Prepare the following adjusting entry for December 31,2021: Record the December web hosting expense (use Advertising/promotional expense) and then make the entry recurring for the following eleven months. Dec 7th 2021 Recieved a bill from Webworks for a year of Web hosting for $600. So I created the bill for $600. Dec 21 2021 Pay all the bills due to .... and WebWorks, print later. SO I payed the bill of $600. Is it a Prepaid Advertising expense? How does the journal entry will look?
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Prepare the following
Dec 7th 2021 Recieved a bill from Webworks for a year of Web hosting for $600. So I created the bill for $600.
Dec 21 2021 Pay all the bills due to .... and WebWorks, print later. SO I payed the bill of $600.
Is it a Prepaid Advertising expense?
How does the
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- Each of the following independent situations relates to the recognition of revenue: a. On June 2, 2019, a customer books travel on an airline, paying 500 for a round-trip ticket that departs July 15, 2019, and returns July 20, 2019. In addition, once the round-trip ticket is used, the airline credits the passengers frequent-flier account for 500 miles. The airline determines that each frequent-flier point has a value of 0.01. b. On May 1, 2019, a retailer enters into a contract with a construction company. The construction company will build a new warehouse for the retailer at a price of 2 million. The retailer will make four equal payments to the construction company over the 1-year construction period, starting on May 1, 2019, and then every 4 months. The retailer can cancel construction at any time and will own any construction to date; however, it must pay the construction company for work done up to the cancellation date. The building is completed on April 30,2019. c. Morning Donut agrees to supply donuts and coffee on a daily basis to a local business. The contract starts on January 1, 2019, and runs for 1 year. Morning Donut charges 400 per week for the donuts and coffee. d. The Raleigh Knights sell four season tickets to a customer. The Knights play 10 regular season games, and the cost of one season ticket is 250. Required: For each situation, use the 5-step process to determine when revenue can be recognized. Determine (1) if a contract exists, (2) the performance obligations in the contract, (3) the transaction price in the contract, (4) how the transaction price is allocated to the performance obligations, and (5) when revenue is recognized.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.Reversing Entries On December 31, 2019, Kellams Company made the following adjusting entries for its annual accounting period: Required: Prepare whatever reversing entries are appropriate.
- 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.Mavis Enterprises received $28,000 from a customer on October 31, 2020 for work beginning immediately and to be completed by February 28, 2021. Mavis credited the cash to Unearned Revenue. As of December 31, 2020, 45% of the work had been completed. What adjusting entry must Mavis make at February 28, 2021?For each of the following items, write the journal entry first (if one is needed) to record the transactions; and then the adjusting entry, if any is required , for the end of the accounting year of Ron Car Rental Company on December 31, 2020.1. On December 1, borrowed $300,000 cash from Nation Bank by issuing a promissory note with an interest of 12% per annum payable in three months.2. On December 1, paid rental for six months beginning December 1, 2019 to May 31, 2020 at $3,000 per month.3. On December31, 2020, recieved telephone bills for the month December amounting to $5,600. The bill will be paid on January 20204. On Dec. 1, 2020, the company acquired a Computer worth $16,000 with 3 year useful life and $1,000 salvage value.
- Use the following information to provide the adjusting journal entry that Chipotle should have made on December 31, 2020which was the end of the fiscal year 2020. Assume that Chipotle makes adjusting entries once a year at fiscal year end. At the end of fiscal year 2020, Chipotle owed employees $203 million related to work completed (but not yet paid) during fiscal year 2020. What adjusting journal entry should Chipotle make on December 31, 2020 related to these wages owed to employees? Account Title Debit Credit Salary expense 203 Salary payable 203 At the end of fiscal year 2020, Chipotle calculates that it has $105 million in sales on account that have not yet been received or recorded. What adjusting journal entry should Chipotle make on December 31, 2020 related to the sales on account? Account Title Debit Credit Accounts receivable 105 Sales revenue 105 Chipotle receives a utility bill every four weeks…Prepare the adjusting entries needed as of December 2020. Write your solutions as description/explanation in each entry. The account names are given below. 1. The balance of the supplies account is a debit of P34,125. The inventory of supplies on December 31 amount s to P14,220. 2. The insurance expense account has a debit balance of P11,700 which represent a one-year premium paid in advance on August 1. 3. The balance of the prepaid rent account is a debit balance of P40,500 which represent 6-month rent received in advance on October 1. 4. Subscription income has a credit balance of P7,020 which represent a one-year subscription to a monthly magazine received in advance on May 31. 5. The advertising expense account includes a debit of P37,024 which represent the cost of advertising contract to publish the company ad in 52 consecutive issues of a weekly magazine. As of December 31, advertisements had appeared in 24 issues already. 6. The balance of the equipment account is a debit…The Mazzanti Wholesale Food Company’s fiscal year-end is June 30. The company issues quarterly financial statements requiring the company to prepare adjusting entries at the end of each quarter. Assuming all quarterly adjusting entries were properly recorded, prepare the necessary year-end adjusting entries at the end of June 30, 2021, for the following situations.1. On December 1, 2020, the company paid its annual fire insurance premium of $6,000 for the year beginning December 1 and debited prepaid insurance.2. On August 31, 2020, the company borrowed $80,000 from a local bank. The note requires principal and interest at 8% to be paid on August 31, 2021.3. Mazzanti owns a warehouse that it rents to another company. On January 1, 2021, Mazzanti collected $24,000 representing rent for the 2021 calendar year and credited deferred rent revenue.4. Depreciation on the office building is $20,000 for the fiscal year.5. Employee salaries for the month of June 2021 of $16,000 will be paid on…
- On 31 December, 2021, a customer has bought a 2-day pass for using the spa facilities on31 December, 2021 and January 1, 2022 for $2,000. The total amount for the 2-day pass willbe paid by the customer when departing on January 1, 2022. Prepare the necessary adjusting journal entries on 31 December 2021 to bring the financialrecords of Relax Spa Company up-to-date. Use the account titles given in the TrialBalance or create new accounts where appropriate. Show your workings. Explanationsare NOT required. If no adjusting entries are required, state “No entry” and name theaccounting principle applied.For each of the following items, write first the journal entry and then, the adjusting entry if any, for the accounting year of Car Mon Rental Company on December 31, 2020. 1.) On December 1, 2020, borrowed ₱300,000 cash from BDO bank by issuing promissory note with an interest rate of 12% per annum payable in 3 months. 2.) On December 1, paid rental for six months from December 1, 2020 to May 31, 2021 at ₱3,000 per month. 3.) On December 31, received telephone bills for the month of December amounting to ₱5,600. The bill will be paid on January 2021.Prepare the journal entries, with appropriate journal entry descriptions, for 2020, including any required year-end adjusting entries. The company prepares annual adjusting entries. - In the prior year TBTI had paid the entire year’s insurance policy upfront which expired as of December 31, 2020. The insurance premium for 2021 is $5,600. TBTI renewed and paid half the 2021 insurance premium on December 21, 2020. what would the journal entry be like?
