The following information relates to the Crane Company at the end of 2020. The accounting period is the calendar year. 1. Employees are paid every Friday for the five-day week ending on that day. Salaries amount to $3,700 per week. The accounting period ends on a Tuesday. 2. A note for $6,200 was received from a customer in a sales transaction on April 1, 2020. The note matures in one year and bears 6% interest. 3. On September 1, 2020, Crane borrowed $12,300 cash by signing a note payable due in one year at 8% interest. Using the information given above, prepare the necessary adjusting entries at December 31, 2020.
The following information relates to the Crane Company at the end of 2020. The accounting period is the calendar year. 1. Employees are paid every Friday for the five-day week ending on that day. Salaries amount to $3,700 per week. The accounting period ends on a Tuesday. 2. A note for $6,200 was received from a customer in a sales transaction on April 1, 2020. The note matures in one year and bears 6% interest. 3. On September 1, 2020, Crane borrowed $12,300 cash by signing a note payable due in one year at 8% interest. Using the information given above, prepare the necessary adjusting entries at December 31, 2020.
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 7EB: McMasters Inc. specializes in BBQ accessories. In order for the company to expand its business, they...
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The following information relates to the Crane Company at the end of 2020. The accounting period is the calendar year.
| 1. | Employees are paid every Friday for the five-day week ending on that day. Salaries amount to $3,700 per week. The accounting period ends on a Tuesday. | |
| 2. | A note for $6,200 was received from a customer in a sales transaction on April 1, 2020. The note matures in one year and bears 6% interest. | |
| 3. | On September 1, 2020, Crane borrowed $12,300 cash by signing a note payable due in one year at 8% interest. |
Using the information given above, prepare the necessary
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