On November 30 the end of the current fiscal year the foll

On November 30 the end of the current fiscal year the followinginformation is available to assist Allerton Companys accountants inmaking adjusting entries: Allertons Supplies accountshows a beginning balance of. Purchases during the year were. Theend-of-year inventory reveals supplies on hand of. The Prepaid Insurance account shows the following on November 30: July 1 $4200 October 1 $7272 The beginning balance represents the unexpired portion of aone-year policy purchased in September of the previous year. The July 1entry represents a new one-year policy and the October 1 entryrepresents additional coverage in the form of a three-year policy. Thefollowing table contains the cost and annual depreciation for buildingsand equipment all of which Allerton purchased before the current year: Building $298000 $16000 Equipment $374000 $40000 On October 1 the company completednegotiations with a client and accepted an advance offor services tobe performed monthly for a year. Thewas credited to Unearned ServicesRevenue. The company calculated that as of November 30 it had earnedon ancontract that would be completed and billed in January. Amongthe liabilities of the company is a note payable in the amount of. OnNovember 30 the accrued interest on this note amounted to. On Saturday December 2 the company which is on a six-day workweek will pay its regular employees their weekly wages of. OnNovember 29 the company completed negotiations and signed a contractto provide services to a new client at an annual rate of. REQUIRED 1. Prepare adjusting entries for each item listed above. 2. CONCEPTExplain how the conditions for revenue recognition are applied to transactionseandh.

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