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P9-1 (Algo) Recording and Reporting Current Liabilities LO9-1 Vigeland Company completed the following transactions during Year 1. Vigeland's fiscal year ends on December 31. January 15 Purchased and paid for merchandise. The invoice amount was $15,900; assume a perpetual inventory system. April 1 Borrowed $604,000 from Summit Bank for general use; signed a 10-month, 7% annual interest-bearing note for the money. June 14 Received a $15,000 customer deposit for services to be performed in the future. July 15 Performed $3,350 of the services paid for on June 14. December 12 Received electric bill for $27,060. Vigeland plans to pay the bill in early January. December 31 Determined wages of $21,000 were earned but not yet paid on December 31 (disregard payroll taxes). Required: 1. Prepare journal entries for each of these transactions. 2. Prepare the adjusting entries required on December 31. Complete this question by entering your answers in the tabs below. Required 1 No Prepare the adjusting entries required on December 31. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. 1 Required 2 2 Date X Answer is complete but not entirely correct. December 31 December 31 Wage expense Wages payable Interest expense Interest payable General Journal 33 ✓ Debit 21,000✔ 4,228,000 X Credit 21,000 4,228,000 X

P9-1 (Algo) Recording and Reporting Current Liabilities LO9-1 Vigeland Company completed the following transactions during Year 1. Vigeland's fiscal year ends on December 31. January 15 Purchased and paid for merchandise. The invoice amount was $15,900; assume a perpetual inventory system. April 1 Borrowed $604,000 from Summit Bank for general use; signed a 10-month, 7% annual interest-bearing note for the money. June 14 Received a $15,000 customer deposit for services to be performed in the future. July 15 Performed $3,350 of the services paid for on June 14. December 12 Received electric bill for $27,060. Vigeland plans to pay the bill in early January. December 31 Determined wages of $21,000 were earned but not yet paid on December 31 (disregard payroll taxes). Required: 1. Prepare journal entries for each of these transactions. 2. Prepare the adjusting entries required on December 31. Complete this question by entering your answers in the tabs below. Required 1 No Prepare the adjusting entries required on December 31. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. 1 Required 2 2 Date X Answer is complete but not entirely correct. December 31 December 31 Wage expense Wages payable Interest expense Interest payable General Journal 33 ✓ Debit 21,000✔ 4,228,000 X Credit 21,000 4,228,000 X

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 94PSB
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P9-1 (Algo) Recording and Reporting Current Liabilities LO9-1 Vigeland Company completed the following transactions during Year 1. Vigeland's fiscal year ends on December 31. January 15 Purchased and paid for merchandise. The invoice amount was $15,900; assume a perpetual inventory system. April 1 Borrowed $604,000 from Summit Bank for general use; signed a 10-month, 7% annual interest-bearing note for the money. Received a $15,000 customer deposit for services to be performed in the future. June 14 July 15 Performed $3,350 of the services paid for on June 14. December 12 Received electric bill for $27,060. Vigeland plans to pay the bill in early January. December 31 Determined wages of $21,000 were earned but not yet paid on December 31 (disregard payroll taxes). Required: 1. Prepare journal tries for each of these transactions. 2. Prepare the adjusting entries required on December 31. Complete this question by entering your answers in the tabs below. Required 1 No Prepare the adjusting entries required on December 31. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. 1 Required 2 2 Date December 31 December 31 Wage expense Answer is complete but not entirely correct. Wages payable Interest expense Interest payable General Journal < Required 1 Required 2 > Debit 21,000 4,228,000 X Credit 21,000 4,228,000
Transcribed Image Text:P9-1 (Algo) Recording and Reporting Current Liabilities LO9-1 Vigeland Company completed the following transactions during Year 1. Vigeland's fiscal year ends on December 31. January 15 Purchased and paid for merchandise. The invoice amount was $15,900; assume a perpetual inventory system. April 1 Borrowed $604,000 from Summit Bank for general use; signed a 10-month, 7% annual interest-bearing note for the money. Received a $15,000 customer deposit for services to be performed in the future. June 14 July 15 Performed $3,350 of the services paid for on June 14. December 12 Received electric bill for $27,060. Vigeland plans to pay the bill in early January. December 31 Determined wages of $21,000 were earned but not yet paid on December 31 (disregard payroll taxes). Required: 1. Prepare journal tries for each of these transactions. 2. Prepare the adjusting entries required on December 31. Complete this question by entering your answers in the tabs below. Required 1 No Prepare the adjusting entries required on December 31. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. 1 Required 2 2 Date December 31 December 31 Wage expense Answer is complete but not entirely correct. Wages payable Interest expense Interest payable General Journal < Required 1 Required 2 > Debit 21,000 4,228,000 X Credit 21,000 4,228,000
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