Adjusting Entries for Nelsen Company
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The following information for Nelsen Company is available on June 30, 2005, the end of a monthly accounting period. You are to prepare the necessary adjusting journal entries for Nelsen Company for the month of June for each situation given. Appropriate adjusting entries had been recorded in previous months. You may omit journal entry explanations.
1. Nelsen Company purchased a 2-year insurance policy on February 1, 2005 and debited Prepaid Insurance for $1,800.
2. On January 1, 2005, a tenant in an apartment building owned by Nelsen Company paid $5,700 which represents six months' rent in advance. The amount received was credited to the Unearned Rent account.
3. On June 1, 2005, the balance in the Office Supplies account was $200. During June, office supplies costing $480 were purchased. A physical count of office supplies at June 30 revealed that there was $240 still on hand.
4. On March 31, 2005, Nelsen Company purchased a delivery van for $42,000. It is estimated that the annual depreciation will be $6,000.
5. Nelsen Company has two employees who earn $80 and $120 per day, respectively. They are paid each Friday for a five-day work week that begins each Monday. Assume June 30 is a Wednesday in 2005.
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This solution is comprised of adjusting entries for the accounting transactions of Nelsen Company, formatted in an attached Word document.
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The following information for Nelsen Company is available on June 30, 2005, the end of a monthly accounting period. You are to prepare the necessary adjusting journal entries for Nelsen Company for the month of June for each situation given. Appropriate adjusting entries had been recorded in previous months. You may omit journal entry explanations.
1. Nelsen Company purchased a 2-year ...
Purchase this Solution
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