Question: Consider the following items for Wolverine Properties during 2024. On December 1, 2024, Wolverine received $2,600 cash from a company renting office space from Wolverine.
Consider the following items for Wolverine Properties during 2024.
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On December 1, 2024, Wolverine received $2,600 cash from a company renting office space from Wolverine. The payment, representing rent for December and January, was recorded to Deferred Revenue on December 1.
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Wolverine purchases a one-year property insurance policy on July 1, 2024, for $11,520. The payment was recorded in Prepaid Insurance for the entire amount on July 1.
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Employee salaries of $1,600 for the month of December will be paid in early January 2025.
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On November 1, 2024, the company borrowed $8,000 from a bank. The loan requires principal and interest at 9% to be paid on October 30, 2025.
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Office supplies at the beginning of 2024 totaled $860. On August 15, Wolverine purchased an additional $2,000 of office supplies, recorded to the Supplies account. By the end of the year, $360 of office supplies remains.
Required:
Record the necessary adjusting entries on December 31, 2024, for Wolverine Properties. You do not need to record transactions made during the year. Assume no financial statements were prepared during the year, and no adjustments were previously recorded.
Note: If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.
On December 1, 2024, Wolverine received $2,600 cash from a company renting office space from Wolverine. The payment, representing rent for December and January, was recorded to Deferred Revenue on December 1. Record the adjusting entry for deferred revenue at its year-end of December 31.
Note: Enter debits before credits.
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Wolverine purchases a one-year property insurance policy on July 1, 2024, for $11,520. The payment was recorded in Prepaid Insurance for the entire amount on July 1. Record the adjusting entry for insurance at its year-end of December 31.
Note: Enter debits before credits.
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Employee salaries of $1,600 for the month of December will be paid in early January 2025. Record the adjusting entry for salaries at its year-end of December 31.
Note: Enter debits before credits.
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On November 1, 2024, the company borrowed $8,000 from a bank. The loan requires principal and interest at 9% to be paid on October 30, 2025. Record the adjusting entry for interest at its year-end of December 31.
Note: Enter debits before credits.
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Office supplies at the beginning of 2024 totaled $860. On August 15, Wolverine purchased an additional $2,000 of office supplies, recorded to the Supplies account. By the end of the year, $360 of office supplies remains. Record the adjusting entry for office supplies at its year-end of December 31.
Note: Enter debits before credits.
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