Maurice Tutor

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    Argosy University/ Phoniex University/
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    Oct-2001 - Nov-2016

Category > Management Posted 02 Jun 2017 My Price 12.00

Adjusting Entries (Deferred Accounts)

Recording Adjusting Entries (Deferred Accounts)
In each of the following transactions (a) through (c) for Romney’s Marketing Company, use the threestep process illustrated in the chapter to record the adjusting entry at year-end December 31, 2012. The process includes (1) determining if revenue was earned or an expense incurred, (2) determining whether cash was received or paid in the past or will be received or paid in the future, and (3) computing the amount of the adjustment.
a. Collected $1,000 rent for the period December 1, 2012, to April 1, 2013, which was credited to Unearned Rent Revenue on December 1, 2012.
b. Purchased a machine for $32,000 cash on January 1, 2008. The company estimates annual depreciation at $3,000.
c. Paid $4,200 for a two-year insurance premium on July 1, 2012; debited Prepaid Insurance for that amount.

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Maurice Tutor
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Status NEW Posted 02 Jun 2017 11:06 PM My Price 12.00

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