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:

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Definitions:

Descriptive Statistics

Descriptive statistics involve summarizing and organizing data so it can be understood and presented in a simpler form, including measures of central tendency and variability.

Statistical Inference

The process of making judgments about the characteristics of a population based on sample data.

Categorical Data

Data that represent characteristics and can be divided into groups or categories that do not involve a numeric value.

Quantitative Data

Numerical data that represent quantities and can be ordered or measured.