In the Journal Provided, Prepare Year-End Adjustments for the Following

question 76

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.

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Definitions:

Actual Overhead

The real expenses incurred for overhead in a given period, as opposed to budgeted or estimated costs.

Production Jobs

Positions in manufacturing that involve direct involvement in the creation of products, such as assembly line work or machine operation.

Job-Order Costing

A cost accounting system that assigns costs to specific production batches or jobs, useful for customized or unique products.

Process Costing

An accounting methodology used to allocate costs to units of production in continuous, homogeneous operations, typical in industries like chemicals or food production.