Question

Craig Ferguson Company has the following balances in selected accounts on December 31, 2017. Accounts Receivable...

Craig Ferguson Company has the following balances in selected accounts on December 31, 2017.

Accounts Receivable $-0-

Accumulated Depreciation-Equipment 10,000

Interest Payable -0-

Notes Payable 20,000

Prepaid Insurance 2,700

Salaries and Wages Payable -0-

Supplies 3,500 Unearned

Service Revenue 50,000

All the accounts have normal balances. The information below has been gathered at December 31, 2017.

1. Craig Ferguson Company borrowed $20,000 by signing a 12%, one-year note on August 1, 2017.

2. A count of supplies on December 31, 2017, indicates that supplies of $900 are on hand.

3. Depreciation on the equipment for 2017 is $2,000.

4. Craig Ferguson Company paid $2,700 for 12 months of insurance coverage on May 1, 2017.

5. On November 1, 2017, Craig Ferguson collected $50,000 for consulting services to be performed from November 1, 2017, through March 31, 2018.

6. Craig Ferguson performed consulting services for a client in December 2017. The client will be billed $6,300.

7. Craig Ferguson Company pays its employees total salaries of $13,000 every Monday for the preceding 5-day week (Monday through Friday). On Monday, December 29, employees were paid for the week ending December 26. All employees worked the last 3 days of 2017.

Homework Answers

Answer #1

Adjusting entries :

