5. The company did not receive a utility bill for the month of Jan, 2020 in time toclose their books. The previous two bills for Nov and Dec 2019 were $37,000and $35,000, respectively. On Feb. 7, after the month of Jan was closed, theyreceived the bill in the amount of $36,200 payable in 15 days. Provide the J/Esfor Jan and February related to these transactions.6. On Dec. 1, 2019, the company received a check for $8,000 representing rent forthe next four months on a vacant building they owned. They booked it correctly.What J/E is required on Jan 31, 2020?

Adjustment journal entries are a type of journal entries made in the books of accounts to get…

Answered: J/E is required

Business

Accounting

J/E is required

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter3: Review Of A Company's Accounting System

Section: Chapter Questions

Problem 5RE: Garcia Company rents out a portion of its building to Jerry Company for 1,000 per month. On August...

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In December 2019, Swanstrom Inc. receives a cash payment of $3,500 for services performed in December 2019 and a cash payment of S4,500 for services to be performed in January 2020. Swanstrom also receives the December utility bill for S600 but does not pay this bill until 2020. For 2019, under the accrual basis of accounting, Swanstrom would recognize: a. $8,000 of revenue and $600 of expense. b. $8,000 of revenue and $0 of expense. c. $3,500 of revenue and $600 of expense. d. $3,500 Of revenue and $0 of expense.
Refer to RE6-8. On April 23, 2020, McKinncy Co. receives a check, from Mangold Corporation for 8,500. Prepare the journal entry for McKinncy to record the collection of the account previously written off.
The balance in Ashwood Companys accounts payable account at December 31, 2019, was 1,200,000 before any necessary year-end adjustment relating to the following: Goods were in transit from a vendor to Ashwood on December 31, 2019. The invoice cost was 85,000, and the goods were shipped FOB shipping point on December 29, 2019. The goods were received on January 2, 2020. Goods shipped FOB shipping point on December 20, 2019, from a vendor to Ashwood were lost in transit. The invoice cost was 40,000. On January 5, 2020, Ashwood filed a 40,000 claim against the common carrier. Goods shipped FOB destination on December 22, 2019, from a vendor to Ashwood were received on January 6, 2020. The invoice cost was 20,000, What amount should Ashwood report as accounts payable on its December 31,2019, balance sheet? a. 1,260,000 b. 1,285,000 c. 1,325,000 d. 1,345,000
Accrued Interest On May 1, the Garnett Corporation wanted to purchase a $200,000 piece of equipment, but Garnett was only able to furnish $75,000 of its own cash to purchase the equipment. Garnett borrowed the remainder of the $200,000 from the Peoples National Bank on a 3-year, 4% note. Required: If the company keeps its records on a calendar year, what adjusting entry should Garnett make on December 31?
Worksheet Victoria Company has the following account balances on December 31, 2019, prior to any adjustments: Additional adjustment information: (a) depreciation on buildings, 1,100; on equipment, 600; (b) bad debts expense, 240; (c) interest accumulated but not paid: on note payable, 50; on mortgage payable, 530 (this interest is due during the next accounting period); (d) insurance expired, 175; (e) salaries accrued but not paid 370; (f) rent was collected in advance and the performance obligation is now satisfied, 800; (g) office supplies cm hand at year-end, 230 (expensed when originally purchased earlier in the year); and (h) the income tax rate is 30% on current income and is payable in the first quarter of 2020. Required: 1. Transfer the account balances to a 10-column worksheet and prepare a trial balance. 2. Prepare the adjusting entries in the general journal and complete the worksheet. 3. Prepare the companys income statement, retained earnings statement, and balance sheet. 4. Prepare closing entries in the general journal.
Unearned Revenue Jennifers Landscaping Services signed a $400-per-month contract on November 1, 2019, to provide plant watering services for Lola Inc.s office buildings. Jennifers received 4 months' service fees in advance on signing the contract. Required: 1. Prepare Jennifers journal entry to record the cash receipt for the first 4 months. 2. Prepare Jennifers adjusting entry at December 31, 2019. 3. CONCEPTUAL CONNECTION How would the advance payment (account(s) and amounts(s)] be reported in Jennifers December 31, 2019, balance sheet? How would the advance payment [account(s) and amount(s)] be reported in Lolas December 31, 2019, balance sheet?
