- Six transactions (given below) were completed during 2019 by Lucky Company. The annual accounting period ends December 31. Each transaction will require an adjusting entry at December 31, 2019.
- On May 1, 2019, Lucky Company paid $12,600 for one year’s rent beginning on that date. The rent payment was recorded as follows:
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May 1, 2019
Prepaid rent expense $12,600
- Lucky Company purchased office supplies during the year that cost $700 and placed the supplies in a storeroom for use as needed. The purchase was recorded as follows:
February 1, 2019
Office supplies inventory $700
At the end of 2019, a count showed unused office supplies of $150 in the storeroom. There was no beginning inventory of supplies on hand.
- On December 31, 2019, Lucky Company owed employees $3,000 for wages earned during December. These wages had not been paid nor recorded so far.
- On December 31, 2019 a tenant renting some office space from Lucky Company had not paid the monthly rent of $500, yet.
- On December 31, 2019, Lucky company received a tax bill of $ 300 from the city for 2019 property.
- Assume Lucky Company publishes a monthly magazine. On October 1, 2019, the company collected $240 for a yearly subscription. The $240 collection was recorded as follows:
October 1, 2019
Unearned subscription revenues 240
- For each transaction (A … F) journalize the adjusting entry at the end of the year (December 31, 2019). Get Finance homework help today