Valor Ventures prepares adjusting entries monthly The

following information concerns #4329

Valor Ventures prepares adjusting entries monthly. The following information concerns the
adjusting entries that need to be recorded on October 31, 2014, for the month just ended.a. The
Office Supplies account had a $1,000 balance on October 1. During October, the company
purchased supplies at a cost of $9,100, which was added to the Office Supplies account. The
inventory of supplies on hand at October 31 had a cost of $600.b. An analysis of the company's
insurance policies provided these facts:The total premium for each policy was paid in full at the
purchase date, and the Prepaid Insurance account was debited for the full cost. Appropriate
adjusting entries have been made to September 30, 2014.c. The company has 10 employees
who earn a total of $3,250 for every working day. They are paid each Monday for their work in
the five-day workweek ending on the preceding Friday. October 31, 2014, falls on a Friday, and
all 10 employees worked the five days that week. They will be paid salaries for five full days on
Monday, November 3, 2014.d. The company purchased a building on August 1, 2012. The
building cost $250,000, and is expected to have a $40,000 residual value at the end of its
predicted 25-year life.e. Because the company is not large enough to occupy the entire building,
it arranged to rent some space to a tenant at $2,600 per month, starting on September 1, 2014.
The rent was paid on time on September 1, and the amount received was credited to the Rent
Earned account. However, the tenant has not paid the October rent. The company has worked
out an agreement with the tenant, who has promised to pay both October's and November's
rent in full on November 15.f. On October 1, the company also rented space to another tenant
for $2,350 per month. The tenant paid five months' rent in advance on that date. The payment
was recorded with a credit to the Unearned Rent account.Required1. Use the information to
prepare the October 31, 2014, month-end adjusting entries.2. Prepare journal entries to record
the subsequent cash transactions described in items (c) and (e).View Solution:
Valor Ventures prepares adjusting entries monthly The following information concerns

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