Garcia Company rents out a portion of its building to Jerry Company for 1,000 per month. On August 1, Jerry paid Garcia 12,000 for 1 year of rent in advance. Prepare journal entries for Garcia to record the collection ofrent and the related year-end adjusting entry on December 31.
The Gloria Dimen Company presented the following information pertaining to accounts that will need adjustments for its November 30, 2021, year-end financial statements: On October 1, 2021, Gloria Dimen Company paid P10,080 for 6 months' insurance premiums The balance in the ledger account Office Supplies amounted to P32,000. A count of the office supplies on November 30,2021 totaled P12,800. Gloria Dimen Company received P22,800 on November 1, 2021 from a customer for services to be rendered during the months of November, December, January, and February. Gloria Dimen acquired Office Equipment costing P352,800 on April 1, 2021. The equipment is expected to last 5 years after which it will be worthless. Assume that November 30, 2021 is a Friday and that Gloria Dimen pays its employees a total of P87,500 on Saturday.
The following transactions occurred during December 31, 2021, for the Microchip Company. On October 1, 2021, Microchip lent $90,000 to another company. A note was signed with principal and 8% interest to be paid on September 30, 2022. On November 1, 2021, the company paid its landlord $6,000 representing rent for the months of November through January. Prepaid rent was debited. On August 1, 2021, collected $12,000 in advance rent from another company that is renting a portion of Microchip’s factory. The $12,000 represents one year’s rent and the entire amount was credited to deferred rent revenue. Depreciation on office equipment is $4,500 for the year. Vacation pay for the year that had been earned by employees but not paid to them or recorded is $8,000. The company records vacation pay as salaries expense. Microchip began the year with $2,000 in its asset account, supplies. During the year, $6,500 in supplies were purchased and debited to supplies. At year-end, supplies costing…
On March 1, the Garner Corporation borrowed $75,000 from the First Bank of Midlothian on a 1-year, 5% note. Required: Hide If the company keeps its records on a calendar year, what adjusting entry should Garner make on December 31? Dec. 31 (Record accrual of interest expense)
In December 2019, Evergreen, a cleaning company, is performing $ 1,500 of service for customers who will not pay until February 2020. Record the entries when service is performed and cash is received Evergreen Cleaning Services Company has accrued a salary of $ 15,000 on 30 December 2019, payable on 2 January 2020.Record entries when salaries are accrued and salaries are paid On 15 December 2019, Evergreen Cleaning Services Company received a total of $ 2,000 worth of utility bills. The company will pay the bill on 2 January 2020. Record the entries for 15 December 2019 and 2 January 2020 On 31 December 2019, Evergreen Cleaning Services Company rendered $15,000 worth of services to a client. The customer will pay the amount on 15 January 2020. Make…
Jordan Company’s annual accounting year ends on December 31. It is now December 31, 2018, and all of the 2018 entries have been made except for the following: The company owes interest of $1,000 on a bank loan. The interest will be paid when the loan is repaid on September 30, 2019. No interest has been recorded. On September 1, 2018, Jordan collected six months’ rent of $9,300 on storage space. At that date, Jordan debited Cash and credited Deferred Revenue for $9,300. The company earned service revenue of $4,800 on a special job that was completed December 29, 2018. Collection will be made during January 2019. No entry has been recorded. On November 1, 2018, Jordan paid a one-year premium for property insurance of $6,000, for coverage starting on that date. Cash was credited and Prepaid Insurance was debited for this amount. At December 31, 2018, wages earned by employees but not yet paid totaled $2,600. The employees will be paid on the next payroll date, January 15, 2019.…