Prepare the missing adjusting entry. For each journal entry write Dr for debit and Cr for credit.
A) Unearned rent at 1/1/10 was $5,300 and at 12/31/10 was $6,000. The
records indicate cash receipts from rental sources during 2010 amounted
to $60,000, all of which was credited to Unearned Rent Account. Prepare
the missing adjusting entry.
B) Data relating to the balances of various accounts affected by
adjusting or closing entries appear below. (The entries which caused the
changes in the balances are not given). Supply the missing journal
entries which would logically account for the changes in the account
balances. Interest receivable at 1/1/10 was $5,000. During 2010 cash
received from debtors for interest on outstanding notes receivable
amounted to $5,000. The 2010 income statement showed interest revenue in
the amount of $4,900. Provide the missing adjusting entry that must
have been made, assuming reversing entries are not made.
C) Accumulated depreciation-equipment at 1/1/10 was $200,000. At
12/31/10, the balance of the account was $320,000. During 2010, one
piece of equipment was sold. The equipment had an original cost of
$50,000 and was 1/2 depreciated when sold. Prepare the missing adjusting
entry.
D) Allowance for doubtful accounts on 1/1/10 was $40,000. The balance
in the allowance account on 12/31/10 after making the annual adjusting
entry was $60,000 and during 2010 bad debts written off amounted to
$30,000. Provide the missing adjusting entry.
E) Prepaid rent at 1/1/10 was $50,000. During 2010 rent payments of
$110,000 were made and charged to "rent expense." The 2010 income
statement shows as a general expense the item "rent expense" in the
amount of $135,000. You are to prepare the missing adjusting entry that
must have been made, assuming reversing entries are not made.
F) Retained Earnings at 1/1/10 was $0 and at 12/31/10 was $400,000.
During 2010, cash dividend of $50,000 were paid and a stock dividend of
$100,000 was issued. Both dividends were properly charged to retained
earnings. Provide the missing closing entry.
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