Question

Question #1 (40 marks) Company A's business involves hosting sereal concerts per year. The company's year-end is December 31, 2001. The company records all prepaid costs as assets and all uneared revenues as liabilities and adjusts accounts ammually 1. Prepaid supplies amounted to $835 on December 31, 2020. On June 10, 2021, additional supplies were purchased for $1.990 cash On December 31, 2001, a physical count showed that prepaid supplies amounted to 5940 2. Purchased equipment on August 1, 2021, for $50 400 cash The equipment was estimated to have a useful life of 12 years. The company's policy is to employ the straight line method and depreciation is rounded to the nearest mouth 3. The company puts on eight concerts each on Season ticketssell for 5430 each and 235 sold in July for the upcoming 2001- 2022 son, which begins in September 2021 and ends in April 2012 (e concert per month) The company credited named Revenue for the full amount received 4. Every Wednesday, the total payroll is 55.520 for salaries cared during the presious workwerk Monday-Friday Salanes were hast paid on Wednesday, December 29. This vent December 31 falls tanday 5. The company also rents the space to local children schot, which uses the space for als twice a week at a rate of 570 per month. The choir was short of cash at the beginning of December and sent the company chaque for $540 on December 10, anda promise to pay the balance in January On Juary 10.3021, the company nevad a chesse for the balance on ing from December At this time theanuaryen was also paid 6 On June 1, 2001, the company bond S24 000 for its bank at all interest rate of 50% The principal and literes are lo be repaid on May 30 2022 9 Upon meiering in accounting second December 31 2001 the company noted but the belote bill for the month of December had not yet been remet A call to the phone con determined that the December telephone bill was $530 The bill was paid os January 12 2001

Answer 1

Solution a:

Journal entries to record the 2021 transactions:

Company A

General Journal

Sl No	Date	Account titles	Debit (in $)	Credit (in $)
	2021
1	June 10	Prepaid supplies	1,890
		Cash		1,890
		(To record purchase of supplies))
2	August 1	Equipment	50,400
		Cash		50,400
		(To record purchase of equipment)
3	July	Cash	96,750
		Unearned revenue		96,750
		(To record purchase of office equipments)
4	Dec 29	Salary expenses	5,520
		Cash		5,520
		(To record salaries paid)
5	Dec 10	Bank	540
		Unearned rent revenue		540
		(To record rent received in advance)
6	June 1	Bank	24,000
		Notes payable		24,000
		(To record borrowings from bank)
7		No entry

Solution b:

