the following information to provide the adjusting journal entry that Chipotle should have made on December 31, 2020which was the end of the fiscal year 2020. Assume that Chipotle makes adjusting entries once a year at fiscal year end. At the end of fiscal year 2020, Chipotle owed employees $203 million related to work completed (but not yet paid) during fiscal year 2020. What adjusting journal entry should Chipotle make on December 31, 2020 related to these wages owed to employees? Account Title Debit Credit Salary expense 203   Salary payable   203 At the end of fiscal year 2020, Chipotle calculates that it has $105 million in sales on account that have not yet been received or recorded. What adjusting

Use the following information to provide the adjusting journal entry that Chipotle should have made on December 31, 2020which was the end of the fiscal year 2020. Assume that Chipotle makes adjusting entries once a year at fiscal year end.

1. At the end of fiscal year 2020, Chipotle owed employees $203 million related to work completed (but not yet paid) during fiscal year 2020. What adjusting journal entry should Chipotle make on December 31, 2020 related to these wages owed to employees?

1. At the end of fiscal year 2020, Chipotle calculates that it has $105 million in sales on account that have not yet been received or recorded. What adjusting journal entry should Chipotle make on December 31, 2020 related to the sales on account?

1. Chipotle receives a utility bill every four weeks for the previous four weeks. On February 15, 2021, Chipotle receives a bill of $18 million covering the last three weeks of fiscal year 2020 and the first week of fiscal year 2021. Assuming that utilities are used evenly over the period, what adjusting journal entry should Chipotle make on December 31, 2020 related to this future utility bill?

1. Chipotle’s property and equipment depreciates $239 million during fiscal year 2020.

1. On April 1, 2020, Chipotle paid $220 million for future adverting of its products. The ads will run over the subsequent 12-month period (i.e., April 1, 2020 to March 31, 2021). On April 1, Chipotle made the following journal entry:

Chipotle did not make any journal entries related to the prepaid advertising after the initial journal entry shown above. What adjusting journal entry should Chipotle make on December 31, 2020 related to the prepaid advertising?

1. On January 1, 2020, Chipotle had $16 million in Supplies, and they purchased $35 million more in Supplies during fiscal year 2020. A year-end physical count of Chipotle’s supplies indicates that they have $23 million worth of Supplies remaining as of December 31, 2020. If Chipotle did not make journal entries when they used supplies during fiscal year 2020, what adjusting journal entry should Chipotle make related to its Supplies on December 31, 2020?

1. On October 1, 2020, Chipotle sold $168 million of gift cards to a corporate client. Chipotle assumes that these gift cards will be redeemed evenly each month over the next 24 months. On October 1, 2020, Chipotle made the following journal entry:

Gift cards were redeemed during October, November, and December, but Chipotle did not make any journal entries related to the unearned revenue after the initial journal entry shown above. What adjusting journal entry should Chipotle make on December 31, 2020 related to the unearned revenue?

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For parts h-k, describe, when applicable, the impact (if the item is overstated or understated) on the items listed on the Income Statement (revenues or expenses and net income) and the items shown on the Balance Sheet (assets, liabilities, retained earnings, and stockholders’ equity). Note, when a few entries are listed in the same part, the impacts are the same for all of them. Put an “X” in the proper box. If there is no impact, leave the box blank.

1. What is the effect on the income statement and the balance sheet if entries a) or c) were omitted?

1. What is the effect on the income statement and the balance sheet if entry b) was omitted?

1. What is the effect on the income statement and the balance sheet if entries d), or e) or f) were omitted?

1. What is the effect on the income statement and the balance sheet if entry g) was omitted?