Below are transactions for Wolverine Company during 2021.On December 1, 2021, Wolverine receives $4,000 cash from a company that is renting office space from Wolverine. The payment, representing rent for December and January, is credited to Deferred Revenue.Wolverine purchases a one-year property insurance policy on July 1, 2021, for $13,200. The payment is debited to Prepaid Insurance for the entire amount.Employee salaries of $3,000 for the month of December will be paid in early January 2022.On November 1, 2021, the company borrows $15,000 from a bank. The loan requires principal and interest at 10% to be paid on October 30, 2022.Office supplies at the beginning of 2021 total $1,000. On August 15, Wolverine purchases an additional $3,400 of office supplies, debiting the Supplies account. By the end of the year, $500 of office supplies remains.Required:Record the necessary adjusting entries at December 31, 2021, for Wolverine Company. You do not need to record transactions made during the year. Assume that no financial statements were prepared during the year and no adjusting entries were recorded. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.)
Solved
Show answers
More tips
- F Food and Cooking 10 Reasons Why You Should Avoid Giving Re-Gifts: An Informative Guide...
- S Sport How to wrap boxing hand wraps? Everything you need to know!...
- A Animals and plants 5 Tips for Taking Care of Yews to Keep Them Green and Beautiful...
- H Health and Medicine How to Calm Your Nerves? Expert Tips That Actually Work...
- O Other What is a Disk Emulsifier and How Does it Work?...
- S Sport How to Pump Your Chest Muscle? Secrets of Training...
- C Computers and Internet How to Get Rid of 3pic Infector: Everything You Need to Know...
- S Style and Beauty How to Grow Hair Faster: Real Methods and Advice...
- C Computers and Internet How to Top Up Your Skype Account Without Losing Money?...
- C Computers and Internet How to Get Rid of Spam in ICQ?...
Answers on questions: Business
- B Business What information do you believe is needed in order to create a budget?...
- P Physics What is the mass of a dog house on Jupiter if the house weighs 1,040 N and the acceleration due to gravity on Jupiter is 26 m/s?? Your A. 1.040 kg B. 0.65 kg C. 40 kg D. 1.5 kg...
- M Mathematics PLZ HELP ASAP Given cos 0 = 4√2/ 7 find sin 0...
- M Mathematics Please answer correctly...
- P Physics Which list shows the correct order of processes that occur before and during ovulation? egg released from ovary Right arrow. hormones send signal Right arrow. egg travels to fallopian...
- M Mathematics Plz HELP BRAINlEST for true answer!!...
- M Mathematics Tho is how triangle looks...
- P Physics One example of angular momentum is someone cars turning tight corners. For a fun example, let s consider a Formula 1 race car on the Monaco Grand Prix circuit (just a fancy name for...
- M Mathematics At Kennedy High School, the probability of a student playing in the band is 0.15. The probability of a student playing in the band and playing on the football team is 0.03. Given...
- M Mathematics Stacy has 3 collector’s cards. She receives 1 more card each week that she volunteers at the student center. Let x = the number of weeks. Let y = the number of cards....
Ответ:
Please see explanation column for answers
Explanation:
Journal for December 2021
A)To record advance in rent from customers
Date Account. Debit Credit
Dec 31 Deferred
Revenue. $2,000
Rent Revenue. $2,000
Reason--->The rent is paid for 2 months in advance ie January and December, but since the adjusting entry is for only December, we will divide .$4000 / 2=
$2,000 as Rent revenue earned.
B) To record Insurance expense
Date Account. Debit Credit
Dec 31 Insurance
Expense. $6,600
Prepaid insurance $6,600
Reason-- The company paid in advance but we consider only from July to December which is 6months as we are only preparing entry for December
Insurance Expense =13,200x 6/12=
$6600
C) To record accrued Salary
Date Account. Debit Credit
Dec 31 Salary
Expense. $3000
Salary payable $3,000
But will be paid next year.
D) To record accrued interest on loan borriwed
Date Account. Debit Credit
Dec 31 Interest
Expense. $250
Interest payable $250
Calculation
Interest =PxRxT=15,000 X 10%x 2/12=$250
Accrued interest from date of loan which is November to December the date of journal entry will be considered
E)To record supply expense for the year
Date Account. Debit Credit
Dec 31 Supply
Expense. $3,900
Supply $3,900
Calculation=
Supply expense=Supply at the onset +purchased supply - used supply.
1000 +3400 -500=$3,900
Ответ: