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Chapter 2 Handfffout PDF
Chapter 2 Handfffout PDF
Chapter 2 Handfffout PDF
Record the following adjusting entries for the month ended October 31, 2015:
1 Company purchased additional supplies totaling $6,200 on credit. Office supplies totaling $3,000 at 10/1/15, $2,400 remained at 10/31/15.
2 The Company paid for a two year property insurance policy on 10/1/15 with a total premium of $48,000.
3 Monthly depreciation for warehouse racking is $150. The equipment was purchased with an original cost of $12,600 on 10/1/15.
4 The Company receives a deposit for a contratcing job to take place in October and November for $15,000. Half of work is completed in October.
5 The Company reviews the month-end billing run and discovers that unbilled jobs for revenue earned totaled $7,500.
6 Invoices sent by advertising consultants totaling $25,000 are received the first week of November, but relate to services performed in October.
7 The Company pays salaries every other Monday for the two week period ending the prior Friday. Salaries paid on November 10 cover October 25th through November 7th.
Assuming the period includes five business days in October and the payroll for the period was $12,500.
8 Commissions are paid to sales personnel based on 2% of monthly gross revenue. Revenue for October was $1,000,000
9 Company lends money to a customer of $5,000 on October 1. Interest will be 6% annually.