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In the General Journal of Krywa TV Service, record the adjusting entries for the three-month period ending March 31, 20—. (a) On January 1, rent was paid in advance for six months at $250 per month....

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In the General Journal of Krywa TV Service, record the adjusting entries for the three-month period ending March 31, 20—.

(a) On January 1, rent was paid in advance for six months at $250 per month. The total paid ($1,500) was debited to Rent Prepaid.

(b) A one-year insurance policy was purchased on January 2, $1,800, and was charged to Insurance Prepaid. No monthly adjustments have been recorded.

(c) On January 1, advertising costs were prepaid for six months, $360.

(d) Salaries owing to the employee but not yet paid on March 31, $400.

(e) Services to customers who have paid in advance have been completed in March, $560.

(f ) Interest accrued for three months on a bank loan, $375.

(g) Amortization on Tools & Equipment is to be calculated for three months on the book value of $1,600 at an annual rate of 25%.

 

Answered 134 days After May 19, 2022

Solution

Mayuri answered on Sep 30 2022
75 Votes
The Journal entries are as follows:
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