Question

1. Find the adjusting journal entries for the following scenario: Zheng Corporation had the following selected transactions in the month of March. The company adjusts its accounts monthly.

At the end of March, Zheng has earned service revenue of $3,250 that it has not yet billed. It bills its clients for this amount on April 4. On April 30, it collects $2,300 of this amount due

2. Find the journal entry and adjusting journal entry for the following scenario: On December 1, a company rented office space (for its own use) for a six-month period starting on December 1 for $1,300 each month. It paid rent for the months of December and January in advance on this date.

1.

 

The company has a 9%, $12,060 bank loan payable due in one year. Interest is payable on the first day of each following month and was last paid on March 1.

2.

 

At the end of March, the company earned $290 interest on its investments. The bank deposited this amount in Zheng’s cash account on April 1.

3.

 

Zheng has five employees who each earn $420 a day. Salaries are normally paid on Mondays for work completed Monday through Friday of the previous week. Salaries were last paid on Monday, March 26. March 31 falls on a Saturday this year. Salaries will be paid next on Monday, April 2.

4.

 

At the end of March, the company owed the utility company $570 and the telephone company $270 for services received during the month. These bills were paid on April 10. (Hint: Use the Utilities Expense account for the utility and telephone services.)

5.

 

At the end of March, Zheng has earned service revenue of $3,250 that it has not yet billed. It bills its clients for this amount on April 4. On April 30, it collects $2,300 of this amount due

 

 



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