Selected account balances from the December 31, 2015, trial balance of the Gracy Company are listed below: In addition, the following information is available:
· The cost of the ending inventory at December 31, 2015, is $7,500.
· $890 of salaries have accrued as of December 31.
· On March 30, Gracy purchased a 12-month insurance policy for $240. The purchase was debited to Prepaid Insurance.
· On December 1, the company paid 2 months' rent in advance. The $1500 payment was debited to Rent Expense.
· In December, a customer paid $1,000 in advance for merchandise that will be shipped by Gracy in 2016. The amount received was credited to Sales.
· Gracy estimates its bad debts to be 1% of sales after all adjustments).
· The income tax rate is 30%.
Gracy Company uses a periodic inventory system.
Required:
Using a general journal format, prepare the required adjusting entries.

Question

Selected account balances from the December 31, 2015, trial balance of the Gracy Company are listed below:  In addition, the following information is available:
· The cost of the ending inventory at December 31, 2015, is $7,500.
· $890 of salaries have accrued as of December 31.
· On March 30, Gracy purchased a 12-month insurance policy for $240. The purchase was debited to Prepaid Insurance.
· On December 1, the company paid 2 months' rent in advance. The $1500 payment was debited to Rent Expense.
· In December, a customer paid $1,000 in advance for merchandise that will be shipped by Gracy in 2016. The amount received was credited to Sales.
· Gracy estimates its bad debts to be 1% of sales after all adjustments).
· The income tax rate is 30%.
Gracy Company uses a periodic inventory system.
Required:
Using a general journal format, prepare the required adjusting entries.

Quizplus · Accepted Answer

The Answer of Selected account balances from the December 31, 2015, trial balance of the Gracy Company are listed below:  In addition, the following information is available:
· The cost of the ending inventory at December 31, 2015, is $7,500.
· $890 of salaries have accrued as of December 31.
· On March 30, Gracy purchased a 12-month insurance policy for $240. The purchase was debited to Prepaid Insurance.
· On December 1, the company paid 2 months' rent in advance. The $1500 payment was debited to Rent Expense.
· In December, a customer paid $1,000 in advance for merchandise that will be shipped by Gracy in 2016. The amount received was credited to Sales.
· Gracy estimates its bad debts to be 1% of sales after all adjustments).
· The income tax rate is 30%.
Gracy Company uses a periodic inventory system.
Required:
Using a general journal format, prepare the required adjusting entries.

Selected Account Balances from the December 31, 2015, Trial Balance