End-Of-Period Adjustments - Selected Computations

question 8

Essay

End-of-period adjustments - selected computations
Allied Architects adjusts its books each month and closes its books at the end of the year.The trial balance at January 31,2015,before adjustments is as follows: The following information relates to month-end adjustments:
(a)According to contracts,consulting fees received in advance that were earned in January total $13,500.
(b)On November 1,2015,the company paid in advance for 5 months' advertising in professional journals.
(c)At January 31,supplies on hand amount to $2,250.
(d)The equipment has an original estimated useful life of 4 years.
(e)The corporation is subject to income taxes of 25% of taxable income.(Assume taxable income is the same as "income before taxes.")

---

Definitions:

Peer Conformity

The act of changing one's behavior or beliefs to match those of one's peers, often to fit into a group or gain acceptance.

Peer World

The social environment and community formed by individuals of approximately the same age, which greatly influences behaviors, attitudes, and learning.

Adolescents

Individuals in the transitional stage of human development that occurs between puberty and legal adulthood, typically between the ages of 13 and 19.

Children

Individuals who are in the early stages of their lives, typically characterized by rapid physical and mental development.