Date account and explanation debit credit
Dec 31 Interest expense (20000*12%*5/12) 1000
Interest payable 1000
(To record interest payable)
Dec 31 Supplies expense (3500-900) 2600
Supplies 2600
(To record supplies adjusted)
Dec 31 Depreciation expense 2000
Accumlated depreciation-equipment 2000
(To record dep)
Dec 31 Insurance expense (2700/12*8) 1800
Prepaid insurance 1800
(To record insurance expense)
Dec 31 Unearned service revenue (50000*2/5) 20000
Service revenue 20000
(To record service revenue)
Dec 31 Account receivable 6300
Service revenue 6300
(To record service revenue)
Dec 31 Salaries and wages expense (13000/5*3) 7800
Salaries and wages payable 7800
(To record salaries and wages expense)
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Devin Wolf Company has the following balances in selected accounts on December 31, 2017. Accounts Receivable...
Devin Wolf Company has the following balances in selected accounts on December 31, 2017. Accounts Receivable $ 0 Accumulated Depreciation—Equipment 0 Equipment 7,000 Interest Payable 0 Notes Payable 10,200 Prepaid Insurance 2,280 Salaries and Wages Payable 0 Supplies 2,200 Unearned Service Revenue 30,000 All the accounts have normal balances. The information below has been gathered at December 31, 2017. 1. Devin Wolf Company borrowed $10,200 by signing a 9%, one-year note on September 1, 2017. 2. A count of supplies...
Hwang Ltd. has the following balances in selected accounts on December 31, 2017. Accounts Receivable NT$...
Hwang Ltd. has the following balances in selected accounts on December 31, 2017. Accounts Receivable NT$ –0– Accumulated Depreciation—Equipment –0– Equipment 210,000 Interest Payable –0– Notes Payable 240,000 Prepaid Insurance 63,100 Salaries and Wages Payable –0– Supplies 73,500 Unearned Service Revenue 900,000 All the accounts have normal balances. The information below has been gathered at December 31, 2017. 1. Hwang borrowed NT$240,000 by signing a 6%, 1-year note on October 1, 2017. 2. A count of supplies on December 31,...
Exercise 3-5 Monty Corp. has the following balances in selected accounts on December 31, 2019. Accounts...
Exercise 3-5 Monty Corp. has the following balances in selected accounts on December 31, 2019. Accounts Receivable $ 0 Accumulated Depreciation—Equipment 0 Equipment 8,000 Interest Payable 0 Notes Payable 9,800 Prepaid Insurance 3,180 Salaries and Wages Payable 0 Supplies 2,100 Unearned Service Revenue 28,000 All the accounts have normal balances. The information below has been gathered at December 31, 2019. 1. Monty Corp. borrowed $9,800 by signing a 12%, one-year note on September 1, 2019. 2. A count of supplies...
Prepare adjusting entries from selected data: Devin Wolf company has the following balances in selected accounts...
Prepare adjusting entries from selected data: Devin Wolf company has the following balances in selected accounts on december 31,2020 Accounts Receivable $–0– Accumulated Depreciation—Equipment –0– Equipment 7,000 Interest Payable –0– Notes Payable 10,000 Prepaid Insurance 2,100 Salaries and Wages Payable –0– Supplies 2,450 Unearned Service Revenue 32,000 All the accounts have normal balances. The information below has been gathered at December 31, 2020. 1. Devin Wolf Company borrowed $10,000 by signing a 9%, one-year note on September 1, 2020. 2....
New Slang Pest Control has the following balances in selected accounts on December 31, 2016. Accounts...
New Slang Pest Control has the following balances in selected accounts on December 31, 2016. Accounts Receivable $0 Accumulated Depreciation – Equipment 0 Equipment 6,650 Interest Payable 0 Notes Payable 20,000 Prepaid Insurance 2,220 Salaries and Wages Payable 0 Supplies 2,940 Unearned Service Revenue 30,000 All of the accounts have normal balances. The information below has been gathered at December 31, 2016. 1. Depreciation on the equipment for 2016 is $1,300. 2. New Slang Pest Control borrowed $20,000 by signing...
Rachel Kumar, DDS, had the following balances in selected accounts on December 31, 2019. Accounts Receivable...
Rachel Kumar, DDS, had the following balances in selected accounts on December 31, 2019. Accounts Receivable $ 0 Prepaid Insurance 2,220 Supplies 2,940 Equipment 6,650 Accumulated Depreciation – Equipment 0 Salaries and Wages Payable 0 Notes Payable 15,000 Interest Payable 0 Unearned Service Revenue 30,000 All of the accounts have normal balances. The information below has been gathered at December 31, 2019. 1.Depreciation on the equipment for 2019 is $1,300. Record the adjusting entry. 2. Rachel Kumar borrowed $15,000 by...
EXERCISES Explain the time period assumption. (LO 1) E3-1 Chloe Davis has prepared the following list...
EXERCISES Explain the time period assumption. (LO 1) E3-1 Chloe Davis has prepared the following list of statements about the time period assumption. Adjusting entries would not be necessary if a company's life were not divided into artificial time periods. The IRS requires companies to file annual tax returns. Accountants divide the economic life of a business into artificial time periods, but each transaction affects only one of these periods. Accounting time periods are generally a month, a quarter, or...
The December 31, 2012, trial balance of a company included the following: Debits Credits Accounts Receivable...
The December 31, 2012, trial balance of a company included the following: Debits Credits Accounts Receivable $176,000 Unearned Service Fees $24,000 Prepaid Rent 64,000 Prepaid Insurance 33,600 Equipment 240,000 Accumulated Depreciation-Equipment 30,000 Salaries Expense 120,000 Additional data: 1.      The equipment has an estimated life of 11 years and expected salvage value of $20,000 at the end of its life. 2.      Delivery services performed but unbilled at year-end amount to $6,400. 3.      Two-thirds of the Unearned Service Fees has been earned...
A review of the ledger of Blossom Company at December 31, 2017, produces these data pertaining...
A review of the ledger of Blossom Company at December 31, 2017, produces these data pertaining to the preparation of annual adjusting entries. 1. Prepaid Insurance $18,202. The company has separate insurance policies on its buildings and its motor vehicles. Policy B4564 on the building was purchased on July 1, 2016, for $10,200. The policy has a term of 3 years. Policy A2958 on the vehicles was purchased on January 1, 2017, for $9,702. This policy has a term of...
A company has the following balances at December 31, 2019: Accounts payable 60,000 Accounts receivable 52,500...
A company has the following balances at December 31, 2019: Accounts payable 60,000 Accounts receivable 52,500 Cash 80,000 Common stock 200,000 Equipment 96,000 Equity investments 76,300 Inventory 57,000 Long-term liabilities 100,000 Patents 32,000 Retained earnings 17,000 Salaries payable 15,000 Unearned revenue 1,500 Additional information: The cash balance includes $20,000 cash restricted for future plant expansion. Allowance for doubtful accounts is $3,800. Accumulated depreciation on equipment is $40,000. The long-term liabilities balance includes $12,000 due in 2020. Format guidance: Enter whole...