Question

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 on December 31, 2019, indicates that supplies of $950 are on hand. 3. Depreciation on the equipment for 2019 is $1,600. 4. Monty Corp. paid $3,180 for 12 months of insurance coverage on June 1, 2019. 5. On December 1, 2019, Monty Corp. collected $28,000 for consulting services to be performed from December 1, 2019, through March 31, 2020. 6. Monty Corp. performed consulting services for a client in December 2019. The client will be billed $4,000. 7. Monty Corp. pays its employees total salaries of $7,000 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 2019. Prepare adjusting entries for the seven items described above.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Date Account title Debit credit
December 31,2019
1 Interest expense 392
Interest payable 392
[Being interest accrued for 4 months (1Sept- 31Dec) :9800*.12*4/12=392]
2 Supplies expense 1150
Supplies 1150
[Being supplies used :2100-950 =1150]
3 Depreciation expense 1600
Accumulated depreciation-equipment 1600
4 Insurance expense 1855
Prepaid insurance 1855
[Being insurance expired for 7 months (1June-31dec) = 3180*7/12=1855]
5 Unearned service revenue 7000
service revenue 7000
[Being service revenue earned for a month (1Dec-31Dec) out of 4months period (Dec-mar):28000*1/4=7000]
6 Accounts receivable 4000
service revenue 4000
7 Salaries and wages expense 4200
Salaries and wages payable 4200
Being salaries accrued for 3 days out of 5days week period : 7000*3/5=4200]
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
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 $20,000 by signing a 12%, one-year note on August 1, 2017. 2. A count of supplies on December 31,...
Hwang Ltd. has the following balances in selected accounts on December 31, 2017. Accounts Receivable NT$...
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,...
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...
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...
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...
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....
Following are selected balance sheet accounts of Monty Bros. Corp. at December 31, 2020 and 2019,...
Following are selected balance sheet accounts of Monty Bros. Corp. at December 31, 2020 and 2019, and the increases or decreases in each account from 2019 to 2020. Also presented is selected income statement information for the year ended December 31, 2020, and additional information. Selected balance sheet accounts Assets 2020 2019 Increase (Decrease) Accounts receivable $34,400 $23,900 $10,500 Property, plant, and equipment 279,500 247,600 31,900 Accumulated depreciation—plant assets (179,800 ) (168,500 ) (11,300 ) Liabilities and stockholders’ equity 2020...
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...
Exercise 3-8 Marigold Corp. opened a dental practice on January 1, 2019. During the first month...
Exercise 3-8 Marigold Corp. opened a dental practice on January 1, 2019. During the first month of operations, the following transactions occurred. 1. Performed services for patients who had dental plan insurance. On January 31, $840 of such services were performed but not yet recorded. 2. Utility expenses incurred but not paid before January 31 totaled $600. 3. Purchased dental equipment on January 1 for $87,000, paying $30,000 in cash and signing a $57,000, 3-year note payable. The equipment depreciates...
The following accounts balances are provided for Chen Pty Ltd at 31 December 2019. Revenues and...
The following accounts balances are provided for Chen Pty Ltd at 31 December 2019. Revenues and expense accounts cover the financial year ending on that date. Accounts payable 14,000 Prepaid insurance 2,500 Accounts receivable 18,000 Property, plant and equipment 150,000 Accumulated depreciation 30,000 Retained earnings 78,000 Cash 6,000 Sales revenues 122,000 Cost of sales 35,000 Selling and admin expenses 65,000 Interest expense 4,000 Share capital 50,000 Interest payable 500 Supplies 3,000 Inventory 34,000 Unearned revenue 2,000 Loan payable—long term 40,000...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT