1155 go book contents search ebook go 2018 by calculating ac

1155 go book contents search ebook go 2018, by calculating accrual-basis revenues and expenses. P3-3A The information necessary for preparing the 2018 year-end adjusting entries for Gamecock Advertising Agency appears below. Gamecock\'s fiscal year-end is December 31 Record adjusting entrics LO3-3 a. On July 1, 2018, Gamecock receives $6,000 from a customer for advertising services to be given evenly over the next 10 months. Gamecock credits Deferred Revenue b. At the beginning of the year, Gamecock\'s depreciable equipment has a cost of $28,000, a four-year life, and no salvage value. The equipment is depreciated evenly (straight-line depreciation method) over the four years. c. On May 1, 2018, the company pays $4,800 for a two-year fire and liability insurance policy and debits Prepaid Insurance. d. On September 1, 2018, the company borrows $20,000 from a local bank and signs a note. Principal and interest at 12% will be paid on August 31 2019 e. At year-end there is a $2,700 debit balance in the Supplies (asset) account. and Only $1,000 of supplies remains on h Required: Record the necessary adjusting entries on December 31, 2018. No prion adjustments have been made during 2018 P3-4A Crimson Tide Music Academy offers lessons in playing a wide range f musical instruments. The unadjusted trial balance as of December 31, 2018 appears below. December 31 is the company\'s fiscal year-end Recrd adjusting entries LO3-3 Debits S 10,300 9,500 2,000 7,200 90,000 Credits Accounts Cash Accounts Receivable Supplies Prepaid Rent Equipment Accumulated Depreciation Accounts Payable Salaries Payable 12,000 7,700 0

Solution

a Deferred Revenue 3600 =6000/10*6         Service revenue 3600 b Depreciation expense 7000 =28000/4        Accumulated depreciation-Equipment 7000 c Insurance expense 1600 =4800/24*8        Prepaid insurance 1600 d Interest expense 800 =20000*12%/12*4        Interest payable 800 e Supplies expense 1700 =2700-1000        Supplies 1700