How to calculate adjusting entries for adjusted trial balance
Not what you're looking for?
The following information is available for BlueStar Company for the month ending December 31, 2006:
1. Supplies used during the month totaled $1,596.
2. BlueStar paid the annual premium of $6,000 on their insurance on December 1.
3. BlueStar performed services valued at $14,000 during the last week of December. Their clients have not yet been billed.
4. BlueStar pays their staff for a 5-day workweek each Friday. The weekly payroll totals $3,450. December 31 falls on a Wednesday.
5. BlueStar has a 5-year note payable to SouthTrust Bank for $40,000 due on July 31, 2009. Interest is payable annually on July 31 and is accrued monthly at the annual rate of 7.5%.
Students must include supporting calculations for the adjusted balance amounts for all of the accounts below. Use the information to determine the balance to be reported on the December 31 financial statements for the following accounts:
Purchase this Solution
Solution Summary
The solution explains how adjusting entries are to be calculated given the initial details.
Solution Preview
Please see the attached file
The following information is available for BlueStar Company for the month ending December 31, 2006:
1. Supplies used during the month totaled $1,596.
2. BlueStar paid the annual premium of $6,000 on their insurance on December 1.
3. BlueStar performed services valued at $14,000 during the last week of December. Their clients have not yet been billed.
4. BlueStar pays their staff for a 5-day workweek each Friday. The weekly payroll totals $3,450. ...
Purchase this Solution
Free BrainMass Quizzes
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.
Motivation
This tests some key elements of major motivation theories.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce