Prepare Adjusting Entries for the Year Ended December 31,for Each

question 158

Essay

Prepare adjusting entries for the year ended December 31,for each of these separate situations.Assume that prepaid expenses are initially recorded in asset accounts and that fees collected in advance are initially recorded as liabilities.
a.The Prepaid Rent account has a debit balance of $8,000 before adjustment,representing a prepayment for four months' rent made on December 1 of the current year.
b.One-third of the work related to $18,000 of cash received in advance was performed during this period.
c.Unpaid accrued salaries at December 31 amounts to $15,000
d.Work was completed for a client on December 31 in the amount of $21,000,but was not previously billed or recorded.
e.Estimated depreciation on office equipment is $27,000.

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Definitions:

AV Node

The Atrioventricular Node, a part of the cardiac conduction system that delays the transmission of electrical impulses from the atria to the ventricles.

Action Potentials

Quick changes in the electrical charge of a neuron's membrane, allowing the transmission of nerve impulses.

Ventricles Repolarize

The process by which the heart's ventricles return to their resting state after contraction, crucial for heart rhythm.

Pacemaker Potential

The self-generated electrical potential that triggers the spontaneous depolarization of cells in the heart's pacemaker regions, leading to heartbeat regulation.