ineedhelpbadly
Sep 24, 2010, 12:50 PM
This is the prob:
Prepare the adjusting entries required by the ff information made available to you on December 31,2009, the end of the accounting period:
a: On Dec 31, two notes are on hand:
1,500 for 60 days dated December 16,2009 at 14% was received from a customer
1,800 90 days issued to BPI on Dec 1,2009 discounted at 18%(asset method)
b. The unexpired Insurance account balance of 23,000 represents premium paid on a two-year insurance policy taken on Dec 1 2008. The expired portion for the year 2008 has already been adjusted.
c. The business has Accounts receivable of 14,500 as at the end of 2009, it is estimated that only 90% of this is collectible. Allowance for doubtful accounts has an unadjusted balance of 750.
d. a six month advertising contract was entered into by the business which required an advance payment of 2400 on Nov 2 2009 and was debited to advertising expense.
e. rent income was credited for 18,000 representing three months rent received from a lessee on Oct 15 2009.
Prepare the adjusting entries required by the ff information made available to you on December 31,2009, the end of the accounting period:
a: On Dec 31, two notes are on hand:
1,500 for 60 days dated December 16,2009 at 14% was received from a customer
1,800 90 days issued to BPI on Dec 1,2009 discounted at 18%(asset method)
b. The unexpired Insurance account balance of 23,000 represents premium paid on a two-year insurance policy taken on Dec 1 2008. The expired portion for the year 2008 has already been adjusted.
c. The business has Accounts receivable of 14,500 as at the end of 2009, it is estimated that only 90% of this is collectible. Allowance for doubtful accounts has an unadjusted balance of 750.
d. a six month advertising contract was entered into by the business which required an advance payment of 2400 on Nov 2 2009 and was debited to advertising expense.
e. rent income was credited for 18,000 representing three months rent received from a lessee on Oct 15 2009.