On December 31 the end of the year the accountant

On December 31, the end of the year, the accountant for Fireside Magazine was called away
suddenly because of an emergency. However, before leaving, the accountant jotted down a few
notes pertaining to the adjustments. Journalize the necessary adjusting entries. Assume that
Fireside Magazine uses the periodic inventory system. a– b. A physical count of inventory
revealed a balance of $ 199,830. The Merchandise Inventory account shows a balance of $
202,839. c. Subscriptions received in advance amounting to $ 156,200 were recorded as
Unearned Subscriptions. At year-end, $ 103,120 has been earned.d. Depreciation of equipment
for the year is $ 12,300. e. The amount of expired insurance for the year is $ 1,612. f. The
balance of Prepaid Rent is $ 2,400, representing four months’ rent. Three months’ rent has
expired. g. Three days’ salaries will be unpaid at the end of the year; total weekly (five days’)
salaries are $ 4,000. h. As of December 31, the balance of the supplies account is $ 1,800. A
physical inventory of the supplies was taken, with an amount of $ 920 determined to be on
hand.View Solution: On December 31 the end of the year the accountant
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