Below Are Four Transactions That Were Completed During 20A by Doby

question 8

Essay

Below are four transactions that were completed during 20A by Doby Company.The annual accounting period ends on December 31.Each transaction will require an adjusting entry at December 31,20A.You are to provide the 20A adjusting entries required for Doby Company.
A.On July 1,20A,Doby Company paid a two-year insurance premium for a policy on its equipment.This transaction was recorded as follows:
July 1,20A:
December 31,20A--Adjusting entry:
B.On December 31,20A a tenant renting some office space from Doby Company had not paid the rent of $500 for December.
December 31,20A--Adjusting entry:
C.On September 1,20A,Doby Company borrowed $3,000 cash and gave a one-year,10 percent,note payable.The total interest of $300 is payable on the due date,August 31,20B.The note was recorded as follows:
September 1,20A:
Cash $3,000
Note payable $3,000
December 31,20A--Adjusting entry:
D.Assume Doby Company publishes a magazine.On October 1,20A,the company collected $440 for subscriptions two years in advance.The $440 collection was recorded as follows:

Understand the requirements and effects of the Affordable Care Act on healthcare insurance coverage.

Identify the regulatory compliance requirements for paid tax preparers under Circular 230.

Distinguish between statutory and judicial primary tax authorities.

Compare the tax liabilities between different filing statuses.

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Definitions:

Operational Plans

Detailed plans formulated at a lower level of the organization to implement strategic objectives through day-to-day operations.

Contingency Plans

Prepared strategies or protocols designed to be implemented in response to unforeseen or possible future events or situations.

Facilities Plans

Detailed designs and layouts that outline the physical setup, resource allocation, and operational needs of a particular space or infrastructure.

Marketing Plans

Strategic documents outlining the actions needed to achieve marketing objectives, such as target markets and positioning.