Sheffield Limited has the following information available for accruals for the year ended December 31, 2021. The company adjusts its accounts annually. 1. 2. 3. 4. 5. The December utility bill for $419 was unrecorded on December 31. Sheffield paid the bill on January 21. Sheffield is open seven days a week and employees are paid a total of $3,780 every Monday for a seven-day (Monday- Sunday) workweek. December 31 is a Friday, so employees will have workedfive days (Monday, December 27 to Friday, December 31) that they have not been paid for by yearend. Employees will be paid next on Monday, January 3. Sheffield signed a $41,900, 5% bank loan on November 1, 2020, due in two years. Interest is payable on the first day of each following month and was last paid on December 1. A Sheffield receives a fee from Pizza Shop next door for all pizzas sold to customers using Sheffield's facility. The amount owing for December is $310, which Pizza Shop will pay on January 4. (Hint: Use the Fees Earned account.) Sheffield rented some of its unused warehouse space to a client for $6,400 a month, payable the first day of the following month. It received the rent for the month of December on January 2.
Sheffield Limited has the following information available for accruals for the year ended December 31, 2021. The company adjusts its accounts annually. 1. 2. 3. 4. 5. The December utility bill for $419 was unrecorded on December 31. Sheffield paid the bill on January 21. Sheffield is open seven days a week and employees are paid a total of $3,780 every Monday for a seven-day (Monday- Sunday) workweek. December 31 is a Friday, so employees will have workedfive days (Monday, December 27 to Friday, December 31) that they have not been paid for by yearend. Employees will be paid next on Monday, January 3. Sheffield signed a $41,900, 5% bank loan on November 1, 2020, due in two years. Interest is payable on the first day of each following month and was last paid on December 1. A Sheffield receives a fee from Pizza Shop next door for all pizzas sold to customers using Sheffield's facility. The amount owing for December is $310, which Pizza Shop will pay on January 4. (Hint: Use the Fees Earned account.) Sheffield rented some of its unused warehouse space to a client for $6,400 a month, payable the first day of the following month. It received the rent for the month of December on January 2.
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter21: Accounting For Accruals, Deferrals, And Reversing Entries
Section: Chapter Questions
Problem 1MP
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Transcribed Image Text:Sheffield Limited has the following information available for accruals for the year ended December 31, 2021. The company adjusts its
accounts annually.
1.
2.
3.
4.
5.
to search
The December utility bill for $419 was unrecorded on December 31. Sheffield paid the bill on January 21.
Sheffield is open seven days a week and employees are paid a total of $3,780 every Monday for a seven-day (Monday-
Sunday) workweek. December 31 is a Friday, so employees will have workedfive days (Monday, December 27 to Friday,
December 31) that they have not been paid for by yearend. Employees will be paid next on Monday, January 3.
Sheffield signed a $41,900, 5% bank loan on November 1, 2020, due in two years. Interest is payable on the first day of each
following month and was last paid on December 1.
A
Sheffield receives a fee from Pizza Shop next door for all pizzas sold to customers using Sheffield's facility. The amount owing
for December is $310, which Pizza Shop will pay on January 4. (Hint: Use the Fees Earned account.)
Sheffield rented some of its unused warehouse space to a client for $6,400 a month, payable the first day of the following
month. It received the rent for the month of December on January 2.
II
19°C Partly cloudy
E
ENG
10:5
8/1
Transcribed Image Text:No. Date Account Titles and Explanation
Dec.
31
1.
2.
3.
4.
31
31
31
31
Utilities Expense
Accounts Payable
Salaries Expense
Salaries Payable
Interest Expense
Interest Payable
Accounts Receivable
Fees Earned
Accounts Receivable
II
Debit
419
175
310
6400
4.67/5 E
Credit
111
419
11004
175
310
19°C Partly cloudy
;
AGRE ENG
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