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Hi there.. I had a question about adjusting entries.
The question is asking that one quarter of the unearned revenue was still unearned. I know the entry for that, the journal entry but I was wodnering how I would calculate the amount. On the Trial Balance it says unearned revenue of 2,280. So if it's one quarter unearned, would it be 570? 2280 x 1/4 ?
That's the correct dollar amount - just make sure you understand what that dollar amount represents. It states that is how much is still unearned. That means that is the amount that will be earned in the future and should remain in the unearned revenue account. The adjusting entry itself would be for the difference, the amount that has now been earned.
Thank you. Yeah I was just curious about the answer. I had few other questions as well. Actually someone gave me a textbook for accounting and I'm going to start school in September and I was having hard time with a few questions. I was wondering if you can help me out with the following so then I would be able to know how to do the rest. Thank you.
1) how would you record the following adjusting entries?
a. during the next fiscal year, $5,400 of the mortgage payable is to be paid
- on the trial balance it says mortgage payable with %105,00 (credit side)
2) In this question, it is asking me to do an analysis of each error that shows (1) the incorrect entry, (2) the correct entry, and (3) the correcting entry. HI was wodnering if you can help me with one, since there are 10 of them listed here. One would be:
... The first salary payment made in March was for $2,000, which included $75 of salaries payable on February 28. The payment was recorded as a debit to Salaries Expense of $2,000 and a credit to cash of $2,000. ( No reversing entries were made on March 1)
Oh sorry I mean $105,000
1. Since $5,400 of the mortgage is payable next fiscal year, this amount will be reported as a current liability and the balance of $99.600 as a long term liability.Quote:
Originally Posted by Minder86
2. Incorrect entry - Debit salaries expense, credit cash
Correct entry Debit Salaries expense $1,925, Debit Salaries payable, Credit cash $2,000
Correcting entry Debit Salaries payable $75, credit salaries expense $75
Oh thank you. I get it now. But I still had a few problems with these. So I was wodnering If someone can tell me how these were done. I am a mother of a nursing student and I am interested in doing accounting diploma. So I want to learn before I decide. I was wondering if someone can tell me what the incorrect entry, the correct entry and the correcting entry would be. :)
1. cash received from a customer on account was recorded as $670 instead of $760.
2. The purchase on account of a computer monitor that cost $900 was recorded as a debit to supplies and a credit to accounts receivable for $900.
3. The computer monitor purchased in item 2 was purchased on march 1 and has an estimated useful life of 5 years. Amortization for march has not been recorded yet.
4. a payment of $75 for advertising expense was entered as a debit to miscellaneous expense of $50 and a credit to cash of $50.
5. A $110 cash payment for a repair expense on equipment was recorded as a debit to equipment of $101 and a credit to cash of $101.
6. the owner, hubert maurice, paid himself $1,800 and recorded this as salary expense.
7. march rent of $1,150 was paid on march 26. The company has not recorded this transaction
1. Debit Cash for the amount of the difference
Credit A/R for the difference of the 2 amounts
2. Reverse the first entry, then record the correct entry
3. Compute Depreciation for one month based on the method of depreciation used and or the salvage value of the asset.
4. Reverse first entry, then record the correct entry.
5. Reverse the first entry, then record the correct entry.
6. Debit Owners' Drawing account for the amount
Credit Salary Expense for the amount
7. Debit Rent Expense for the amount
Credit Cash for for the amount
Thank you :)
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