third was still unearned by year end.
c. Two years of rent, totaling $24,000, was paid in advance. By year end, four months' worth had expired.
d. Services totaling $685 had been performed, but not yet billed.
e. Depreciation on trucks totaled $1,700 for the year.
f. Supplies available for use during the year amounted to $3,400. However, by year end, only $700 in supplies remained.
g. Payroll for the five-day work week, to be paid on Friday, is $6,000. Year end falls on a Tuesday.
h. Estimated federal income taxes were $2,100.

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Definitions:

Schedule C

A tax form used by sole proprietors to report income and expenses from a business.

Actual Expenses

Real, documented expenses incurred for a specific purpose, often used for tax deduction calculations.

Local Benefits

Refers to services or advantages provided by local government or community organizations to their residents.

Real Property Taxes

Taxes imposed by local governments on real estate properties based on their assessed value.