I would like to check my work against someone else. I need adjusting entries for each of the following:
E. The prepaid insurance applicable to the administrative and office operations is $721.00.
F. Accrue the interest on the $13,280, 15%, 60-day note, received on June 24, and the $38,000, 8%, 120-day note received on May 31. Use the 360-day ‘bankers year' to calculate the accrued interest receivable.
G. Straight-line depreciation of office equipment is $1,830 for the quarter. Office equipment is depreciated quarterly; not monthly.
H. Ramblewood Manufacturing has two trucks. There is no depreciation on the new truck used for manufacturing related functions acquired on June 22. The second truck was acquired at a cost of $26,800 and is used for delivery of finished products. It has a salvage value of $3,800 and is expected to be driven for 100,000 miles. Record the depreciation on the second truck on the basis of miles-driven (units of production). The truck was driven for 5,800 miles during the quarter.
I. Additional accrued income tax expense for the quarter is $4,600.00.