Cullumber Company has the following balances in selected accounts on December 31, 2021. Cullumber has a calendar year end.
Accounts Receivable | $ | 0 | |
Accumulated Depreciation—Equipment | 0 | ||
Equipment | 6,300 | ||
Interest Payable | 0 | ||
Notes Payable | 9,300 | ||
Prepaid Insurance | 2,244 | ||
Salaries Payable | 0 | ||
Supplies | 2,400 | ||
Unearned Revenue | 30,000 |
All the accounts have normal balances. The information below has
been gathered at December 31, 2021.
1. | Cullumber Company borrowed $9,300 by signing a 4%, one-year note on September 1, 2021. | |
2. | A count of supplies on December 31, 2021, indicates that supplies of $820 are on hand. | |
3. | Depreciation on the equipment for 2021 is $770. | |
4. | Cullumber Company paid $2,244 for 12 months of insurance coverage on June 1, 2021. | |
5. | On December 1, 2021, Cullumber collected $34,200 for consulting services to be performed evenly from December 1, 2021, through March 31, 2022. | |
6. | Cullumber performed consulting services for a client in December 2021. The client will be billed $3,000. Payment from the customer is expected on January 14, 2022. | |
7. | Cullumber Company pays its employees total salaries of $10,000 every Wednesday for the preceding five-day week (Monday through Friday). On Wednesday, January 5, 2022, employees were paid for the last five weekdays of 2021. |
Prepare adjusting entries for the seven items described above
(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.)
No. |
Date |
Account Titles and Explanation |
Debit |
Credit |
1. |
Dec. 31 |
|||
2. |
Dec. 31 |
|||
3. |
Dec. 31 |
|||
4. |
Dec. 31 |
|||
5. |
Dec. 31 |
|||
6. |
Dec. 31 |
|||
7. |
Dec. 31 |
|||
Prepare the appropriate subsequent cash entries. (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.)
No. |
Date |
Account Titles and Explanation |
Debit |
Credit |
1. |
Aug. 31 |
|||
6. |
Aug. 31Jan. 5Jan. 14 |
|||
7. |
Aug. 31Jan. 5Jan. 14 |
|||
No. | Date | Accounts Titles and Explanation | Debit | Credit | |
1 | Dec 31 | Interest Expense | $124 | ($9,300 x 4% x 4/12) | |
Interest Payable | $124 | ||||
2 | Dec 31 | Supplies Expense | $1,580 | ($2,400 - $820) | |
Supplies | $1,580 | ||||
3 | Dec 31 | Depreciation Expense | $770 | ||
Accumulated Depreciation | $770 | ||||
4 | Dec 31 | Insurance Expense | $1,309 | ($2,244 x 7/12) | |
Prepaid Insurance | $1,309 | ||||
5 | Dec 31 | Unearned Revenue | $8,550 | ($34,200 x 1/4) | |
Service Revenue | $8,550 | ||||
6 | Dec 31 | Accounts Receivable | $3,000 | ||
Service Revenue | $3,000 | ||||
7 | Dec 31 | Salaries Expense | $10,000 | ||
Salaries Payable | $10,000 | ||||
No. | Date | Accounts Titles and Explanation | Debit | Credit | |
1 | Aug 31 | Interest Payable | $124 | ||
Interest Expense | $248 | ||||
Notes Payable | $9,300 | ||||
Cash | $9,672 | ||||
6 | Jan 14 | Cash | $3,000 | ||
Accounts Receivable | $3,000 | ||||
7 | Jan 5 | Salaries Payable | $10,000 | ||
Cash | $10,000 | ||||
Cullumber Company has the following balances in selected accounts on December 31, 2021. Cullumber has a...
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