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ACC 291T Wk 3 – Practice: Connect Knowledge Check (New)
- Depreciation on the company’s equipment for the year is computed to be $12,000.
- The Prepaid Insurance account had a $8,000 debit balance at December 31 before adjusting for the costs of any expired coverage. An analysis of the company’s insurance policies showed that $1,510 of unexpired insurance coverage remains.
- The Office Supplies account had a $220 debit balance at the beginning of December; and $2,680 of office supplies were purchased in December. The December 31 physical count showed $260 of supplies available.
- One-fourth of the work related to $11,000 of cash received in advance was performed this period.
- The Prepaid Rent account had a $5,200 debit balance at December 31 before adjusting for the costs of any expired coverage. An analysis of rental policies showed that $3,690 of rental coverage had expired.
- Wage expenses of $3,000 have been incurred but are not paid as of December 31.
Prepare adjusting journal entries for the year ended (date of) December 31 for each of these separate situations.
- Wages of $6,000 are earned by workers but not paid as of December 31.
- Depreciation on the company’s equipment for the year is $11,200.
- The Office Supplies account had a $310 debit balance at the beginning of December. During December, $5,984 of office supplies are purchased. A physical count of supplies at December 31 shows $648 of supplies available.
- The Prepaid Insurance account had a $5,000 balance at the beginning of December. An analysis of insurance policies shows that $3,400 of unexpired insurance benefits remain at December 31.
- The company has earned (but not recorded) $500 of interest revenue for the year ended December 31. The interest payment will be received on 10 days after the year-end January 10.
- The company has a bank loan and has incurred (but not recorded) interest expense of $4,000 for the year ended December 31. The company will pay the interest five days after the year-end on January 5.
For each of the above separate cases, prepare adjusting entries required of financial statements for the year ended (date of) December 31.
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[The following information applies to the questions displayed below.]
Nix’It Company’s ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances (Nix’It uses the perpetual inventory system).
Merchandise inventory | $ | 40,800 | Sales returns and allowances | $ | 5,900 | |
T. Nix, Capital | 121,300 | Cost of goods sold | 106,800 | |||
T. Nix, Withdrawals | 7,000 | Depreciation expense | 10,900 | |||
Sales | 159,000 | Salaries expense | 35,500 | |||
Sales discounts | 3,500 | Miscellaneous expenses | 5,000 | |||
A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $39,350.
Prepare the entry to record any inventory shrinkage.