Accounting Question:Adjusting Entries
Accounting
Question:
The charter of the corporation authorized 500,000 shares of $5 par common stock, and 50,000 shares of $40 par, 3%, preferred stock. As of January 1, 2014, there were 20,000 shares of common stock issued and outstanding and 4,000 shares of preferred stock issued and outstanding. I am having trouble with the adjusting balance sheet can someone help me? Adjusting Entries (1) The employees’ accrued vacation pay at the end of the year was $26,000. (2) Record depreciation on the equipment purchased on February 1, using the straight-line method. The equipment has an estimated 9-year useful life and an estimated residual value of $13,520. (3) Record insurance expired on the policy purchased January 31. (4) Record the adjusting entry for the interest accrued and the amortization of the premium on the bonds payable.
