Make the year end, 12-31-12, general journal adjustments for May-berry Mold Company.
Company only prepares adjustments and financial statements once a year on 12-31.
Here is this information to make the adjustments:
1. Supplies acct. balance is now 3,110 but an inventory shows on hand...... 875.00
2. On 12-1-12 we were paid 2,000 up front for a job we will finish sometime in 2013. On 12-31-12 this job is 85% completed. The orig. collection was credited to unearned rev.
3. For the year, Depreciation on Machinery is 3,200 and on Office Furniture 2,000
4. At 12-31-12 20% of a 15,000 service was completed but cannot be invoiced until March, 2013.
5. On 3-1-12 Company paid for a one yr. liab. insurance policy where coverage begins 3-1-12. Paid and Debited to the acct. Prepaid Insurance ........... 3,150.00
6. Company wages are 9,000 a week, paid weekly on Monday for the previous week worked.
Assume Dec 31, 2012 falls on a ................ Wednesday
7. During the year the company borrowed money from a bank. Interest will be paid 8-06-13 but accrued int @ 12-31-12 is ..... 275.00