Question

You are the accountant for Nedelec Ltd. (Nedelec). For each of the following situations, prepare the required adjusting entries. Also show the related transactional entries and the date the entries would be made. Assume a December 31 year-end. This question can be done using an accounting equation spreadsheet or journal entries.
a. On September 12, Nedelec loaned $25,000 to a senior executive. The loan, plus interest of $750, must be paid on March 1 of the next year.
b. Nedlec pays its salaried employees monthly, on the 15th of the month. On
December 31 it owed its employees $4,500.
c. On July 10, Nedlec received a $10,000 deposit for services that were to be provided over the next 10 months, beginning on August 1. The services provided are worth the same amount each month.
d. On November 2, Nedlec purchased $32,000 of merchandise it required for a customer order to be completed in the next year. On December 31, Nedlec discovered that $5,000 of this merchandise had been stolen.
e. On June 30, Nedlec purchased a building for $10,000,000. The estimated life of the building is 25 years.



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  • CreatedFebruary 26, 2015
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