In the Journal Provided,prepare Adjusting Entries for the Following Items

question 85

Essay

In the journal provided,prepare adjusting entries for the following items.Omit explanations.
a. Depreciation on machinery is $940 for the accounting period.
b. Interest incurred on a loan but not paid or recorded is $635.
c. Office supplies of $600 were on hand at the beginning of the period. Purchases of office supplies during the period totaled $200. At the end of the period, $140 in office supplies remained.
d. Commissions amounting to $540 were earned but not recorded or collected by year end.
e. Prepaid Rent had an $8,000 normal balance prior to adjustment. By year end, 50 percent had expired.
f. Federal income taxes for the year are estimated to be $3,250.

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Definitions:

Nontaxable Distribution

A distribution or payout from an investment or account, such as a return of capital, that is not subject to income tax.

Nondeductible Contributions

Payments to certain accounts like IRAs where the investment is made with after-tax dollars, hence not tax-deductible.

IRA

Individual Retirement Account, a savings account with tax advantages that individuals can use to save and invest long-term.

AGI

Adjusted Gross Income represents a calculation derived from your total earnings, used to ascertain the taxable portion of your income.