Greenberg Company | ||||
Adjusting journal entries on December 31,2021 | ||||
No | Date | Account Titles and Explanations | Debit | Credit |
1 | Dec. 31 | Advertising Expense | $4,658 | |
Prepaid Advertising | $4,658 | |||
(to record advertising expenses against the two contracts incurred in the year) | ||||
2 | Dec. 31 | Depreciation expense | $4,286 | |
Accumulated Depreciation - Vehicles | $4,286 | |||
(to record depreciation on the first vehicle) | ||||
2 | Dec. 31 | Depreciation expense | $2,500 | |
Accumulated Depreciation - Vehicles | $2,500 | |||
(to record depreciation on the second vehicle) | ||||
3 | Dec. 31 | Interest Expense | $2,302 | |
Accrued Expenses | $2,302 | |||
(to record the interest on 6.50% Notes payable for the year) | ||||
4 | Dec.31 | Salaries and Wages Expense | $5,250 | |
Accrued Expenses | $5,250 | |||
(to record salary and wages expense for the last week of December) | ||||
5 | Dec.31 | Unearned Revenue | $69,000 | |
Rent Revenue | $69,000 | |||
(to record the rent income earned during the year) |
Working Notes | ||||||
Advertising expenses | ||||||
Contract |
Total Prepaid Amount |
Period (in months) |
Monthly Expense |
Months expensed in 2021 |
Advertising Expense |
|
A650 | $5,000 | 12 | 417 | 8 | $3,333 | |
B974 | $10,600 | 24 | 442 | 3 | $1,325 | |
$15,600 | $4,658 | |||||
Depreciation | ||||||
Vehicle | Cost | Useful Life |
Annual Depreciation |
Date of Purchase |
Period Used (in months) |
Depreciation |
Vehicle -1 | $30,000 | 7 | $4,286 | 2-Jan-19 | 12 | $4,286 |
Vehicle -2 | $40,000 | 8 | $5,000 | 1-Jun-19 | 6 | $2,500 |
$70,000 | $9,286 | $6,786 | ||||
Interest on Notes payable | ||||||
Notes Payable |
Rate of Interest |
Annual Interest |
Date of issue |
Period in 2021 (months) |
Interest | |
$85,000 | 6.50% | $5,525 | 1-Aug-19 | 5 | $2,302 | |
Salaries and Wages | ||||||
No. of employees |
Work days | Weekly Salary | Days worked |
Salary for one emp. |
Total Salary |
|
6 | 6 | $750 | 5 | $625 | $3,750 | |
3 | 6 | $600 | 5 | $500 | $1,500 | |
$1,350 | $1,125 | $5,250 | ||||
Rent Revenue | ||||||
Monthly Rent |
No. of Tenants |
No. of months in 2021 |
Total Rent in 2021 |
|||
$4,000 | 6 | 2 | $48,000 | |||
$7,000 | 3 | 1 | $21,000 | |||
$11,000 | $69,000 |
Problem 3-08A A review of the ledger of Greenberg Company at December 31, 2021, produces the...
A review of the ledger of Cheyenne Corp. at December 31, 2022,
produces the following data pertaining to the preparation of annual
adjusting entries.
1.
Prepaid Insurance $17,328. The company has separate insurance
policies on its buildings and its motor vehicles. Policy B4564 on
the building was purchased on July 1, 2021, for $10,944. The policy
has a term of 3 years. Policy A2958 on the vehicles was purchased
on January 1, 2022, for $8,208. This policy has a term...
A review of the ledger of Skysong, Inc. at December 31, 2022, produces the following data pertaining to the preparation of annual adjusting entries. 1. Prepaid Insurance $13,376. The company has separate insurance policies on its buildings and its motor vehicles. Policy B4564 on the building was purchased on July 1, 2021, for $8,448. The policy has a term of 3 years. Policy A2958 on the vehicles was purchased on January 1, 2022, for $6,336. This policy has a term...
A review of the ledger of Marin Inc. at December 31 produces the
following data for the preparation of annual adjusting
entries:
1.
Salaries and Wages Payable, $0. There are 8 salaried employees.
6 employees receive a salary of $1,250 each per week, and 2
employees earn $680 each per week. Employees do not work weekends.
All employees worked two days after the last pay period and before
December 31.
2.
Unearned Rent Revenue, $443,320. The company began subleasing
condos...
A review of the ledger of Oriole Company at December 31, 2020, produces the following data pertaining to the preparation of annual adjusting entries. 1. Salaries and Wages Payable $0. There are eight employees. Salaries and wages are paid every Friday for the current week. Five employees receive $710 each per week, and three employees earn $520 each per week. December 31 is a Tuesday. Employees do not work weekends. All employees worked the last 2 days of December. 2....
ES Problem 3-3 A review of the ledger of Caria Company at December 31, 2017, produces the following data pertaining to the preparation of annual adjusting entries. 1. Salaries and Wages Payable $0. There are eight employees. Salaries and wages are paid every Friday for the current week. Five employees receive $810 each per week, and three employees earn $530 each per week. December 31 is a Tuesday. Employees do not work weekends. All employees worked the last 2 days...
P3.3 (LO 3) (Adjusting Entries) A review of the ledger of Baylor Company at December 31, 2020, produces the following data pertaining to the preparation of annual adjusting entries. 1. Salaries and Wages Payable $0. There are eight employees. Salaries and wages are paid every Friday for the current week. Five employees receive $700 each per week, and three employees earn $600 each per week. December 31 is a Tuesday. Employees do not work weekends. All employees worked the last...
P3-3 (L03) (Adjusting Entries) A review of the ledger of Baylor Company at December 31, 2017, produces the following data pertaining to the preparation of annual adjusting entries. 1. Salaries and Wages Payable $0. There are eight employees. Salaries and wages are paid every Friday for the current week. Five employees receive $700 each per week, and three employees earn $600 each per week. December 31 is a Tuesday. Employees do not work weekends. All employees worked the last 2...
P3.3 (L03) (Adjusting Entries) A review of the ledger of Baylor Company at December 31, 2020, produces the following data pertaining to the preparation of annual adjusting entries. 1. Salaries and Wages Payable $0. There are eight employees. Salaries and wages are paid every Friday for the current week. Five employees receive $700 each per week, and three employees earn $600 each per week. December 31 is a Tuesday. Employees do not work weekends. All employees worked the last 2...
A review of the ledger of Ivanhoe Company at December 31, 2017. produces these data pertaining to the preparation of annual adjusting entries 1. Prepaid Insurance $21,473. The company has separate insurance polides on its buildings and its motor vehicles Policy 14564 on the building was purchased on July 1, 2016 for $13,110. The policy has a term of 3 years. Policy A2958 on the vehicles was purchased on January 1, 2017, for $10.548. This policy has a term of...
A review of the ledger of Larkspur, Inc. at December 31 produces the following data for the preparation of annual adjusting entries: 1. Salaries and Wages Payable, $0. There are 8 salaried employees. 5 employees receive a salary of $1,250 each per week, and 3 employees earn $680 each per week. Employees do not work weekends. All employees worked two days after the last pay period and before December 31. Unearned Rent Revenue, $439,120. The company began leasing condos in...