Chateau Corporation has reported pre-tax income of $250,000 on December 31, 2021, before considering the transactions and events noted below. Prepare the adjusting entries needed at December 31, 2021 in order to correctly report Chateau's pre-tax income for the year. ( 1) On September 1, 2021, Chateau signed a one-year, $36,000 note payable with interest of 7%. The note, plus accrued interest, is due on August 31, 2022. 2) On May 31, 2021, Chateau entered into a contract to provide services to a customer for eighteen months, beginning on June 1. The customer paid the $27,000 fee in full on June 1, and Chateau recorded the payment as unearned revenue.
Chateau Corporation has reported pre-tax income of $250,000 on December 31, 2021, before considering the transactions and events noted below. Prepare the adjusting entries needed at December 31, 2021 in order to correctly report Chateau's pre-tax income for the year. ( 1) On September 1, 2021, Chateau signed a one-year, $36,000 note payable with interest of 7%. The note, plus accrued interest, is due on August 31, 2022. 2) On May 31, 2021, Chateau entered into a contract to provide services to a customer for eighteen months, beginning on June 1. The customer paid the $27,000 fee in full on June 1, and Chateau recorded the payment as unearned revenue.
Chapter16: Accounting Periods And Methods
Section: Chapter Questions
Problem 21CE
Related questions
Question
Chateau Corporation has reported pre-tax income of $250,000 on December 31, 2021, before considering the transactions and events noted below. Prepare the
1) On September 1, 2021, Chateau signed a one-year, $36,000 note payable with interest of 7%. The note, plus accrued interest, is due on August 31, 2022.
2) On May 31, 2021, Chateau entered into a contract to provide services to a customer for eighteen months, beginning on June 1. The customer paid the $27,000 fee in full on June 1, and Chateau recorded the payment as unearned revenue.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT