ACNT 1371 PRINT UPGRADE
10th Edition
ISBN: 9781260906554
Author: SPICELAND
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Prepare the journal entries, with appropriate journal entry descriptions, for 2020, including any required year-end adjusting entries. The company prepares annual adjusting entries.
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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?
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…
For each of the following independent situations, give the journal entries to adjust and correct the books at the end of 2020. In all situations you are to assume that the company in question closes its books on December 31 of each year and that reversing entries have been properly recorded where needed except as indicated.
ADJUSTING ENTRIES
The trial balance before adjustments on December 31, 2020 shows Prepaid Insurance at $1,500. The insurance coverage consists of one policy that expires on April 1 each year. The renewal premium paid on April 1 for one year in advance was identical to the premium paid the previous year.
Rent on unused space is received on May 1 each year for one year in advance. The Unearned Rent account is reported at $1,720 on the trial balance before adjustments on December 31, 2020. The rent received on May 1, 2020, was 10% higher than the rent received on May l of the previous year.…
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- The Mazzanti Wholesale Food Company’s fiscal year-end is June 30. The company issues quarterly financialstatements requiring the company to prepare adjusting entries at the end of each quarter. Assuming all quarterlyadjusting entries were properly recorded, prepare the necessary year-end adjusting entries at the end of June 30,2018, for the following situations.1. On December 1, 2017, the company paid its annual fire insurance premium of $6,000 for the year beginningDecember 1.arrow_forwardAllentown Services Inc. is preparing adjusting entries for the year ending December 31, 2019.The following data are available:a. Interest is owed at December 31, 2019, on a 6-month, 8% note. Allentown borrowed$120,000 from NBD on September 1, 2019.b. Allentown provides daily building maintenance services to Mack Trucks for a quarterly feeof $2,700 payable on the fifteenth of the month following the end of each quarter. No entrieshave been made for the services provided to Mack Trucks during the quarter ended December31, and the related bill will not be sent until January 15, 2020.c. At the beginning of 2019, the cost of office supplies on hand was $1,220. During 2019, officesupplies with a total cost of $6,480 were purchased from Office Depot and debited to officesupplies inventory. On December 31, 2019, Allentown determined the cost of office supplieson hand to be $970.d. On September 23, 2019, Allentown received a $7,650 payment from Bethlehem Steel for9 months of maintenance…arrow_forwardFor each of the following independent situations, give the journal entries to adjust and correct the books at the end of 2020. In all situations you are to assume that the company in question closes its books on December 31 of each year and that reversing entries have been properly recorded where needed except as indicated. ADJUSTING ENTRIES The trial balance before adjustments on December 31, 2020 shows Prepaid Insurance at $1,500. The insurance coverage consists of one policy that expires on April 1 each year. The renewal premium paid on April 1 for one year in advance was identical to the premium paid the previous year. Rent on unused space is received on May 1 each year for one year in advance. The Unearned Rent account is reported at $1,720 on the trial balance before adjustments on December 31, 2020. The rent received on May 1, 2020, was 10% higher than the rent received on May l of the previous year.…arrow_forward
- Under M. Sabio Company’s accounting system, all insurance premiums paid are debited to prepaid insurance. For interim financial reports, M Sabio makes monthly estimated charges to insurance expenses with credits to prepaid insurance. Additional information for the year ended December 31, 2019 are as follows: Prepaid Insurance at December 31, 2018 P120,500 Charges to insurance expense during 2019( including a year- End adjustment of P10,500) 437,500 Prepaid Insurance at December 31, 2019 110,000 What was the total amount of insurance premiums paid by M. Sabio during 2019? P448,000 P427,000 P327,500 P437,500arrow_forwardDemello & Associates records adjusting entries on an annual basis. The company has the following information available on accruals that must be recorded for the year ended December 31, 2021: 1. Demello has a $15,600, 8% note receivable with a customer. The customer pays the interest on a monthly basis on the first of the month. Assume the customer pays the correct amount each month. 2. Demello pays its employees a total of $6,500 every second Wednesday. Employees work a five-day week, Monday to Friday, and are paid for all statutory holidays. December 31, 2021, is a Friday. Employees were paid on Wednesday, December 29, 2021, up to the Friday of the prior week. Demello has a contract with a customer where it provides services prior to billing the customer. On December 31, 2021, this customer owed Demello $3,400. Demello billed the customer on January 7, 2022, and collected the full amount on 3. January 18, 2022. 4. Demello received the $480 December utility bill on January 10, 2022.…arrow_forwardDemello & Associates records adjusting entries on an annual basis. The company has the following information available on accruals that must be recorded for the year ended December 31, 2021: 1. Demello has a $ 14,400, 8% note receivable with a customer. The customer pays the interest on a monthly basis on the first of the month. Assume the customer pays the correct amount each month. 2. Demello pays its employees a total of $ 6,900 every second Wednesday. Employees work a five-day week, Monday to Friday, and are paid for all statutory holidays. December 31, 2021, is a Friday. Employees were paid on Wednesday, December 29, 2021, up to the Friday of the prior week. 3. Demello has a contract with a customer where it provides services prior to billing the customer. On December 31, 2021, this customer owed Demello $ 3,490. Demello billed the customer on January 7, 2022, and collected the full amount on January 18, 2022. 4. Demello received the $ 495 December utility…arrow_forward
- Blossom Industries received its 2024 annual property tax bill for $21,300 on May 1. The taxes covered the period January-December, were payable by June 30 and were paid on that date. Blossom has a December 31 fiscal year end and makes annual adjusting entries. (a) Prepare the journal entry to record the receipt of the property tax bill on May 1. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. List debit entry before credit entry.) Date Account Titles and Explanation Debit Credit May 1arrow_forwardDemello & Associates records adjusting entries on an annual basis. The company has the following information available on accruals that must be recorded for the year ended December 31, 2021: 1. Demello has a $ 14,400, 8% note receivable with a customer. The customer pays the interest on a monthly basis on the first of the month. Assume the customer pays the correct amount each month. 2. Demello pays its employees a total of $ 6,900 every second Wednesday. Employees work a five-day week, Monday to Friday, and are paid for all statutory holidays. December 31, 2021, is a Friday. Employees were paid on Wednesday, December 29, 2021, up to the Friday of the prior week. 3. Demello has a contract with a customer where it provides services prior to billing the customer. On December 31, 2021, this customer owed Demello $ 3,490. Demello billed the customer on January 7, 2022, and collected the full amount on January 18, 2022. 4. Demello received the $ 495 December utility…arrow_forwardDEXTER Company received a check for $18,000 on July 1, 2019 which represents a 6 month advance payment of rent on a building it rents to a client. Unearned Rent was credited for the full $18,000. Financial statements will be prepared yearly. Baden should make the following adjusting entry on December 31, 2019:arrow_forward
- The Mazzanti Wholesale Food Company’s fiscal year-end is June 30. The company issues quarterly financialstatements requiring the company to prepare adjusting entries at the end of each quarter. Assuming all quarterlyadjusting entries were properly recorded, prepare the necessary year-end adjusting entries at the end of June 30,2018, for the following situations. 5. Employee salaries and wages for the month of June 2018 of $16,000 will be paid on July 20, 2018.arrow_forwardMarques Company provides a one-year warranty on its products. The estimated rate of defective products returned during the warranty period is 3% of sales. Sales for the month of June 2022 were $420,000. Marques adjusts its accounts monthly. A customer received warranty repairs requiring $380 of parts and $290 of labour during the month of July 2022. Instructions: a) Prepare the adjusting journal entry on June 30, 2022 (the end of the first month of the current fiscal year) to record the accrued product warranty. b) Prepare the journal entry to record the warranty work completed during July 2022 on July 31, 2022.arrow_forwardThe 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. Assume all quarterly adjusting entries were properly recorded. On December 1, 2020, the company paid its annual fire insurance premium of $5,200 for the year beginning December 1 and debited prepaid insurance. On August 31, 2020, the company borrowed $85,000 from a local bank. The note requires principal and interest at 8% to be paid on August 31, 2021. Mazzanti owns a warehouse that it rents to another company. On January 1, 2021, Mazzanti collected $22,400 representing rent for the 2021 calendar year and credited deferred rent revenue. Depreciation on the office building is $16,800 for the fiscal year. Employee salaries for the month of June 2021 $17,500 will be paid on July 20, 2021.arrow_forward
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