Financial Statements and Closing Procedures CHAPTER 13 463 A

Financial Statements and Closing Procedures CHAPTER 13 463 Analyze: Assuming that the firm did not record a revensing entry for salaries payable, what entryis required when salaries of $6,000 are paid on January 3 Journalizing adjusting and reversing entries. The data below concerns adjustments to be made at Coffee Bean Importers. INSTRUCTIONS L. Record the adjusting entrics in the general journal as of December 31, 2019. Use 25 as the 4 Problem 13.5A Objectives 13-4, 13-7 first journal page number. Include descriptions 2 Record reversing entries in the general journal as of January 1,2020. Include deseriptions. ADJUSTMENTS a. On November 1, 2019, the firm signed a lease for a warehouse and paid rent of $21.000 in b. On Dacember 31, 2019, an inventory of supplies showed that items costing $1,940 were on e. A depreciation schedule for the firm\'s equipment shows that a total of $10,750 should bo d. On December 31.2019, the firm owed salaries of $6,100 that will not be paid until January e. On December 31, 2019, the firm owed the employer\'s social security (6.2 percent) and f. On October 1,2019, the firm received a advance for a six-month period. hand. The balance of the Supplies account was $11,880 chargod off as depreciation in 2019 2020. Medicare (1.45 percent) taxes on all accrued salaries with an overdue balance. 8 percent note for $6,500 from a customer Analyze: After the adjusting entries have been posted, what is the balance of the Prepaid Rent account on January 1.20207

Solution

The above entry is done based on the accrual entry posted in below adjustment entry.

Please note that only accrual entries are reversed.

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Transaction	Account Description	Debit	Credit
	Salary Payable	$    6,100
	Cash		6000
	Salary Expesnes		100
	(Being Salary Paid and Excess Accrual Reversed)