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i passed the practice questions this is nothing like the practice questions – www.savvyessaywriters.net

 

a.-b. Merchandise Inventory, before adjustment, has a balance of $7,400. The newly counted inventory balance is $7,900.

  1. Unearned Seminar Fees has a balance of $5,900, representing prepayment by customers for five seminars to be conducted in June, July, and August 2019. Two seminars had been conducted by June 30, 2019.
  2. Prepaid Insurance has a balance of $11,400 for six months’ insurance paid in advance on May 1, 2019.
  3. Store equipment costing $13,450 was purchased on March 31, 2019. It has a salvage value of $490 and a useful life of six years.
  4. Employees have earned $240 that has not been paid at June 30, 2019.
  5. The employer owes the following taxes on wages not paid at June 30, 2019: SUTA, $7.20; FUTA, $1.44; Medicare, $3.48; and social security, $14.88.
  6. Management estimates uncollectible accounts expense at 1 percent of sales. This year’s sales were $1,900,000.
  7. Prepaid Rent has a balance of $6,450 for six months’ rent paid in advance on March 1, 2019.
  8. The Supplies account in the general ledger has a balance of $390. A count of supplies on hand at June 30, 2019, indicated $145 of supplies remain.
  9. The company borrowed $8,800 from First Bank on June 1, 2019, and issued a four-month note. The note bears interest at 6 percent.

Required:
Based on the information above, record the adjusting journal entries that must be made for Sufen Consulting on June 30, 2019. The company has a June 30 fiscal year-end.

Analyze:
After all adjusting entries have been journalized and posted, what is the balance of the Prepaid Rent account?

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