During its first year of operations, Riverside Company completed the following two transactions. The company's fiscal...

 
 

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During its first year of operations, Riverside Company completed the following two transactions. The company's fiscal year ends on December 31. a. Paid and recorded wages of $149,000 during year 1; however, at the end of that year, wages of $3,200 for three days are unpaid and unrecorded because the next weekly pay day is January 6, of year 2. b. Rented office space to another party and collected $4,425 on December 12, of year 1. The rent collected was for 30 days from December 12, year 1 through January 10, year 2, and was credited in full to rent revenue. Required: 1. Prepare (a) the adjusting entry required on December 31, year 1 and (b) the journal entry required on January 6, year 2 to record the payment of any unpaid wages from December of year 1. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 2 Record wages due and not paid. sote: Enter detits before credits Transaction Racord antry General Journal Clear anbry Debit Credit View general Journal < Prev 4 of 8 Nevt s 4 2. Prepare (a) the journal entry for the collection of rent on December 12, year 1, and (b) the adjusting entry on December 31, year 1. (f no entry is required for a transaction/event, select "No journal entry required in the first account field. Do not round Intermediate calculations.) 00:57:34 View transaction list Journal entry worksheet 1 2 Record collection of rent revenue for a month. Note: Enter debits before creats Transaction a Racord entry General Journal Clear entry Debit Credit View general Journal 7 3. Determine the financial statement effects for each of the journal entries you prepared in (1) and (2). Indicate the accounts affected, amounts, and direction of the effects (+ for increases and for decreases) on the accounting equation. (Enter any decreases to account balances with a minus sign.) Date Dec. 31, year 1 (Wages) Jan. 6, year 2 Dec. 10, year 1 Dec. 31, year 1 (Rent) Statement of Financial Position at December 31, Year 1 Assets Current abilities: Liabilition 4. Show how the liabilities related to these transactions should be reported on the company's statement of financial position at December 31, year 1. Shareholders' Equity During its first year of operations, Riverside Company completed the following two transactions. The company's fiscal year ends on December 31. a. Paid and recorded wages of $149,000 during year 1; however, at the end of that year, wages of $3,200 for three days are unpaid and unrecorded because the next weekly pay day is January 6, of year 2. b. Rented office space to another party and collected $4,425 on December 12, of year 1. The rent collected was for 30 days from December 12, year 1 through January 10, year 2, and was credited in full to rent revenue. Required: 1. Prepare (a) the adjusting entry required on December 31, year 1 and (b) the journal entry required on January 6, year 2 to record the payment of any unpaid wages from December of year 1. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 2 Record wages due and not paid. sote: Enter detits before credits Transaction Racord antry General Journal Clear anbry Debit Credit View general Journal < Prev 4 of 8 Nevt s 4 2. Prepare (a) the journal entry for the collection of rent on December 12, year 1, and (b) the adjusting entry on December 31, year 1. (f no entry is required for a transaction/event, select "No journal entry required in the first account field. Do not round Intermediate calculations.) 00:57:34 View transaction list Journal entry worksheet 1 2 Record collection of rent revenue for a month. Note: Enter debits before creats Transaction a Racord entry General Journal Clear entry Debit Credit View general Journal 7 3. Determine the financial statement effects for each of the journal entries you prepared in (1) and (2). Indicate the accounts affected, amounts, and direction of the effects (+ for increases and for decreases) on the accounting equation. (Enter any decreases to account balances with a minus sign.) Date Dec. 31, year 1 (Wages) Jan. 6, year 2 Dec. 10, year 1 Dec. 31, year 1 (Rent) Statement of Financial Position at December 31, Year 1 Assets Current abilities: Liabilition 4. Show how the liabilities related to these transactions should be reported on the company's statement of financial position at December 31, year 1. Shareholders' Equity