At the end of the year, the academy calculated that it owed $5,600 in income taxes. Those
Question:
At the end of the year, the academy calculated that it owed $5,600 in income taxes. Those taxes won’t be paid until next April 15.
Salaries earned (but not paid) from December 16 through December 31, 2024, are $2,600.
On March 1, 2024, Chardonnay lends an employee $13,000. The employee signs a note requiring principal and interest at 9% to be paid on February 28, 2025.
On April 1, 2024, Chardonnay pays an insurance company $11,520 for a two-year fire insurance policy. The entire $11,520 is debited to Prepaid Insurance at the time of the purchase.
Chardonnay uses $1,000 of supplies in 2024.
A customer pays Chardonnay $2,280 on October 31, 2024, for three months of personal training to begin November 1, 2024. Chardonnay credits Deferred Revenue at the time of cash receipt.
On December 1, 2024, Chardonnay pays $3,900 rent to the owner of the building. The payment represents rent for December 2024 through February 2025, at $1,300 per month. Prepaid Rent is debited at the time of the payment.
Required:
Record the necessary adjusting entries at December 31, 2024. No prior adjustments have been made during 2024.
Expert Answer:
