Your business uses a calendar yeal accounting period. The following were among your transactions during the year: Require (a): Your business issued a 14%, $300,000, one-year, note payable on April 1, 20x1. Both the principal and interest on the note are due at maturity date. What is the adjusting entry on December 31, 20x1? Require (b): Your business received billing of $32,000 on December 29 20x1 for utilities used in December 20x1. Your business par the bill on January 4, 20x2. What is the adjusting entry December 31, 20x1?
Your business uses a calendar yeal accounting period. The following were among your transactions during the year: Require (a): Your business issued a 14%, $300,000, one-year, note payable on April 1, 20x1. Both the principal and interest on the note are due at maturity date. What is the adjusting entry on December 31, 20x1? Require (b): Your business received billing of $32,000 on December 29 20x1 for utilities used in December 20x1. Your business par the bill on January 4, 20x2. What is the adjusting entry December 31, 20x1?
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter4: Income Measurement And Accrual Accounting
Section: Chapter Questions
Problem 4.10E
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Your business uses a calendar yeal accounting period. The following were among your transactions during the year:
Require (a): Your business issued a 14%, $300,000, one-year, note payable on April 1, 20x1. Both the principal and interest on the note are due at maturity date. What is the adjusting entry on December 31, 20x1?
Require (b): Your business received billing of $32,000 on December 29 20x1 for utilities used in December 20x1. Your business par the bill on January 4, 20x2. What is the adjusting entry December 31, 20x1?
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