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    kizzyb's Avatar
    kizzyb Posts: 31, Reputation: 1
    Junior Member
    		  
    #1

    Mar 2, 2006, 04:21 PM
    Accounting homework
    To journalize entries for a variesty of accruals.

    Gilbert company presented the following data for its December 31, 2002 adjustment process.

    (a) The office supplies Expense account showa a balance pior to adjustment of 4,440. An inventory count shows office supplies on of 690.

    Dr. Office supplies expense $5,130
    Cr. Cash $5,130

    (b) Thr rent income account shows the receipt of 7.000 for five- month lease On Novemeber 1 20x2.

    Dr. Rent Expense 7,000
    Cr. Rent income 7,000

    (c)The prepaid insurance account shows a payment of 4,800 for three- year premium on April 1, 20x2.

    Dr. prepaid insurance Expense 4,800
    Cr. Prepaid Insurance 4,800

    (d) The company holds a 90-day note dated December 11. 20x2. The note has a face value of 10,000 and carries interest at 8%.

    Dr. Interest Expense 200
    CR. Ibterest Income 200

    (e) Salaries of 130,000 are paid weekly on MOnday for the previous week. This year, December 31 fell on a Thursday.

    Dr. Salaries Expense 130,000
    C. SAlaries payable 130,000

    (f) THe unearned Subscription income account shows a credit balance of 72,000, representing subscriptions to four issues of a company publication.
    three issues have been delivered to subscribers in 20x2.

    check my answer.
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
    Ultra Member
    		  
    #2

    Mar 4, 2006, 06:25 PM

    I am assuming you need to make the adjusting entries at year end. Is that a correct assumption?

    Quote Originally Posted by kizzyb
    To journalize entries for a variesty of accruals.

    Gilbert company presented the following data for its December 31, 2002 adjustment process.

    (a) The office supplies Expense account showa a balance pior to adjustment of 4,440. An inventory count shows office supplies on of 690.

    Dr. Office supplies expense $5,130
    Cr. cash $5,130

    I am not sure on this. They are telling you what Office Expense is, but they do not appear to give you enough info.


    Quote Originally Posted by kizzyb
    (b) Thr rent income account shows the receipt of 7.000 for five- month lease On Novemeber 1 20x2.

    Dr. Rent Expense 7,000
    Cr. Rent income 7,000

    Dr. Rent Expense 2,850(7,000x2/5)
    Cr. Rent Income 2,850


    Quote Originally Posted by kizzyb
    (c)The prepaid insurance account shows a payment of 4,800 for three- year premium on April 1, 20x2.

    Dr. prepaid insurance Expense 4,800
    Cr. Prepaid Insurance 4,800

    Dr. Insuracne Expense 1,200
    Cr. Prepaid Insurance 1,200 (4,800 x 9/36)


    Quote Originally Posted by kizzyb
    (d) The company holds a 90-day note dated December 11. 20x2. The note has a face value of 10,000 and carries interest at 8%.

    Dr. Interest Expense 200
    CR. Ibterest Income 200

    Dr. Interest Expense 44.44 (10,000 x .08/4 x 20/90)
    CR. Interest Payable 44.44


    Quote Originally Posted by kizzyb
    (e) Salaries of 130,000 are paid weekly on MOnday for the previous week. This year, December 31 fell on a Thursday.

    Dr. Salaries Expense 130,000
    C. SAlaries payable 130,000

    Dr. Salaries Expense 104,000 (130,000 x 4/5)
    C. Salaries payable 104,000

    The Friday is of 2003 (the new year). Therefore, don’t count the Friday in the 2002 numbers.


    Quote Originally Posted by kizzyb
    (f) THe unearned Subscription income account shows a credit balance of 72,000, representing subscriptions to four issues of a company publication.
    three issues have been delivered to subscribers in 20x2.

    check my answer.

    Dr. Unearned Revenue 54,000 (72,000 x 3/4)
    Cr. Revenue 54,000

    You have earned 75% of the money. 3 of 4 subscriptions. So 75% of $72,000 = 54,000
    kizzyb's Avatar
    kizzyb Posts: 31, Reputation: 1
    Junior Member
    		  
    #3

    Mar 5, 2006, 01:33 PM
    So wish one do I do reversing enteries on.
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
    Ultra Member
    		  
    #4

    Mar 5, 2006, 01:39 PM
    Reversing entries seem a bit silly to me.

    That being said:
    b, d, e could use reversing entries
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