PG&E will bill Craig on January 1 for the prior year December utility services provided of $99. Since the Utilities Expense is incurred in December, the $99 must be recorded as an accrued expense and a liability recorded for the amount that Craig is obligated to pay in January. So an adjusting entry is needed to bring accounts up to date at December 31.

Sheffield Corp. received a check for $19080 on July 1, which represents a 6-month advance payment of rent on a building it rents to a client. Unearned Rent Revenue was credited for the full $19080. Financial statements will be prepared on July 31. Sheffield's should make the following adjusting entry on July 31: debit Unearned Rent Revenue, $19080; credit Rent Revenue, $19080. debit Cash, $19080; credit Rent Revenue, $19080. debit Rent Revenue, $3180; credit Unearned Rent Revenue, $3180. debit Unearned Rent Revenue, $3180; credit Rent Revenue, $3180.

Carla Vista Corporation has the following selected transactions during the year ended December 31, 2024: Jan. 1 Purchased a copyright for $117.480 cash. The copyright has a useful life of six years and a remaining legal life of 30 years. Mar. 1 Sept. 1 Dec. 31 Acquired a franchise with a contract period of nine years for $500,850; the expiration date is March 1, 2033, Paid cash of $38,820 and borrowed the remainder from the bank. Purchased a trademark with an indefinite life for $73,190 cash. As the purchase was being finalized, spent $33.150 cash in legal fees to successfully defend the trademark in court. Purchased an advertising agency for $640,000 cash. The agency's only assets reported on its statement of financial position immediately before the purchase were accounts receivable of $58,000, furniture of $170,000, and leasehold improvements of $320,000. Carla Vista hired an independent appraiser who estimated that the fair value of these assets was accounts receivable $58,000,…

Assume that rent of P14,400 was paid on September 1, 2021 to cover a one-year period from that date. Prepaid Rent was debited. If financial statements are prepared only on December 31 of each year, what amount should be debited to Rent Expense in the adjusting entry on December 31, 2021 to bring the accounts involved to their correct balances?

On July 1, 2022, Sheridan Company pays $12,500 to Oriole Company for a 2-year insurance contract. Both companies have fiscal years ending December 31.     Journalize the entry on July 1 and the adjusting entry on December 31 for Oriole Company. Oriole uses the accounts Unearned Service Revenue and Service Revenue.

On March 31, a company with a June 30 fiscal year-end pays $3,600,000 to an insurance company for a two- year insurance policy that will start today. Prepare the journal entry for the March 31 transaction AND the appropriate adjusting journal entry that would be needed at the end of the fiscal year.