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Business, 13.06.2020 21:57 lizisapenguin
Information necessary to prepare the year-end adjusting entries appears below. Depreciation on the office equipment for the year is $10,500. Employee salaries are paid twice a month, on the 22nd for salaries earned from the 1st through the 15th, and on the 7th of the following month for salaries earned from the 16th through the end of the month. Salaries earned from December 16 through December 31, 2021, were $1,000. On October 1, 2021, Pastina borrowed $51,000 from a local bank and signed a note. The note requires interest to be paid annually on September 30 at 12%. The principal is due in 10 years. On March 1, 2021, the company lent a supplier $21,000 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2022. On April 1, 2021, the company paid an insurance company $7,000 for a one-year fire insurance policy. The entire $7,000 was debited to prepaid insurance. $620 of supplies remained on hand at December 31, 2021. A customer paid Pastina $2,500 in December for 1,000 pounds of spaghetti to be delivered in January 2022. Pastina credited deferred sales revenue. On December 1, 2021, $1,400 rent was paid to the owner of the building. The payment represented rent for December 2021 and January 2022 at $700 per month. The entire amount was debited to prepaid rent. rev: 09_14_2019_QC_CS-180268, 10_11_2019_QC_CS-184133 Required: 1.
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Information necessary to prepare the year-end adjusting entries appears below. Depreciation on the o...
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