Presented below is the December 31 trial balance of Cassini Studios.

(1)Prepare adjusting journal entries for the following items:
(a)Adjust the Allowance for Doubtful Accounts to 8 percent of the accounts receivable.
(b)Furniture and equipment is depreciated at 20 percent per year.
(c)Insurance expired during the year,$2,040.
(d)Interest accrued on notes payable,$2,688.
(e)Sales salaries earned but not paid,$1,920.
(f)Advertising paid in advance,$560.
(g)Office supplies on hand,$1,200,charged to Office Expense when purchased.
(2)Prepare closing entries for Cassini after the above adjusting entries have been made.Additional information shows the inventory on December 31 was $64,000.

Question

Presented below is the December 31 trial balance of Cassini Studios.
  
(1)Prepare adjusting journal entries for the following items:
(a)Adjust the Allowance for Doubtful Accounts to 8 percent of the accounts receivable.
(b)Furniture and equipment is depreciated at 20 percent per year.
(c)Insurance expired during the year,$2,040.
(d)Interest accrued on notes payable,$2,688.
(e)Sales salaries earned but not paid,$1,920.
(f)Advertising paid in advance,$560.
(g)Office supplies on hand,$1,200,charged to Office Expense when purchased.
(2)Prepare closing entries for Cassini after the above adjusting entries have been made.Additional information shows the inventory on December 31 was $64,000.

Quizplus · Accepted Answer

The Answer of Presented below is the December 31 trial balance of Cassini Studios.
  
(1)Prepare adjusting journal entries for the following items:
(a)Adjust the Allowance for Doubtful Accounts to 8 percent of the accounts receivable.
(b)Furniture and equipment is depreciated at 20 percent per year.
(c)Insurance expired during the year,$2,040.
(d)Interest accrued on notes payable,$2,688.
(e)Sales salaries earned but not paid,$1,920.
(f)Advertising paid in advance,$560.
(g)Office supplies on hand,$1,200,charged to Office Expense when purchased.
(2)Prepare closing entries for Cassini after the above adjusting entries have been made.Additional information shows the inventory on December 31 was $64,000.

Presented Below Is the December 31 Trial Balance of Cassini