1.The Grandville Company is a consulting company. Grandville adjusts its accounting records on an annual basis at...
Question:
1.The Grandville Company is a consulting company. Grandville adjusts its accounting records on an annual basis at 12/31, the end of its fiscal year. During 2022, the Grandville Co. had the following information about cash receipts and cash disbursements: 2022 Cash collected from clients on billings $3,700,000 Cash received from borrowing via a bank loan 400,000 Cash received for interest on the note receivable ? Cash received for repayment of the note receivable 500,000 Cash paid for purchase of office equipment (purchase date was 1/1/2022) 800,000 Cash paid for advertising 200,000 Cash paid for salaries 1,900,000 Cash paid for rent 408,000 Additional information: During 2022, Grandville Co. billed clients $4,300,000 for services rendered in 2022. Grandville began 2022 with a balance in Accounts Receivable of $400,000. Grandville anticipates no bad debts from extending credit to its clients. During 2022, Grandville incurred $250,000 in advertising costs related to advertising that ran in 2022. Grandville began 2022 with a $70,000 balance due to the advertising company. The $408,000 rent payment in 2022 was for 1 year of rent, running Oct. 1, 2022 to Sept. 30, 2023. Grandville has a policy of recording all prepayments of rent as rent expense. There was no balance in salaries payable at 1/1/2022 or at 12/31/2022. The bank loan that Grandville took out in 2022 was a 6-month note requiring principal and interest at 6% to be repaid at the maturity date of March 1, 2023. Grandville uses straight-line depreciation on the office equipment and a 5 year useful life with no estimated residual value. Grandville began 2022 with a balance in Notes Receivable of $500,000. The $500,000 note receivable originated on 5/1/2019 related to a loan to one of Grandville's clients. The note is a three-year note requiring annual interest payments on 5/1 at 8% and repayment of the principal at maturity. REQUIREMENTS: Follow the requirements provided in Question 1 (1a-1c) for Grandville Co. (a fictitious company).
required :
. Provide all of Grandville's journal entries related to the information above
Provide all of Grandville's adjusting journal entries at 12/31/2022. Account name Debit Credit
Accounting Principles
ISBN: 978-1119048503
7th Canadian Edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak