For each separate case below, follow the three-step process for adjusting the accrued expense account atDecember 31. Assume no other adjusting entries are made during the year.a. Salaries Payable. At year-end, salaries expense of $5,000 has been incurred by the company but is notyet paid to employees.b. Interest Payable. At its December 31 year-end, the company holds a mortgage payable that hasincurred $1,000 in annual interest that is neither recorded nor paid. The company intends to pay theinterest on January 3 of the next year.

Journal entry: Journal entry is the book of original entry where first transactions are recorded in…

Answered: For each separate case below, follow…

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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Journalize the adjusting entry for each of the following accrued expenses at the end of the current year:a. Product warranty cost, $26,800.b. Interest on the 19 remaining notes owed to Gallardo Co.
During the year ended 30 September 20X9, H recorded the following cash transactions: (1) A payment of an annual insurance premium of $6,000. This covered the period to 31 December 20X9. (2) Receipt of $3,000 in respect of rent from a tenant covering the three-month period to 30 November 20X9. What is the impact on profit and net assets of making the year-end adjustments for deferred income and prepayments at 30 September 20X9? Profit Net assets A. Decrease of $500 Increase of $500 B. Decrease of $1,000 Increase of $1,000 C. Decrease of $500 Decrease of $500 D. Increase of $1,000 Increase of $1,000
Fifteen transactions or events affecting Westmar, Inc., are as follows:a. Made a year-end adjusting entry to accrue interest on a note payable that has the interest ratestated separately from the principal amount.b. A liability classified for several years as long-term becomes due within the next 12 months. c. Recorded the regular weekly payroll, including payroll taxes, amounts withheld from employ-ees, and the issuance of paychecks. d. Earned an amount previously recorded as unearned revenue.e. Made arrangements to extend a bank loan due in 60 days for another 36 months.f. Made a monthly payment on a fully amortizing installment note payable. (Assume this note isclassified as a current liability.)g. Called bonds payable due in 10 years at a price below the carrying value of the liability in theaccounting records.h. Issued bonds payable at 101 on January 31, 2011. The bonds pay interest on January 31 andJuly 31.i. Recorded July 31, 2011, interest expense and made semiannual interest…
Fifteen transactions or events affecting Westmar, Inc., are as follows:a. Made a year-end adjusting entry to accrue interest on a note payable that has the interest ratestated separately from the principal amount.b. A liability classified for several years as long-term becomes due within the next 12 months. c. Recorded the regular weekly payroll, including payroll taxes, amounts withheld from employ-ees, and the issuance of paychecks. d. Earned an amount previously recorded as unearned revenue.e. Made arrangements to extend a bank loan due in 60 days for another 36 months.f. Made a monthly payment on a fully amortizing installment note payable. (Assume this note isclassified as a current liability.)g. Called bonds payable due in 10 years at a price below the carrying value of the liability in theaccounting records.h. Issued bonds payable at 101 on January 31, 2011. The bonds pay interest on January 31 andJuly 31.i. Recorded July 31, 2011, interest expense and made semiannual interest…
Windsor, Inc. borrows $67,200 from Wildhorse Co. on July 1, 2021 signing a 4%, one-year note payable. Interest is to be paid at maturity. Prepare journal entry for Windsor, Inc. to record the receipt of the proceeds of the note. Prepare journal entry for Windsor, Inc. to record the accrued interest at December 31, assuming adjusting entries are made only at year end. Prepare journal entry for Windsor, Inc. to record the payment of the note at maturity.
Concord Company borrows $61,200 on July 1 from the bank by signing a $61,200, 10%, one-year note payable. (a) Prepare the journal entry to record the proceeds of the note.(b) Prepare the journal entry to record accrued interest at December 31, assuming adjusting entries are made only at the end of the year
Demello & 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.…
Demello & 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…
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Entity A received a 12%, ₱200,000, one-year, note receivable on October 1, 20x1. Entity A uses a calendar year period. The principal and interest on the note are due on October 1, 20x2. What is the adjusting entry to take up accrued interest income on December 31, 20x1? Entity A is renting out its building to a tenant for a monthly rent of ₱30,000. As of December 31, 20x1, the tenant has not yet paid the rent for the months of November and December. What is the adjusting entry to take up accrued rent income on December 31, 20x1? Entity A issued a 12%, ₱500,000, one-year, note payable on July 1, 20x1. The principal and interest are due on July 1, 20x2. What is the adjusting entry to take up accrued interest expense on December 31, 20x1? Entity A has equipment with a historical cost of ₱1,000,000. The equipment was estimated to have a 10-year useful life when it was acquired four years ago. What is the adjusting entry to take up the annual depreciation…
On July 1, Alton Co. issued an $74,700, 10%, 120-day note payable to Seller Co. Assume that the fiscal year of Alton Co. ends July 31. Using a 360-day year in your calculations, what is the amount of interest expense recognized by Alton in the current fiscal year? When required, round your answer to the nearest dollar. Select the correct answer. a-$1,246 b-$1,869 c-$7,470 d-$623
Instructions Mar. Purchased merchandise on account from Kirkwood Co., $372,000, terms n/30. 1 31 Issued a 30-day, 4% note for $372,000 to Kirkwood Co., on account. Apr. 30 Paid Kirkwood Co. the amount owed on the note of March 31. Jun. Borrowed $150,000 from Triple Creek Bank, issuing a 45-day, 8% note. 1 Jul. 1. Purchased tools by issuing a $276,000, 60-day note to Poulin Co., which discounted the note at the rate of 6%. 16 Paid Triple Creek Bank the interest due on the note of June 1 and renewed the loan by issuing a new 30-day, 6.5% note for $150,000. (Journalize both the debit and credit to the notes payable account.) Aug. 15 Paid Triple Creek Bank the amount due on the note of July 16. 30 Paid Poulin Co. the amount due on the note of July 1. Dec. Purchased equipment from Greenwood Co. for $540,000, paying $108,000 cash and issuing a series of ten 4% notes for $43,200 each, coming due at 30-day intervals. 22 Settled a product liability lawsuit with a customer for $309,500, payable…

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