Part 3. Adjusting entries Please help Cheeky Cheeses, Inc. prepare adjusting jou

Question

Part 3. Adjusting entries Please help Cheeky Cheeses, Inc. prepare adjusting journal entries that need to be recorded on December 31, 2018 based on below information. Cheeky Cheeses purchased a delivery truck on January 1, 2018 for $20,000. The truck is expected to last 4 years with no residual value. Cheeky Cheeses borrowed a four-year note of $60,000 on April 1, 2017. The note requires the company to pay 1% interest every six months. Cheeky Cheeses has made a. b. al every interest payment on time. Cheeky Cheeses prepaid a two-year rent of $36,000 for a new factory on October 1, 2018 and immediately started using the factory Cheeky Cheeses had $1,500 in supplies on December 31, 2017. The company bought $9,000 of supplies during 2018. Based on a physical count of supplies on December 31, 2018, the company still has $3,000 in supplies. c. d. e. Cheeky Cheeses pays employee wages with two equal cash payments on the 1st and 16h of every month. The monthly wages expense is $12,000. (Please put the question number (a, b., c., d., e.) in the # column.)

Explanation / Answer

Date Account Debit credit Dec31 salaries and wage expense 6000 salaries an wage payable 6000 [Being salary accrued for 16 dec -31 dec to be paid on 1 jan of next year 12000*1/2 = 6000]

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