In General Journal Form,record Adjusting Entries for the Following Items

question 179

Essay

In general journal form,record adjusting entries for the following items for Cornish Accounting Co.at December 31,2015.
a)On January 3,2015,$5,500 of supplies were purchased and recorded as an asset.A count revealed $500 still on hand at December 31,2015.
b)Services performed during December but not yet billed to customers totalled $2,500.
c)On July 1,2015,a $10,000 car was purchased on account.The car is expected to last 4 years and have no residual value at the end of its useful life.
d)On December 31,2015 utilities owed but not yet paid amounted to $500.
e)On January 10,2015 Cornish Accounting Co.accepted a $5,000 deposit from a client for tax work to be completed during the year.The deposit was recorded as unearned revenue.On December 31,2015 all the tax work for the client is complete.

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Definitions:

Government Transfer Expenditure

Government spending on programs that provide benefits to individuals or families without requiring direct payment or labor in return, such as social security or unemployment benefits.

Social Security Program

A government program designed to provide financial support to individuals during retirement, disability, or other conditions that affect income.

Progressive Income Tax

A taxing mechanism in which the tax rate increases as the taxable amount of income increases, taxing higher incomes at higher rates.

Average Tax Rate

The ratio of the total amount of taxes paid to the total tax base (taxable income or spending), expressed as a percentage.