CALCULATOR PRINTER VERSION RESOURCES BACK NEXT Problem 45A a

CALCULATOR PRINTER VERSION RESOURCES BACK NEXT Problem 4-5A adjusting entries 1. Prepaid Insurance $18,864. The company has separate insurance policies on its A review of the ledger of Pharoah Company at December 31, 2017, produces these data pertaining to the preparation of a 1-5 1-11 4-15 4-20 buildings and its motor vehicles. Policy B4564 on building was purchased on July 1, 2016, for $10,260. The policy has a term of 3 years. Policy A2958 on the vehicles was pu on January 1, 2017, for $10,314 has a term of 18 months. 2. Unearned Rent Revenue $42 4,250. The company began subleasing office space in its new building on November 1. At December 31, the company had the following rental contracts that are paid in full for the entire sults by Study Date Nov. 1 Dec. 1 Term (in months) 10 Number of Leases Monthly Rent $5,350 $8,410 3. Notes Payable $44,800. This ba land, consists of a note for 6 months at an annual interest rate of 7%, dated October 4. Salaries and Wages Payable $0. There are 8 salaried employees. Salaries are paid every Friday for the current week. 5 employees receive a salary of $625 each per week, and 3 employees earn $740 each per week. Assume December 31 s Wednesday. Employees do not work weekends. All employees worked the last 3 days of December Prepare the adjusting entries at December 31, 2017. (If no entry is required, select \"No Entry\" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit 1. 2. 3.

Solution

1 Insurance expense 10296 =(10260/3)+(10314/18*12)        Prepaid insurance 10296 2 Unearned rent revenue 84850 =(5350*4*2)+(8410*5*1)       Rent revenue 84850 3 Interest expense 784 =44800*7%/12*3        Interest payable 784 4 Salaries and wages expense 3207 =(625*5/5*3)+(740*3/5*3)       Salaries and wages payable 3207