Question

CAN YOU HELP ME FILL THE FORM AND GIVE SOME EXPLANATION ABOUT IT TOO, THANK YOU SO MUCH FOR THE HELP

Exercise 4-6 Greenock Limited has the following information available for accruals for the year ended December 31, 2018. The company adjusts its accounts annually. 1. The December utility bill for $560 was unrecorded on December 31. Greenock paid the bill on January 21. 2. Greenock is open seven days a week and employees are paid a total of $3,500 every Monday for a seven-day (Monday-Sunday) workweek. December 31 is a Monday, so employees will have worked one day (Monday, December 31) that they have not been paid for by year end. Employees will be paid next on Monday, January 7. 3. Greenock signed a $45,700, 5% bank loan on November 1, 2017, due in two years. Interest is payable on the first day of each following month and was last paid on December 1. 4. Greenock receives a fee from Pizza Shop next door for all pizzas sold to customers using Greenock's facility. The amount owing for December is $490, which Pizza Shop will pay on January 4. (Hint: Use the Fees Earned account.) 5. Greenock rented some of its unused warehouse space to a client for $6,230 a month, payable the first day of the following month. It received the rent for the month of December on January 2. For each situation, prepare the adjusting entry required at December 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to o decimal places, e.g. 5,275.) No. Date Account Titles and Explanation Debit Credit 1. Dec. 31 2. 31 3. 31 4. 31 5. 31

Answer 1

Greenock Limited
Adjusting entries
Date	Account	Debit	Credit	Calculation
31-Dec	Utility expense	$           560
	Accounts Payable		$           560
	As utility is for Dec & unrecorded,as per accrual concept, we record expense in Dec
	You can either use Accounts Payable or Utility Payable account to record liability
31-Dec	Salaries expense	$           500		=$3,500 / 7 days
	Salaries Payable		$           500
	As only 1 day for Monday is due in Dec, we will record 1 day of salary as payable
31-Dec	Interest expense	$           190		=45,700*5%*1/12
	Interest Payable		$           190
	As interest was last paid on Dec 1, it is still payable for the month of Dec
31-Dec	Accounts Receivable	$           490
	Fees Earned		$           490
	As fees is owed for Dec, we have to record receivables & revenues in Dec
31-Dec	Rent Receivable	$        6,230
	Rent Revenue		$        6,230
	As rent is owed for Dec, we have to record receivables & revenues in Dec
Subsequent cash entries
21-Jan	Accounts Payable	$           560
	Cash		$           560
	Dec utility bill paid on Jan 21
7-Jan	Salaries Payable	$           500
	Salaries expense	$        3,000		=3,500-500
	Cash		$        3,500
	Employees are paid 3,500 on Jan 7 out of which 1 day salary of 500 is of Dec
	and rest 3,000 is for 6 days of Jan - which is salaries expense of Jan
1-Jan	Interest Payable	$           190
	Cash		$           190
	As interest was last paid on Dec 1, next interest is paid on Jan 1 for Dec interest
4-Jan	Cash	$           490
	Accounts Receivable		$           490
	Received cash for Dec receivables & revenues
2-Jan	Cash	$        6,230
	Rent Receivable		$        6,230
	Received cash for Dec receivables & revenues