The Data Below Concerns Adjustments to Be Made at the Tyson

question 41

Essay

The data below concerns adjustments to be made at the Tyson Company. Record the adjusting entries on page 12 of a general journal as of December 31, 2013. On the same page of the general journal, record the reversing entries as of January 1, 2014. Include descriptions.
Adjustment data:
(a) On October 1, 2013, the firm paid rent of $18,000 in advance for a 6-month period.
(b) A total of $15,000 should be recorded as depreciation of equipment for 2013.
(c) On December 31, 2013, the firm owed salaries of $12,000 that will not be paid until January 2014.
(d) On December 31, 2013, the firm owed the employer's social security (6.2%) and Medicare (1.45%) taxes on all of the accrued salaries.

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Definitions:

Sample Mean

The average value computed from a sample set of data, representative of the population mean.

Hypothesized Population Mean

This is an assumed average of a particular characteristic in a population, used as a standard for hypothesis testing in statistical analysis.

Region of Rejection

The area in the tail(s) of a statistical distribution where, if a test statistic falls, the null hypothesis is rejected in favor of the alternative hypothesis.

T-statistic

A statistic used in hypothesis testing, specifically to determine the significance of the difference between two sample means.