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Nata [24]
3 years ago
12

Record year-end adjusting entries (LO3-3) Below are transactions for Wolverine Company during 2021. On December 1, 2021, Wolveri

ne receives $4,000 cash from a company that is renting office space from Wolverine. The payment, representing rent for December and January, is credited to Deferred Revenue. Wolverine purchases a one-year property insurance policy on July 1, 2021, for $13,200. The payment is debited to Prepaid Insurance for the entire amount. Employee salaries of $3,000 for the month of December will be paid in early January 2022. On November 1, 2021, the company borrows $15,000 from a bank. The loan requires principal and interest at 10% to be paid on October 30, 2022. Office supplies at the beginning of 2021 total $1,000. On August 15, Wolverine purchases an additional $3,400 of office supplies, debiting the Supplies account. By the end of the year, $500 of office supplies remains.Required:
Record the necessary adjusting entries at December 31, 2021, for Wolverine Company. You do not need to record transactions made during the year. Assume that no financial statements were prepared during the year and no adjusting entries were recorded. (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.)
Business
1 answer:
marysya [2.9K]3 years ago
3 0

Answer: See explanation

Explanation:

1. Dr Deferred revenue 2,000

Cr. Rent revenue 2,000

2 Dr. Insurance expense 6,600

Cr. Prepaid insurance 6,600

3 Dr Salaries expense 3,000

Cr Salaries payable 3,000

4 Dr Interest expense 250

Cr Interest payable 250

5 Dr Supplies expense 3,900

Cr Supplies. 3900

N. B:

Rent revenue for December was calculated as:

= $4,000 x 1/2

= $2,000

Insurance expense for the current year was calculated as:

= $13,200 x 6/12

= $6,600

Interest expense:

= $15,000 x 10% x 2/12

= $15000 × 0.1 × 2/12

= $250

Supplies expense:

= $1,000 + $3,400 - $500

= $3,900

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Year ______ Working _________ Dividend

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2______ $0.20 x ( 1 + 16% )^2 ____ $0.269

3______ $0.20 x ( 1 + 16% )^3 ____ $0.312

4______ $0.20 x ( 1 + 16% )^4 ____ $0.362

5______$0.362 x ( 1 + 3.5% ) _____$0.375

Now calculate the present value of each year's dividend using following formula

PV = Dividend / ( 1 + required rate of return )^numbers of years

Year _____ Working ______________________ PRESENT VALUES

1 ______ $0.232 / ( 1 + 15.5% )^1 _____________ $0.201

2______ $0.269 / ( 1 + 15.5% )^2 _____________$0.202

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Internal Environmental Analysis
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The analysis that you have been asked to examine is called SWOT Analysis. See the categorization below.

<h3>What is SWOT Analysis?</h3>

This is simply a situational analysis that considers the strengths, weaknesses, opportunities, and threats that a company might face in the execution of its business strategy.

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2 years ago
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Direct Materials $20.000

Direct labor $10.00

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Explanation:

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3 years ago
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