Presented below is
information related to Anderson, Inc. at the close of the fiscal year ending
December 31:
a. Anderson had paid the local newspaper $335 for
an advertisement to be run in January of the next year, charging it to
Advertising Expense.
b. On November 1, Anderson borrowed $9,000 from
Yorkville Bank issuing a 3-month, 10% note.
c. Salaries and wages due and unpaid December 31
were $2,480.
d. Anderson loaned money earlier in the year to
Mulder, Inc. and signed an interest-bearing note; interest earned by Anderson
but not received as of December 31 is $500.
e. Stamps and stationery on hand, $110; Company
charged this amount to Stationery and Postage Expense account when purchased.
f. Anderson has not yet paid the December rent on
the building that it occupies, $1,000.
g. Insurance paid November 1 for one year, $930,
charged to Prepaid Insurance when paid.
h. On December 1, Anderson received $2,580 from
Raines Corporation in payment of 6 months’ rent for office space occupied by
Raines Corporation in the building and credited Unearned Rent Revenue when
received.
i. On September 1, Anderson paid 6 months’ rent in
advance on a warehouse, $6,600, and debited the asset account Prepaid Rent.
j. The bill from the Twin Peaks Light & Power
Company for December has been received but not yet entered or paid, $510.
REQUIRED
Prepare adjusting journal
entries as of December 31 in good form. You do not need to show the entries
earlier in the year that led to the adjusting journal entries that you are
making.
TUTORIAL PREVIEW
|
No.
|
Account Dscription
|
Debit
|
Credit
|
|
a.
|
Prepaid Advertising expenses
|
35
|
|
|
Advertising expenses
|
35
|
File name: Anderson,
Inc.xlsxFile type: .docx PRICE: 10
