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					Adjusting entries practice. Record adjusting entries for the following.

I. Accrued Expenses:

A.    A company pays each of its two office employees each Friday at the rate of $100 per day each for a five-
      day week that begins on Monday. If the monthly accounting period ends on Tuesday and the employees
      worked on both Monday and Tuesday, the month-end adjusting entry to record the salaries earned but
      unpaid is:
B.    The company has a bank loan and has incurred (but not recorded) interest expense of $1,500 for the year
      ended December 31, 2004. The company must pay the interest on January 5, 2005.
C.    On April 1, the company retained an attorney at a flat monthly fee of $2,500. This amount is payable on the
      12th of the following month

II.   Accrued Revenue

A.    On December 31, Connelly Company had performed $5,000 of management services for clients that had
      not yet been billed. Prepare Connelly's adjusting entry to record these fees earned.
B.    Pfister, Co. leases an office to a tenant at the rate of $5,000 per month. The tenant contacted Pfister and
      arranged to pay the rent for December 2004 on January 8, 2005. Pfister agrees to this arrangement.
C.    The company collects rent monthly from its tenants. One tenant whose rent is $750 per month has
      not paid his rent for December.

III. Prepaid expenses

A.    On June 30, 2004 Apricot Co. paid $5,000 cash for management services to be performed over a two-year
      period. Apricot follows a policy of recording all prepaid expenses to asset accounts at the time of cash
      payment. The adjusting entry on December 31, 2004 for Apricot would be…
B.    Prior to recording adjusting entries, the Office Supplies account had a $359 debit balance. A physical count
      of the supplies showed $105 of unused supplies available. The required adjusting entry is:
C.    On April 1, 2004 a company paid the $1,350 premium on a three-year insurance policy with benefits
      beginning on that date. What will be the adjusting entry for the year ended December 31, 2004?

IV. Unearned revenues

A.    ABC Co. leased a portion of its store to another company for eight months beginning on October 1, 2004 at
      a monthly rate of $800. This other company paid the entire $6,400 cash on October 1, which ABC Co.
      recorded as unearned revenue. The journal entry made by ABC Co. at year- end on December 31, 2004
      would be…
B.    On May 1, 2004 Giltus Advertising Company received $1,500 from Julie Bee for advertising services to be
      completed April 30, 2005. The Cash receipt was recorded as unearned fees and at December 31, 2004, $500
      of the fees had been earned. The adjusting entry on December 31 Year 1 should be…
C.    On January 1, Denton Mabrey College received $1,200,000 in Unearned Tuition Revenue from its students
      for the spring semester, which spans four months beginning on January 2. What is the adjusting entry for
      Jan 31?

V.    Depreciation

      A company purchased a new truck at a cost of $42,000 on July 1, 2004. The truck is estimated to have a
      useful life of 6 years and a salvage value of $3,000. What is the adjusting entry for the year ended
      December 31, 2004?

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