Question & Answer: Exercise 4-12 The ledger of Novak Corp. on July 31, 2017, includes the selected accounts below before adjusting entries have been prepared. Debit Credit Investment in Note…..

Please explain how I go about this step by step.

Exercise 4-12 The ledger of Novak Corp. on July 31, 2017, includes the selected accounts below before adjusting entries have been prepared. Debit Credit Investment in Note Receivable Supplies Prepaid Rent Buildings Accumulated Depreciation-Buildings Unearned Service Revenue $12,000 22,000 4,400 210,000 $150,000 11,300 An analysis of the companys accounts shows the following. I. The investment in the notes receivable earns interest at a rate of 6% per year. 2. Supplies on hand at the end of the month totaled $15,800 3. The balance in Prepaid Rent represents 4 months of rent costs. 4. Employees were owed $3,200 related to unpaid salaries and wages. 5. Depreciation on buildings is $5,400 per year. 6. During the month, the company satisfied obligations worth $4,650 related to the Unearned Services Revenue. 7. Unpaid maintenance and repairs costs were $2,300.

Don't use plagiarized sources. Get Your Custom Essay on
Question & Answer: Exercise 4-12 The ledger of Novak Corp. on July 31, 2017, includes the selected accounts below before adjusting entries have been prepared. Debit Credit Investment in Note…..
GET AN ESSAY WRITTEN FOR YOU FROM AS LOW AS $13/PAGE
Order Essay

Exercise 4-12 The ledger of Novak Corp. on July 31, 2017, includes the selected accounts below before adjusting entries have been prepared. Debit Credit Investment in Note Receivable Supplies Prepaid Rent Buildings Accumulated Depreciation-Buildings Unearned Service Revenue $12,000 22,000 4,400 210,000 $150,000 11,300 An analysis of the company’s accounts shows the following. I. The investment in the notes receivable earns interest at a rate of 6% per year. 2. Supplies on hand at the end of the month totaled $15,800 3. The balance in Prepaid Rent represents 4 months of rent costs. 4. Employees were owed $3,200 related to unpaid salaries and wages. 5. Depreciation on buildings is $5,400 per year. 6. During the month, the company satisfied obligations worth $4,650 related to the Unearned Services Revenue. 7. Unpaid maintenance and repairs costs were $2,300.

Expert Answer

 

1. The journal entries will be as follows

No. Date Account titles & Explanation Debit Credit
1 July.31 Interest Receivable 60
Interest income 60
(Interest income on note receivable accounted)
2 July.31 Supplies expense 6200
Supplies 6200
(Supplies expense for the month accounted)
3 July.31 Rent expense 1100
Prepaid rent 1100
(Rent expense for July accounted)
4 July.31 Salaries and wages expense 3200
Salaries and wages payable 3200
(Amount owed to employees for salaries and wages )
5 July.31 Depreciation expense – Building 450
Accumulated depreciation – Building 450
(Depreciation expense on building accounted)
6 July.31 Unearned service revenue 4650
Service revenue 4650
(Value of service obligations met during the month)
7 July.31 Maintenance and repairs expense 2300
Accrued expenses 2300
(Unpaid maintenance and repairs expenses accounted)
Notes:
1. Interest on notes receivable @6% for one month = (12,000*6%)/12 = 60
2. Balance of supplies account            = 22,000
     Supplies on hand                                 = 15,800
     Supplies expense(22,000 – 15,800)      =6,200
3.Prepaid rent of 4,400 is for four month. Rent for July = 4,400/4 = 1,100
4,5 and 6 are straight entries.

Grand Paper Writers
Order NOW For A 10% Discount!
Pages (550 words)
Approximate price: -

Our Advantages

Plagiarism Free Papers

All papers are written by the best professional writers to ensure 100% originality. We always provide plagiarism reports whenever we deliver completed papers.

Free Revisions

All papers by Grand Paper Writers are completed and submitted on time. This timely delivery of papers gives you time to go through the paper before the official deadline.

Title-page

As an additional service, we will provide a title page that precedes the contents of your paper. Here, you will provide your personal details.

Bibliography

We also ensure that we provide an extra page for the references or bibliographies following referencing rules.

Originality & Security

At Grandpaperwriters.com, we guarantee students for the provision of security and original work. All your personal information is handled with confidentiality and is not shared with third parties. Additionally, we ensure that we provide original content with accompanying plagiarism reports to show originality.

24/7 Customer Support

Our customer support team is always available 24/7 to provide instant responses to any queries raised by students.

Try it now!

Calculate the price of your order

We'll send you the first draft for approval by at
Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

Grandpaperwriters.com has the best professional essay writers for quality services.

Pricing

Flexible Pricing

Here, a Grandpaperwriters.com, we do not compromise on the time of our clients. We always deliver all completed papers on or before the deadlines.

Communication

Admission Help & Client-Writer Contact

Grandpaperwriters.com provides an interactive portal where students can communicate directly to their writers.

Deadlines

Paper Submission

Here, a Grandpaperwriters.com, we do not compromise on the time of our clients. We always deliver all completed papers on or before the deadlines.

Reviews

Customer Feedback

Grandpaperwriters.com appreciates feedback from our clients to help us improve the delivery of essay writing services. As such, we are constantly changing our policies to ensure maximum customer and writer satisfaction.