Question 3 Freds Security has the following transactions and items requiring December 31, 2017 adjustments....
90.2K
Verified Solution
Link Copied!
Question
Accounting
Question 3
Freds Security has the following transactions and items requiring December 31, 2017 adjustments. Prepare journal entries as necessary.
a.) i.) The company purchased a 12-month insurance policy for $2,000 cash on March 1, 2017.
ii.) A December 31 adjustment is required.
b.) i.) The company entered into a contract to provide security work for a client. The client paid Freds security $10,000 on October 1, 2017. The company was required to provide security service for 12 months, from October 1, 2017 November 30, 2018.
ii.) A December 31 adjustment is required (assume the company provided security service as promised up to December 31).
c.) The company pays salaries of $8,000 every week on Sunday, based on a 7-day workweek. Assume salaries are earned at the same rate each day. This year, December 31 falls on a Thursday. Record the necessary adjustment.
d.) i.) The company purchased a car for $15,000 cash on February 1, 2017. The car is expected to have a 10-year useful life and no residual value. The companys accountant wishes to use straight line depreciation.
ii.) A December 31 adjustment is required.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
