Prepare General Journal Entries on December 31 to Record the Following

question 130

Essay

Prepare general journal entries on December 31 to record the following unrelated year-end adjustments.
a. Estimated depreciation on office equipment for the year, $4,000.
b. The Prepaid Insurance account has a $3,680 debit balance before adjustment. An examination of insurance policies shows $950 of insurance expired.
c. The Prepaid Insurance account has a $2,400 debit balance before adjustment. An examination of insurance policies shows $600 of unexpired insurance.
d. The company has three office employees who each earn $100 per day for a five-day workweek that ends on Friday. The employees were paid on Friday, December 26, and have worked full days on Monday, Tuesday, and Wednesday, December 29, 30, and 31.
e. On November 1, the company received 6 months' rent in advance from a tenant whose rent is $700 per month. The $4,200 was credited to the Unearned Rent account.
f. The company collects rent monthly from its tenants. One tenant whose rent is $750 per month has not paid his rent for December.

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Definitions:

Population Mean

The average of all the individuals or items in a population, calculated as the sum divided by the total number in the population.

Degrees Of Freedom

The number of independent values or quantities which can vary in the analysis without violating any constraints.

Margin Of Error

An expression of the amount of random sampling error in a survey's results, which describes a confidence interval’s radius around a survey’s result within which the true population parameter lies.

Population Standard Deviation

A measure of the dispersion or spread of all values within a population, quantifying how much the values differ from the population mean.