Accounting Homework Problems

timer Asked: Apr 22nd, 2016

Question description

The following information for Station Products is available on June 30, 2014, the end of a monthly accounting period. Prepare the necessary adjusting journal entries for Station Products for the month of June for each situation given. Adjusting entries are recorded at the end of every quarter prior to the preparing financial statements. You may omit journal entry explanations.

A.  Station purchased a 1-year insurance policy on June 1, 2014, and debited an asset account for $3,600.

B.  On May 1, 2014, a tenant in an office building owned by Station Products paid $6,600, which represents three months' rent in advance. The amount received was credited to the Unearned Rent Revenue account.

C.  On June 1, 2014, the balance in the Supplies account was $420. During June, office supplies costing $840 were purchased and half was paid in cash, with the balance on account. A physical count of office supplies at June 30 revealed that there was $125 of supplies still on hand.

D.  On March 31, 2014, Station Products purchased equipment for $30,000. The company calculated annual depreciation to be $6,000.

E.  Station Products has 7 employees who earn $120 per day, and 3 employees who earn $200 per day, respectively. Employees are paid each Friday for a five-day work week that begins each Monday. June 30 is a Thursday. 

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