1.prepare adjusting entries for December 31st 2.prepare journal entries to recor
ID: 2341306 • Letter: 1
Question
1.prepare adjusting entries for December 31st 2.prepare journal entries to record cash transaction in 2019.Greenock Limited has the following information available for accruals for the year ended December 31, 2018. The company adjusts its annually The December utility bill or $ 500 was unrecorded on December 31. Greenock paid the bill on Ja 2. Greenock is open seven days a week and employees are paild a total of $ 3,500 every Monday for a seven-day (Monday-Sunday) workweek December 31 is a Monday, so employees will Employees will be paid next on Monday, January 7 Greenock signed a $45,800, 8% bank loan on November 1. they have not been paid for by year end 3. and was last paid on December 1 Greenock recelves a fee from Pizza Shop next door for all plzzas sold to customers using Greenock's facility.The amount owing for December is $ 320, which Pizza Shop will pay on January 4. (Hint. Use the Fees Earned account) S. Greenock rented some of its unused warehouse space to acllent for $ 6.360 a month, payable the first day of the following month. It recelved the rent for the month of December on January 2
Explanation / Answer
(1). Adjusting entries at December 31;
No.
Date
Account Titel & Explanation
Debit
Credit
1.
2018
Dec. 31
Utilities expense
$500
Accounts payable
$500
(For recording unrecorded utility bill)
2.
Dec. 31
Wages & Salaries expense ($3500 / 7)
$500
Wages & Salries payable
$500
(Adjusting entry for wages and salary expense)
3.
Dec. 31
Interest expense ($45800 *.08) / 12
$305.33
Interest payable
$305.33
(Adjusting entry for interest expense)
4.
Dec. 31
Accounts Receivable
$320
Fees Earned
$320
(Adjusting entry for earned revenue)
5.
Dec. 31
Accounts Receivable
$6360
Rent Revenue
$6360
(Adjusting entry for warehouse rent income)
(2). Journal entries to record cash transaction in 2019;
No.
Date
Account Titel & Explanation
Debit
Credit
1.
2019
Jan. 21
Accounts payable
$500
Cash
$500
(For recording payment of utility bill)
2.
Jan. 7
Wages & Salaries Payable
$500
Cash
$500
(For recording wages & salaries expenses)
3.
Jan. 1
Interest payable
$305.33
Cash
$305.33
(For recording payment of interest expense)
4.
Jan. 4
Cash
$320
Accounts receivable
$320
(For recording receipt of amount from receivables)
5.
Jan. 2
Cash
$6360
Accounts receivable
$6360
(For recording receipt of warehouse rent)
No.
Date
Account Titel & Explanation
Debit
Credit
1.
2018
Dec. 31
Utilities expense
$500
Accounts payable
$500
(For recording unrecorded utility bill)
2.
Dec. 31
Wages & Salaries expense ($3500 / 7)
$500
Wages & Salries payable
$500
(Adjusting entry for wages and salary expense)
3.
Dec. 31
Interest expense ($45800 *.08) / 12
$305.33
Interest payable
$305.33
(Adjusting entry for interest expense)
4.
Dec. 31
Accounts Receivable
$320
Fees Earned
$320
(Adjusting entry for earned revenue)
5.
Dec. 31
Accounts Receivable
$6360
Rent Revenue
$6360
(Adjusting entry for warehouse rent income)
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