Carry out the adjustment journal entries on 31 December 20X1 (accounting year 01.01-31.12) of the Kapa company.On 1/2/20X1 the company received a bank loan of 60,000€ with a duration of one year at an annual interest rate of 5%. Capital and interest are payable at the end of the loan agreement.On 01/3/20X1 the company received the rents for the next twelve months amounting to 1000 €. The accountant entered the amount in an effective account.On 01/05/20X1 the company paid the annual insurance premiums of the means of transport amounting to 30000. The accountant entered the amount into a claim account.On 1/11/20X1 it granted a loan of €9000 to a supplier for seven months, at an annual interest rate of 7%. Interest will be collected on the date of repayment of the loan.On 1/12/20X1 it collects €3500 as a deposit for services that will be offered from 15/12/20X1 until 31/12/20X2. The accountant enters the event in an income account.

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Carry out the adjustment journal entries on 31 December 20X1 (accounting year 01.01-31.12) of the Kapa company.

On 1/2/20X1 the company received a bank loan of 60,000€ with a duration of one year at an annual interest rate of 5%. Capital and interest are payable at the end of the loan agreement.
On 01/3/20X1 the company received the rents for the next twelve months amounting to 1000 €. The accountant entered the amount in an effective account.
On 01/05/20X1 the company paid the annual insurance premiums of the means of transport amounting to 30000. The accountant entered the amount into a claim account.
On 1/11/20X1 it granted a loan of €9000 to a supplier for seven months, at an annual interest rate of 7%. Interest will be collected on the date of repayment of the loan.
On 1/12/20X1 it collects €3500 as a deposit for services that will be offered from 15/12/20X1 until 31/12/20X2. The accountant enters the event in an income account.

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