Consider the following items for Wolverine Properties during 2024.
On December 1,2024 , Wolverine received $4,000 cash from a company renting office space from Wolverine. The payment, representing rent for December and January, was recorded to Deferred Revenue on December 1. Revenue for other rentals totaled $125,000.
Wolverine purchases a one-year property insurance policy on July 1,2024 , for $13,200. The payment was recorded in Prepaid Insurance for the entire amount on July 1. Wolverine had $5,400 in insurance costs for the first six months of the year.
Employee salaries of $3,000 for the month of December will be paid in early January 2025 . Salaries paid for the first 11 months of the year total $42,000.
On November 1,2024 , the company borrowed $15,000 from a bank. The loan requires principal and interest at 10% to be paid on October 30, 2025.
Office supplies at the beginning of 2024 totaled $1,000. On August 15 , Wolverine purchased an additional $3,400 of office supplies, recorded to the Supplies account. By the end of the year, $500 of office supplies remains.
Required:
For each item, determine the accounts to be adjusted on December 31, 2024, the amount of the adjustment, and the ending balance. Assume no adjustments were previously made during the year.
Note: Amounts to be deducted should be indicated with a minus sign.
able[[,Account],[1.,,],[,,],[Balance before adjustment,,],[December 31 Adjustment,,],[December 31 Ending balance,,],[2.,,],[,,],[Balance before adjustment,,],[December 31 Adjustment,,],[December 31 Ending balance,,],[3.,,],[,,],[Balance before adjustment,$,],[December 31 Adjustment,,],[December 31 Ending balance,,],[4.,,],[,,],[Balance before adjustment,$,],[December 31 Adjustment,,],[December 31 Ending balance,,],[5.,,],[,,],[Balance before adjustment,,],[December 31 Adjustment,,],[December 31 Ending balance,,],[,,]]
Consider the following items for Wolverine Properties during 2024
1.On December 1,2024,Wolverine received $4,000 cash from a company renting office space from Wolverine.The payment,
totaled $125.000
2. Wolverine purchases a one-year property insurance policy on July 1, 2024, for $13,200. The payment was recorded in Prepaid Insurance for the entire amount on July 1. Wolverine had $5,400 in insurance costs for the first six months of the year. 3.Emplovee salaries of $3,000 for the month of December will be paid in early January 2025.Salaries paid for the first 11 months of the year total $42,000. 4.On November 1,2024,the company borrowed $15,000 from a bank.The loan requires principal and interest at 10% to be paid on October 30,2025 5.Office supplies at the beginning of 2024 totaled $1,000.On August 15,Wolverine purchased an additional $3,400 of office supplies, recorded to the Supplies account. By the end of the year, $5oo of office supplies remains.
Required: For each item,determine the accounts to be adjusted on December 31,2024,the amount of the adjustment,and the ending balance Assume no adjustments were previously made during the year. Note: Amounts to be deducted should be indicated with a minus sign.
Account
1.
Balance before adjustment
December 31 Adjustment
December 31 Ending balance
2.
Balance before adjustment
December 31 Adjustment
December 31 Ending balance 3.
Balance before adjustment
$
0
December 31 Adjustment
December 31 Ending balance
4.
Balance before adjustment
$
$
December 31 Adjustment
December 31 Ending balance 5.
Balance before adjustment
$
-
December 31 Adjustment
December 31 Ending balance
