FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Concept explainers

The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can resu…
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the a…
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately…
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial repor…
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Question 2 of 3 < > Carla Vista Company has the following information available for accruals for the year ended December 31, 2020. The company adjusts its accounts annually. 1. 2. 3. 4. 5. The December utility bill for $405 was unrecorded on December 31. Carla Vista paid the bill on January 11. Carla Vista is open 7 days a week and employees are paid a total of $4,900 every Monday for a 7-day (Monday-Sunday) workweek. December 31 is a Thursday, so employees will have worked 4 days (Monday, December 28-Thursday, December 31) that they have not been paid for by year-end. Employees will be paid next on January 4. Carla Vista signed a $47,400, 6% bank loan on November 1, 2020, due in 2 years. No interest payments were made in 2020. Interest for 2020 was paid on January 1, 2021. -/1 E 1 Carla Vista receives a fee from Pizza Shop next door for all pizzas sold to customers using Carla Vista's facility. The amount owed for December is $310, which Pizza Shop will pay on January 4. (Hint: Use the Service Revenue account.) Carla Vista 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. For each situation, prepare the adjusting entry required at December 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Dec. 31 Debit Credit 405 h
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Transcribed Image Text:Question 2 of 3 < > Carla Vista Company has the following information available for accruals for the year ended December 31, 2020. The company adjusts its accounts annually. 1. 2. 3. 4. 5. The December utility bill for $405 was unrecorded on December 31. Carla Vista paid the bill on January 11. Carla Vista is open 7 days a week and employees are paid a total of $4,900 every Monday for a 7-day (Monday-Sunday) workweek. December 31 is a Thursday, so employees will have worked 4 days (Monday, December 28-Thursday, December 31) that they have not been paid for by year-end. Employees will be paid next on January 4. Carla Vista signed a $47,400, 6% bank loan on November 1, 2020, due in 2 years. No interest payments were made in 2020. Interest for 2020 was paid on January 1, 2021. -/1 E 1 Carla Vista receives a fee from Pizza Shop next door for all pizzas sold to customers using Carla Vista's facility. The amount owed for December is $310, which Pizza Shop will pay on January 4. (Hint: Use the Service Revenue account.) Carla Vista 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. For each situation, prepare the adjusting entry required at December 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Dec. 31 Debit Credit 405 h
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