Selected accounts of Farm Company are shown below as of January 31 of the current year, before any adjusting entries have been made. Farm Company's accounting year begins on January 1.
Use the following information to prepare the necessary January 31 adjusting entries:
(1) Prepaid rent represents rent for January, February, March, and April.
(2) January 31 supplies on hand total $3,900.
(3) Office equipment is expected to last 12 years.
(4) Last month the firm received $18,000 of service fees in advance. One-half of these fees were earned during January.
(5) Accrued wages not recorded at January 31 are $2,850.

Question

Selected accounts of Farm Company are shown below as of January 31 of the current year, before any adjusting entries have been made. Farm Company's accounting year begins on January 1.
  Use the following information to prepare the necessary January 31 adjusting entries:
(1) Prepaid rent represents rent for January, February, March, and April.
(2) January 31 supplies on hand total $3,900.
(3) Office equipment is expected to last 12 years.
(4) Last month the firm received $18,000 of service fees in advance. One-half of these fees were earned during January.
(5) Accrued wages not recorded at January 31 are $2,850.

Quizplus · Accepted Answer

The Answer of Selected accounts of Farm Company are shown below as of January 31 of the current year, before any adjusting entries have been made. Farm Company's accounting year begins on January 1.
  Use the following information to prepare the necessary January 31 adjusting entries:
(1) Prepaid rent represents rent for January, February, March, and April.
(2) January 31 supplies on hand total $3,900.
(3) Office equipment is expected to last 12 years.
(4) Last month the firm received $18,000 of service fees in advance. One-half of these fees were earned during January.
(5) Accrued wages not recorded at January 31 are $2,850.

Selected Accounts of Farm Company Are Shown Below as of January