Greensboro Pest Control has the following balances in selected accounts on December 31, 2012.
Accounts Receivable $ 0
Accumulated Depreciation - Equipment 0
Interest Payable 0
Notes Payable 15,000
Prepaid Insurance 2,220
Salaries and Wages Payable 0
Unearned Service Revenue 30,000
All of the accounts have normal balances. The information below has been gathered at December 31, 2012.
1. Depreciation on the equipment for 2012 is $1,300.
2. Greensboro Pest Control paid $2,220 for 12 months of insurance coverage on October 1, 2012.
3. Greensboro Pest Control performed disinfecting services for a client in December 2012. The client will be billed $3,200.
4. On December 1, 2012, Greensboro Pest Control collected $30,000 for disinfecting processes to be performed from December 1, 2012, through May 31, 2012.
5. A count of supplies on December 31, 2012, indicates that supplies of $650 are on hand.
Instructions: Prepare in journal form, without explanations, the end of year adjusting entries for the items listed for Greensboro Pest Control. (Show any calculations in the text boxes provided.)© BrainMass Inc. brainmass.com July 18, 2018, 9:00 am ad1c9bdddf
Please see the attached Word 97-2003 document.
Date Account/Description Debit Credit
This solution illustrates how to compute and make some of the most common adjusting entries in businesses, such as depreciation expense, supplies used, and insurance expense.