Year-end adjusting entries

Company A

General Journal

Sl No	Date	Account titles	Debit (in $)	Credit (in $)
	2021
1	Dec 31	Supplies expense	1,785
		Prepaid supplies		1,785
		(To record usage of supplies) ($835+$1,890-$940)
2	Dec 31	Depreciation expense	1,750
		Accumulated depreciation - Equipment		1,750
		(To record depreciation expense for 5 months)($50,400*5/12*1/12)
3	Dec 31	Unearned revenue	48,375
		Service revenue		48,375
		(To record revenue earned for 4 months till December 2021)($96750/8*4)
4	Dec 31	Salary expenses	5,520
		Salary payable		5,520
		(To record outstanding salaries for last week ending on December 31)
5	Dec 31	Unearned rent revenue	540
		Accounts receivable	200
		Rent revenue		740
		(To record rent revenue for December month)
6	Dec 31	Interest expense	700
		Interest payable		700
		(To record interest @ 5% p.a. for 7 months)($24,000*5%*7/12)
7	Dec 31	Utility expenses	530
		Accounts payable		530
		(To record outstanding telephone bill)
Add a comment Know the answer? Add Answer to: Question #1 (40 marks) Company A's business involves hosting sereal concerts per year. The company's year-end... Your Answer: Post as a guest Your Name: What's your source? Earn Coins Coins can be redeemed for fabulous gifts. Log In Sign Up Post as anonymous Post Your Answer Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free. Similar Homework Help Questions Question #1 (40 marks) Company A's business involves hosting several concerts per year. The company's year-end... Question #1 (40 marks) Company A's business involves hosting several concerts per year. The company's year-end is December 31, 2021. The company records all prepaid costs as assets and all uneamed revenues as liabilities and adjusts accounts annually. 1. Prepaid supplies amounted to $945 on December 31, 2020. On June 10, 2021, additional supplies were purchased for $1,955 cash On December 31, 2021, a physical count showed that prepaid supplies on hand amounted to $840. 2. Purchased equipment on August... Question #1 (40 marks) Company A's business involves hosting several concerts per year. The company's year-end... Question #1 (40 marks) Company A's business involves hosting several concerts per year. The company's year-end is December 31, 2021. The company records all prepaid costs as assets and all unearned revenues as liabilities and adjusts accounts annually. 1. Prepaid supplies amounted to $835 on December 31, 2020. On June 10, 2021, additional supplies were purchased for $1,890 cash. On December 31, 2021, a physical count showed that prepaid supplies amounted to $940. 2. Purchased equipment on August 1, 2021,... Question #1 (40 marks) Company A's business involves hosting several concerts per year. The company's year-end... Question #1 (40 marks) Company A's business involves hosting several concerts per year. The company's year-end is December 31, 2021. The company records all prepaid costs as assets and all unearned revenues as liabilities and adjusts accounts annually. 1. Prepaid supplies amounted to $835 on December 31, 2020. On June 10, 2021, additional supplies were purchased for $1,890 cash. On December 31, 2021, a physical count showed that prepaid supplies amounted to $940. 2. Purchased equipment on August 1, 2021,... Question #1 (40 marks) Company A's business involves hosting several concerts per year. The company's year-end... Question #1 (40 marks) Company A's business involves hosting several concerts per year. The company's year-end is December 31, 2021. The company records all prepaid costs as assets and all uneamed revenues as liabilities and adjusts accounts annually. 1. Prepaid supplies amounted to $945 on December 31, 2020. On June 10, 2021, additional supplies were purchased for $1,955 cash On December 31, 2021, a physical count showed that prepaid supplies on hand amounted to $840. 2. Purchased equipment on August... Question #1 (40 marks) Company A's business involves hosting several concerts per year. The company's year-end... Question #1 (40 marks) Company A's business involves hosting several concerts per year. The company's year-end is December 31, 2021. The company records all prepaid costs as assets and all uncared revenues as liabilities and adjusts accounts annually. 1. Prepaid supplies amounted to $945 on December 31, 2020. On June 10, 2021, additional supplies were purchased for $1,955 cash. On December 31, 2021, a physical count showed that prepaid supplies on hand amounted to $840. 2. Purchased equipment on August... Question #1 (40 marks) Company A's business involves hosting several concerts per year. The company's year-end... Question #1 (40 marks) Company A's business involves hosting several concerts per year. The company's year-end is December 31, 2021. The company records all prepaid costs as assets and all unearned revenues as liabilities and adjusts accounts annually. 1. Prepaid supplies amounted to $945 on December 31, 2020. On June 10, 2021, additional supplies were purchased for $1,955 cash. On December 31, 2021, a physical count showed that prepaid supplies on hand amounted to $840. 2. Purchased equipment on August... Question #1 (40 marles) Company A's business involves hosting several concerts per year. The company's year-end... Question #1 (40 marles) Company A's business involves hosting several concerts per year. The company's year-end in December 31, 2021. The company records all prepaid costs as assets and all unearned revenues as liabilities and adjusts accounts annually. 1. Prepaid supplies amounted to $835 on December 31, 2020. On June 10, 2021, additional supplies were purchased for $1,890 cash. On December 31, 2021, a physical count showed that prepaid supplies amounted to $940. 2. Purchased equipment on August 1, 2021,... Question I (40 marks) Company A's business involves hosting several concerts per year. The company's year... Question I (40 marks) Company A's business involves hosting several concerts per year. The company's year and is December 31, 2021. The company records all prepaid costs assets and all earned reveses a abilities and adjusts accounts annually 1. Prepaid supplies amounted to $945 on December 31, 2020. On June 10, 2021, additional supplies were purchased for $1.955 cash On December 31, 2021, a physical count showed that prepaid supplies on hand amounted to 5840. 2. Purchased equipment on August... Question 1 (40 marles) Company A's business involves hosting several concerts per year. The company's year-end... Question 1 (40 marles) Company A's business involves hosting several concerts per year. The company's year-end in December 31, 2021. The comptay records all prepaid costs as assets and all unearned revenues as liabilities and adjusts accounts amually. 1. Prepaid supplies amounted to $835 on December 31, 2020. On June 10, 2021, additional supplies were purchased for $1,890 cash. On December 31, 2021, a physical count showed that prepaid supplies amounted to $940. 2. Purchased equipment on August 1, 2021,... Company A's business involves hosting several concerts per year. The company's year-end is December 31, 2021.... Company A's business involves hosting several concerts per year. The company's year-end is December 31, 2021. The company records all prepaid costs as assets and all uneamed revenues as liabilities and adjusts accounts annually. 1. Prepaid supplies amounted to $945 on December 31, 2020. On June 10, 2021, additional supplies were purchased for $1,955 cash On December 31, 2021, a physical count showed that prepaid supplies on hand amounted to $840. 2. Purchased equipment on August 1, 2021, for $47,520... ADVERTISEMENT Free Homework Help App Download From Google Play Scan Your Homework to Get Instant Free Answers Need Online Homework Help? Ask a Question Get Answers For Free Most questions answered within 3 hours. ADVERTISEMENT Share Your Knowledge Post an Article +5 Coins Post an Answer +5 Coins Post a Question with Answer +5 Coins ADVERTISEMENT Active Questions Name the following coordination compounds using systematic nomenclature. 1. [Co(H2O)6]Cl2: 2. [Cr(NH3)6](NO3)3: 3. K4[Fe(CN)6]: 4. Na[Au(CN)4]:... asked 53 minutes ago Propose an efficient synthesis of 2-Bromo-5-nitrotoluene from benzene. Hint: 3 steps. Consider directing effects of substituents.... asked 3 hours ago This assignment will explore the impact of corporate decisions on a local versus a global perspective.... asked 2 hours ago Given the function below, F(w,x,y,z)= x’z+w’z’+w’y a) draw a logic diagram for an implementation which uses... asked 1 hour ago The sandwich maker of the EE-Cole-Eye Sandwich Truck was just fired (for a reason described below)... asked 1 hour ago Most political philosophers believe we have a duty to obey laws, even if the laws in... asked 2 hours ago Which of the following are common negotiation outcome mistakes? a. Leave money on the table b.... asked 2 hours ago Convert the following quantities: a) 0.819 atm to torr b) 512 mmHg to bar c) 11.2... asked 3 hours ago C ++ Implement cat command The purpose of this assignment is to provide practice using the... asked 3 hours ago we convert sugars into another form of stored potential energy. This is called? asked 4 hours ago The manufacturers of Oriental Spice Sauce are concerned that the sodium levels in their product vary... asked 4 hours ago PLEASE DON'T ANSWER IF YOU CAN'T ANSWER ALL OF THE QUESTIONS. I DESPERATELY NEED HELP Consider... asked 4 hours ago ADVERTISEMENT DMCA About Contact Terms of Use Privacy Policy Academic Honesty Policy Homework Answer Scanner App © 2013-2022 ZuoTi.Pro user contributions licensed under cc by-sa 4.0