trying to do some homework and i m stuck on these 10 adjusting journal entries 1 385661
Trying to do some homework and I’m stuck on these 10 adjusting journal entries: 1. Wages earned by employees during December and to be paid in January are $33,875; associated payroll taxes on these wages are $2,710. 2. On July 1, a client paid CM2 $205,720 in advance for a year of consulting services. In addition, of the beginning balance in Unearned Revenue, 60% of the work has now been completed. 3. You discover that a product sale was made on account and recorded in December for $128,600; the product had not yet been shipped. The cost of the product was $68,742. 4. Bad debt expense is estimated to be 7% of ending Accounts Receivable. (Round to the nearest whole dollar.) 5. The Prepaid Expense account has a balance of $22,774. This balance includes $11,200 for a two year insurance policy purchased on January 1, 2011. Of the remaining prepaid balance, 30% of the benefit had now expired. (round to the nearest whole dollar.) 6. Annual depreciation rates are 7% for Buildings & Equipment/Furniture. No salvage. (Round to the nearest whole dollar.) 7. The long term liabilities were outstanding for all of 2011 and accrue interest at 6% APR. CM2 records accrued interest quarterly (interest was last updated on Sept. 30.) The company is required to pay the interest annually on January 1. 8. On December 15, CM2 declared a dividend of $110,000, to be paid on January 15, 2012. It had not yet been recorded. 9. At December 31, the Long Term Investments (Available for sale securities) had a fair value of $160,186. [CM2 uses a “Fair Value Adjustment” account (an adjunct account to the Investments) when marking the investment portfolio to fair value at year end.] 10. Income tax is based on a 35% tax rate. I am also looking for help with the closing entries too, but just giving me help with the adjusting entries would be amazing. Thank you all for the help, and I will be rating all answers!
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