Based on the Following Information, Prepare the Adjusting Journal Entries

question 154

Short Answer

Based on the following information, prepare the adjusting journal entries for Bella's Beauty Salon. Bella Beauty Salon's unadjusted trial balance for the current year follows:

Additional information:
a. An insurance policy examination showed $1,240 of expired insurance
b. An inventory count showed $210 of unused shop supplies still available
c. Depreciation expense on shop equipment, $350
d. Depreciation expense on the building, $2,220
e. A beautician is behind on space rental payments and this $200 of accrued revenue was unrecorded at the time the trial balance was prepared.
f. $800 of the Unearned Rent account balance was earned by year-end.
g. The one employee, a receptionist, works a five-day workweek at $50 per day. The employee was paid last week but has worked four days this week for which she has not been paid.
h. Three months' property taxes, totaling $450, have accrued. This additional amount of property taxes expense has not been recorded.
i. One month's interest on the note payable, $600, has accrued but is unrecorded.

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Definitions:

Oval Window

A membrane-covered opening at the base of the stapes bone in the middle ear that transfers sound vibrations to the cochlea.

Basilar Membrane

A membrane in the cochlea of the inner ear that vibrates in response to sound and whose vibrations lead to activity in the auditory pathways of the brain.

Middle Ear

The part of the ear between the eardrum and the oval window that contains three small bones which transmit sound vibrations.

Dichromat

An individual with dichromacy, a form of color blindness where one has difficulty distinguishing certain colors due to the absence or malfunction of one of the three types of cone cells in the eyes.