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joeyjoey
Dec 12, 2007, 11:54 AM
Hi. My name is Joey. I am having a hard time with an accounting assignment and was wondering if anyone could help. I am entering Adjustment entries for the period 9/1/200x - 9/30/200x. The problem I am having is that after I enter all of my Journal Adjustment entries I come up $150.00 short of what I should have. I cannot figure out what I am doing wrong.The total of all Adjustment Journal entries should equal $4,054. My total comes up to $3904.00. I have included all of my entries below along with all relevant source documents.

Thanks.

A. Adjust unearned photographic service revenue for September. Assume photographic revenue is earned evenly over the entire month. (refer to document 2)

Document 2 states: I received a check today for $6,000 from Providence Country Club to photograph events held at the club over the next 12 months. ($6000.00 was received on Sept.1 and debited to cash)

Dr. Unearned Photo Service Revenue for $500
Cr. Photo Service Revenue for $500

Calculation $6000 / 12 = $500
________________________________________


B. Expired Insurance (refer to document 3)

Document 3 states: Premium statement $2400 policy coverage 12 months beginning Sept. 1, 2007

Dr. Insurance Expense $200
Cr. Prepaid Insurance $200

Calculation = $2,400 / 12 = $200
_________________________________________


C. Expired rent (refer to document 4)

Document 4 states: rent 9/1/07 to 12/31/07 amount due $3600

Dr. Rent Expense $900
Cr. Prepaid Rent $900

Calculation = $3,600 / 4 = $900
____________________________________________


D. Photographic Supplies on hand September 30, 2007 is $315.00 ( I accumulated $1,064 through out the month)

Dr. Photographic Supplies Expense $749
Cr. Photographic Supplies $749

Calculation: $1064 - $315 = $749
____________________________________________


E. Office supplies on hand September 30, 2007 us $125.00 ( I accumulated $230.00 worth of office supplies)


Dr. Office Supplies Expense $105
Cr. Office Supplies $105

Calculation $230 - $125 = $105.00
_______________________________________________

F. Depreciation on photographic equipment for September, $400

Dr. Deprec. Exp - Photo Equipment $400
Cr. Acc Dep - Photo Equipment $400

________________________________________________

G. Depreciation on office equipment for September, $250

Dr. deprec exp - office equipment $250
Cr. Acc dep - office equipment $250

No calculation - This number was given

----------------------------------------------------------------------------------

H. Depreciation on vehicle for sept, $500

Dr. Deprec Exp - Vehicle $500
Cr. Acc Dep - Vehicle $500

No calculation - This number was given

_____________________________________________


I. Salaries accrued on September 30, $350

Dr. salary expense $350
Cr salary payable $350

_____________________________________________

J. Accrue Interest on note payable (refer to Document 12, use a 360-day year)

Document 12 states: Sept 12, 2007: I have completed negotiations with Central National Bank to borrow $20,000.00 Prepare a journal entry to issue a 60-day, 10% note to the bank for that amount. I Debited cash on Sept. 12 for $20,000 and Cr. Notes payable for $20,000

Dr. Interest Expense $100.00
Cr. Interest Payable $100.00

Hermansherman
Dec 12, 2007, 02:29 PM
500+200+900+749+105+400+250+500+350+100= 4054

joeyjoey
Dec 13, 2007, 11:54 AM
500+200+900+749+105+400+250+500+350+100= 4054

You are right but my post is wrong. My book says entry H should be $350.00 not $500.00. I don't know where I came up with that number.

H. Depreciation on vehicle for sept, $350

Dr. Deprec Exp - Vehicle $350
Cr. Acc Dep - Vehicle $350

No calculation - This number was given


$500.00 would make it all balance though.

500+200+900+749+105+400+250+350+350+100= 3904

Mathandler1
Dec 13, 2007, 12:33 PM
Hi Joey,

Here is what I came up with:

500+200+900+749+105+400+250+500+350+100= 4054
(700) + (1649) + (505) + (750) + (450)
(2349) + (1255) + (450)
(2349) + (1705)

So, I do not know how you came up with 3904. Hope this helps?

joeyjoey
Dec 17, 2007, 07:29 PM
I figured I would update my previous question. It turns out the A-1 Photography fifth edition project book has an incorrect entry for the adjustments. The Vehicle depreciation is listed as $350.00 in the book but should actually be $500.00 (I have verified this with the publisher). Thanks all for your help!

Joey

Corito61
Jun 10, 2008, 10:54 PM
I read here that A-1 Photography fifth edition project book has an incorrect entry for the adjustments: the vehicle is listed as $350 but it should be $500. Somebody knows something else about this?