b. For each situation, prepare the journal entry to record the subsequent cash transaction in 2021. Crane
Fantastic news! We've Found the answer you've been seeking!
Question:
b. For each situation, prepare the journal entry to record the subsequent cash transaction in 2021.
Transcribed Image Text:
Crane Limited has the following information available for accruals for the year ended December 31, 2021. The company adjusts its accounts annually. 1. 2. 3. 4. 5. The December utility bill for $438 was unrecorded on December 31. Crane paid the bill on January 21. Crane is open seven days a week and employees are paid a total of $3,430 every Monday for a seven-day (Monday-Sunday) workweek. December 31 is a Friday, so employees will have workedfive days (Monday, December 27 to Friday, December 31) that they have not been paid for by yearend. Employees will be paid next on Monday, January 3. Crane signed a $46,700, 5% bank loan on November 1, 2020, due in two years. Interest is payable on the first day of each following month and was last paid on December 1. Crane receives a fee from Pizza Shop next door for all pizzas sold to customers using Crane's facility. The amount owing for December is $300, which Pizza Shop will pay on January 4. (Hint: Use the Fees Earned account.) Crane rented some of its unused warehouse space to a client for $6.400 a month, payable the first day of the following month. It received the rent for the month of December on January 2. For each situation, prepare the adjusting entry required at December 31. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to 0 decimal places, e.g. 5,275.) Crane Limited has the following information available for accruals for the year ended December 31, 2021. The company adjusts its accounts annually. 1. 2. 3. 4. 5. The December utility bill for $438 was unrecorded on December 31. Crane paid the bill on January 21. Crane is open seven days a week and employees are paid a total of $3,430 every Monday for a seven-day (Monday-Sunday) workweek. December 31 is a Friday, so employees will have workedfive days (Monday, December 27 to Friday, December 31) that they have not been paid for by yearend. Employees will be paid next on Monday, January 3. Crane signed a $46,700, 5% bank loan on November 1, 2020, due in two years. Interest is payable on the first day of each following month and was last paid on December 1. Crane receives a fee from Pizza Shop next door for all pizzas sold to customers using Crane's facility. The amount owing for December is $300, which Pizza Shop will pay on January 4. (Hint: Use the Fees Earned account.) Crane rented some of its unused warehouse space to a client for $6.400 a month, payable the first day of the following month. It received the rent for the month of December on January 2. For each situation, prepare the adjusting entry required at December 31. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to 0 decimal places, e.g. 5,275.)
Expert Answer:
Answer rating: 100% (QA)
a 1 December Utility Bill Debit Accounts Payable 438 Credit Utilities Expense 438 2 Unpaid Sala... View the full answer
Related Book For
College Mathematics for Business Economics Life Sciences and Social Sciences
ISBN: 978-0321614001
12th edition
Authors: Raymond A. Barnett, Michael R. Ziegler, Karl E. Byleen
Posted Date:
Students also viewed these accounting questions
-
Different types of business customer can be found in business market. Illustrate each type of business customer with different industries example
-
In Problems 37-42, the indefinite integral can be found in more than one way. First use the substitution method to find the indefinite integral. Then find it without using substitution. Check that...
-
In Problems 19-22, the limit can be found in two ways. Use L'Hopital's rule to find the limit and check your answer using an algebraic simplification. 20. 22. i 25 lim x6x 91
-
Devils Tower National Monument in Wyoming became America's first national monument in 1906. This rock formation has a height of 867 feet and is a popular climbing site. It was also used as the alien...
-
Let {bn} be a sequence and let an = bn bn1. Show that an Converges if and only if Ilm bn exists. Hit 7-00
-
A donor gives a gift to a charity that is to be conveyed to a separate beneficiary. What is the method of reporting for each party if the donor retains the right to revoke or redirect use of the gift?
-
An often-ignored concept in breach of contract is the availability, if any, of the award of punitive damages. Often, cases incorporate both breach of contract and tort actions. The tort actions...
-
Stephen Bosworth, a super salesman contemplating retirement on his fifty-fifth birthday, decides to create a fund on an 8% basis that will enable him to withdraw $25,000 per year on June 30,...
-
Describe a typical backup scenario and share your preferred Oracle database backup type. Why is it most appropriate? Is there a role for the Recovery Manager (RMAN) for this procedure? Explain.
-
Christo Manufacturing Company incurs the following manufacturing cost items during the month of March 2022: (1.1) Assembly line wages (1.2) Raw materials used directly in products (1.3) Depreciation...
-
Gamma Ltd. acquired a tract of land with a building for $600,000. The closing statement indicated that the lands assessed tax value was $400,000 and the buildings value was $200,000. The land was...
-
Find A U B. (Use the roster method to write the set. Enter EMPTY or for the empty set.) A = {-6, -3, -1} B = {-1, 1, 3} AUB=
-
Find f(a+h)-f(a) for the function. Simplify your answer. f(x) = x 3x + 9 f(a+h)-f(a) = X
-
John would like to have $25000 in 5 years. If he invests in an annuity earning 4% compounded monthly, how much should he deposit per month to reach his goal?
-
If you knew only the circumference of one of the smaller circles in this figure, you could find the circumference of the larger circle by multiplying the smaller circumference by 2. 1 cm 1 cm 1 cm 1...
-
Multiply or divide the following measurements. Be sure each answer you enter contains the correct number of significant digits. 406.0 mol 0.62 L 20.94 g mL x 38. mL 322.2 m 49.623 s Prane AUR mol 07...
-
Alice received property as a beneficiary of her father's estate when he died during the most recent tax year. what would be the starting date for the holding period of property that alice acquired?
-
Tiger, Inc. signed a lease for equipment on July 1, 2007.The lease is for 10 years (the useful life of the asset).The first of 10 equal annual payments of $500,000 was made on July 1, 2007.The...
-
Product demand. The daily demand equations for the sale of brand A coffee and brand B coffee in a supermarket are x = f(p,q) = 200 - 5p + 4q Brand A coffee x = g(P-q) = 300 + 2p - 4q Brand 3 coffee
-
Most appliance manufacturers produce conventional and energy-efficient models. The energy-efficient models are more expensive to make but cheaper to operate. The costs of purchasing and operating a...
-
Subtract the sum of the first two polynomials from the sum of the last two: 3m2 - 2m + 5, 4m2 - m, 3m2 - 3m - 2, m3 + m2 + 2
-
Company data for dividend per share (DPS), earnings per share (EPS), share price, and price-to-earnings ratio (P/E) for the most recent five years are presented in Exhibit 10-9. In addition,...
-
The best model to use when valuing a young dividend-paying company that is just entering the growth phase is most likely the: A. Gordon growth model. B. Two-stage dividend discount model. C....
-
For the next three years, the annual dividends of a stock are expected to be 2.00, 2.10, and 2.20. The stock price is expected to be h20.00 at the end of three years. If the required rate of return...
Study smarter with the SolutionInn App