Carry out the adjustment journal entries on 31 December 20X1 (accounting year 01.01-31.12) of the Kapa company.On 1/2/20X1 the company received a bank loan of 60,000€ with a duration of one year at an annual interest rate of 5%. Capital and interest are payable at the end of the loan agreement.On 01/3/20X1 the company received the rents for the next twelve months amounting to 1000 €. The accountant entered the amount in an effective account.On 01/05/20X1 the company paid the annual insurance premiums of the means of transport amounting to 30000. The accountant entered the amount into a claim account.On 1/11/20X1 it granted a loan of €9000 to a supplier for seven months, at an annual interest rate of 7%. Interest will be collected on the date of repayment of the loan.On 1/12/20X1 it collects €3500 as a deposit for services that will be offered from 15/12/20X1 until 31/12/20X2. The accountant enters the event in an income account.

Answered: Image /qna-images/answer/6eb1f5ad-3149-44da-b440-a4c8767e386c.jpg

Answered: Carry out the adjustment journal…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 11EB: Whole Leaves wants to upgrade their equipment, and on January 24 the company takes out a loan from...

See similar textbooks

Related questions

Question

Carry out the adjustment journal entries on 31 December 20X1 (accounting year 01.01-31.12) of the Kapa company.

On 1/2/20X1 the company received a bank loan of 60,000€ with a duration of one year at an annual interest rate of 5%. Capital and interest are payable at the end of the loan agreement.
On 01/3/20X1 the company received the rents for the next twelve months amounting to 1000 €. The accountant entered the amount in an effective account.
On 01/05/20X1 the company paid the annual insurance premiums of the means of transport amounting to 30000. The accountant entered the amount into a claim account.
On 1/11/20X1 it granted a loan of €9000 to a supplier for seven months, at an annual interest rate of 7%. Interest will be collected on the date of repayment of the loan.
On 1/12/20X1 it collects €3500 as a deposit for services that will be offered from 15/12/20X1 until 31/12/20X2. The accountant enters the event in an income account.

Expert Solution

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions