Question

Sandhill Paintball records adjusting entries on an annual basis. The company has the following information available on accruals that must be recorded for the year ended June 30, 2021. 1. Sandhill Paintball has a note payable with its bank for $46,800. Interest is payable on a monthly basis on the first of the month 2. Sandhill Paintball is open seven days a week and employees are paid a total of $4,060 every Monday for a seven-day Monday-Sunday workweek, June 30 2021, is a Wednesday so employees will have worked three days (Monday-Wednesday) before the year end that they have not been paid for as at June 30. Employees will be paid next on Monday, July 5, 2021. 3. Sandhill Paintball receives a commission from Pizza Shop next door for all pizzas sold to customers using the Sandhill Paintball facility. The amount owing for June is $590, which Pizza Shop will pay on July 7.2021. 4. The June utility bill for $375 was unrecorded on June 30. Sandhill Paintball paid the bill on July 9, 2021 5. Sandhill Paintball sold some equipment on June 1, 2021, in exchange for a $9,600,6% note receivable. The principal and interest are due on September 1.2021 For each of the above items, prepare the adjusting entry required at June 30, 2021. (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 for the amounts.) Account Titles and Explanation Debit No. 1. Date June 30 Credit 2 June 30 3. June 30 4. June 30

Answer 1

Journal entry

Date	account and explanation	Debit	Credit
June 30	Interest expense (46800*5%*1/12)	195
	Interest payable		195
June 30	Salaries and wages expense	1740
	Salaries and wages payable (4060/7*3)		1740
June 30	Account receivable	590
	Revenue earned		590
June 30	Utilities expense	375
	Utilities payable		375
June 30	Interest receivable (9600*6%*1/12)	48
	Interest revenue		48