29.Before Steel Frame Builders, Inc. can prepare its financial statements at year-end 2007, it must account for the two transactions below.
Record the adjustment that is called for by the data provided in spreadsheet format.
a.A $4,800 two-year insurance policy was purchased August 1, 2007 and recorded as Prepaid Insurance.
b.At year end, the ledger balance of Office Supplies Inventory is $2,400. A physical count of supplies, however, shows $1,900 worth on hand.
30.The Eastland Shopping Mall has the following information available at December 31, 2007 regarding two of its tenants.
a.The Bubbler Shoppe has paid its rent through October of 2007 but has not paid the $1,800 per month rent since. The unpaid rent has not yet been recorded at year-end.
b.Get Thin On Us has already paid its rent of $1,500 per month for the first two months of 2008 It is currently recorded in the rent revenue account.
Prepare the entry that should be made to Eastland Shopping Mall's accounting system for each of the items above. If no entry is necessary, indicate why this is so.
31.For each of the situations below, record the necessary adjusting entry. If no entry is necessary, explain why.
a.At year end, Purple Company had neither collected nor recorded $2,000 of rent revenue that had been earned by renting out part of the store basement.
b.On November 1, 2007, The Alchemist Bookstore received a tax bill of $3,000 for 2007 property taxes that are to be paid on March 1, 2008 This event was recorded by increasing Property Tax Expense and increasing Property Taxes Payable. Prepare any new entry necessary at December 31, 2007.