90.2K

Verified Solution

Link Copied!

image

Nickleby's Ski Store is completing the accounting process for its first year ended December 31, 2020. The transactions during 2020 have been journalized and posted. The following data are available to determine adjusting journal entries: a. The unadjusted balance in Office Supplies was $850 at December 31,2020 . The unadjusted balance in $ upplies Expense was $0 at December 31, 2020. A year-end count showed $100 of supplies on hand. b. Wages earned by employees during December 2020 , unpaid and unrecorded at December 31,2020 , amounted to $3,700, The last paycheques were issued December 28; the next payments will be made on January 6,2021 . The unadjusted balance in Wages Expense was $40,000 at December 31,2020. c. Part of the store's basement is now being rented for $1,100 per month to K. Frey On November 1,2020, the store collected six months' rent in advance from Frey in the amount of $6,600. It was credited in full to Deferred Rent Revenue when collected. At December 31, 2020, the unadjusted Rent Revenue balance was $0. d. The store purchased delivery equipment at the beginning of the year. The estimated depreciation for 2020 is $3,000, although none has been recorded yet. e. On December 31,2020 , the unadjusted balance in Prepaid Insurance was $4,800. This was the amount paid in the middle of the year for a two-year insurance policy. with coverage beginning on July 1, 2020. The unadjusted balance in Insurance Expense was $800, which was the cost of insurance from January 1 to June 30,2020. 1. Nickleby's store did some ski repair work for Frey. On December 31, 2020, Frey had not yet paid for work completed, amounting to $750. This amount has not yet been recorded as Repair Shop Revenue. Collection is expected during January 2021. 2. For each situation, prepare the adjusting journal entry that should be recorded for Nickleby's at December 31,2020 . (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet The unadjusted balance in Office Supplies was $850 at December 31,2020 . The unadjusted balance in Supplies Expense was $0 at December 31,2020 . A year-end count showed $100 of supplies on hand. Note: Enter debits before credits. 2. For each situation, prepare the adjusting journal entry that should be recorded for Nickleby's at December 31,2020 . (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet 6 K. Frey. On November 1,2020 , the store collected six month' rent in advance from Frey in the amount of $6,600. It was credited in full to Deferred Rent Revenue when collected. The unadjusted balance in Rent Revenue was $0 at December 31, 2020. Note: Enter debits before credits. 2. For each situation, prepare the adjusting journal entry that should be recorded for Nickleby's at December 31,2020 . (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet

Answer & Explanation Solved by verified expert

See Answer