Prepare the year-end adjusting journal entries at December 31. 1 answer below »

Marathon Magazine, Inc., has the following account balances, among others, in its trial balance at December 31 of the current year:  

Debits

Credits

Supplies on Hand

$3,720  

Prepaid Rent

7,200  

Unearned Subscription Fees  

$15,000

Subscriptions Revenue  

261,000

Salaries Expense

123,000  

The inventory of supplies on hand at December 31 amounts to USD 720.

The balance in the Prepaid Rent account is for a one-year period starting October 1 of the

current year.

One-third of the USD 15,000 balance in Unearned Subscription Fees has been earned. Since the last payday, the employees of the company have earned additional salaries in the amount of USD 5,430.

a. Prepare the year-end adjusting journal entries at December 31.

b. Open ledger accounts for each of the accounts involved, enter the balances as shown in the trial balance, post the adjusting journal entries, and calculate year-end balances.

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