Adjusting Entries The following data were obtained from an analysis of the accounts of Noble… 1 answer below »
Ace your studies with our custom writing services! We've got your back for top grades and timely submissions, so you can say goodbye to the stress. Trust us to get you there!
Order a Similar Paper Order a Different Paper
Adjusting Entries
The following data were obtained from an analysis of the accounts of Noble Distributor Company as of March 31, 2008, in preparation of the annual report. Noble records current transactions in nominal accounts. What are the appropriate adjusting entries?
(a) Prepaid Insurance has a balance of $14,100. Noble has the following policies in force:
Policy
Date
Term
Cost
Coverage
A
1/1/08
2 years
$ 3,600
Shop equipment
B
12/1/07
6 months
1,800
Delivery equipment
C
7/1/07
3 years
12,000
Buildings
(b) Unearned Subscription Revenue has a balance of $56,250. The following subscriptions were collected in the current year. There are no other unexpired subscriptions.
Effective Date
Amount
Term
July 1, 2007
$27,000
1 year
October 1, 2007
22,200
1 year
January 1, 2008
28,800
1 year
April 1, 2008
20,700
1 year
(c) Interest Payable has a balance of $825. Noble owes a 10%, 90-day note for $45,000 dated March 1, 2008.
(d) Supplies has a balance of $2,190. An inventory of supplies revealed a total of $1,410.
(e) Salaries Payable has a balance of $9,750. The payroll for the 5-day workweek ended April 3 totaled $11,250.
Looking for top-notch essay writing services? We've got you covered! Connect with our writing experts today. Placing your order is easy, taking less than 5 minutes. Click below to get started.
Order a Similar Paper Order a Different Paper
