113 center company is completing the accounting cycle at the end of the annual accou 4314246

113 center company is completing the accounting cycle at the end of the annual accou 4314246

113.Center Company is completing the accounting cycle at the end of the annual accounting period, December 31, 2016. Adjusting entries have not been made during the year so three adjusting entries must be made at this date to update the accounts. The following accounts, selected from Center Company's chart of accounts, are to be used for this purpose. They are coded to the left of each title for convenient reference.

A.Supplies expenseI.Unearned rent revenue

B.SuppliesJ.Rent expense

C.Interest receivableK.Wage expense

D.EquipmentL.Depreciation expense

E.Accumulated depreciationM.Interest expense

F.Notes payableN.Interest revenue

G.Interest payableO.Rent revenue

H.Wages payableP.Some other account not in this list

Required:

Indicate the appropriate account code and amount for each of the required adjusting entries at December 31, 2016.

TransactionDebitsCredits

CodeAmountCodeAmount

A.On December 1, 2016, collected $9,000 rent revenue in advance for its warehouse space temporarily rented to a customer (credited in full to Unearned rent revenue). The rent was collected for December, 2016, and January and February, 2017.                                                          

B.Office supplies purchased during 2016 amounted to $5,000, which was debited in full to office supplies during the year. The year-end count of office supplies showed $600 of supplies on hand. The beginning balance of office supplies was $800.                                                          

C.On November 1, 2016, the company signed a $50,000, interest-bearing note payable. It was for one year and specified 12 percent annual interest payable at the maturity date of the note.                                                          

114.Lane Company is completing the accounting cycle at the end of its annual accounting period, December 31, 2016. Adjusting entries have not been made during the year so three adjusting entries must be made to update the accounts. The following accounts, selected from the company's chart of accounts, are to be used for this purpose. They are coded to the left of each title for convenient reference.
 

A.CashI.Unearned rent revenue

B.Notes payableJ.Rent expense

C.Interest receivableK.Wage expense

D.MachineryL.Depreciation expense

E.Accumulated depreciationM.Interest expense

F.Notes payableN.Interest revenue

G.Interest payableO.Rent revenue

H.Wages payableP.Some other account not in this list

Required:

Indicate the appropriate account code and amount for each of the required adjusting entries at December 31, 2016.

TransactionDebitsCredits

  CodeAmountCodeAmount

A.Unpaid wages of $2,400 at December 31, 2016, have not been recorded.                

B.On October 1, 2016, a note receivable was received from a customer. The note was for $5,000, has a one-year maturity, and has an interest rate of 14%. The interest is to be received at the maturity date of the note.                                                          

C.On December 1, 2016, collected $1,800 rent in advance from a tenant. This was rent for six months and was credited to unearned rent revenue.                                                          

115.Below are four transactions that were completed during 2016 by Timber Lodge. The annual accounting period ends on December 31. Each transaction will require an adjusting entry at December 31, 2016.

Required:

Prepare the 2016 adjusting entries required for Timber Lodge.

A. On July 1, 2016, Timber Lodge paid a two-year insurance premium for a policy on its facilities. This transaction was recorded as follows:
 

Prepaid insurance8,000

   Cash 8,000

B. On December 31, 2016, a tenant renting some storage space from Timber Lodge had not paid the rent of $750 for December.
C. On September 1, 2016, Timber Lodge borrowed $25,000 cash and gave a one-year, 6 percent, note payable. The interest is payable on the note's due date of August 31 2017. The September 1, 2016 transaction was recorded as follows:

Cash25,000

   Note payable 25,000

D. On October 1, 2016, Timber Lodge collected $10,000 from a tenant for two years rent beginning October 1, 2016. The $10,000 collection was recorded as follows:

Cash10,000

   Unearned rent revenue 10,000

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