General Journal Assignment
Adjusting Entries The following selected accounts appear in the Birch Company's unadjusted trial balance as of December 31, the end of the fiscal year (all accounts have normal balances) Prepaid Maintenance 52,700 Commission Fees Earned $86.000 9400 Rent Expense 10,800 Supplies Unearned Commission Fees 9.000 Required Prepare the necessary adjusting entries in the general journal as of December 31, assuming the following 1.
On September 1, the company entered into a prepaid equipment maintenance contract. Birch Company paid $2,700 to cover maintenance service for six months, beginning September 1. The payment was debited to Prepaid Maintenance. 2. Supplies on hand at December 31 are $2,900. 3. Unearned commission fees at December 31 are s4,000. 4. Commission fees earned but not yet billed on December 31 are $3,500 (Note: Debit Fees Receivable.) 5. Birch Company's lease calls for rent of $900 per month payable on the first of each month, plus an annual amount equal to 2 % of annual commissions earned. This additional rent is payable on January 10 of the following year. (Note: Be sure to use the adjusted amount of commissions earned in computing the additional rent.) General Journal Description Ref. Debit Credit Date 0 S (1) S Dec 31 0 0 # To record four months maintenance expense. 0 31 (2) 0 To record the cost of supplies used. 31 (3) 0 0 To transfer fees earned from unearned fees. 31 C 0 # (4) 0 To record fees earned but not yet billed. 31 (5) 0 0 0 To record additional 2012 rent. Please answer all parts of the question. .
