1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
a_sh-v [17]
3 years ago
9

Below are transactions for Wolverine Company during 2021.On December 1, 2021, Wolverine 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:
Nutka1998 [239]3 years ago
4 0

Answer: Please see explanation column for answers

Explanation:

Journal for December 2021

A)To record advance in rent from customers

Date Account. Debit Credit

Dec 31 Deferred

Revenue. $2,000

Rent Revenue. $2,000

Reason--->The rent is paid for 2 months in advance ie January and December, but since the adjusting entry is for only December, we will divide .$4000 / 2=

$2,000 as Rent revenue earned.

B) To record Insurance expense

Date Account. Debit Credit

Dec 31 Insurance

Expense. $6,600

Prepaid insurance $6,600

Reason-- The company paid in advance but we consider only from July to December which is 6months as we are only preparing entry for December

Insurance Expense =13,200x 6/12=

$6600

C) To record accrued Salary

Date Account. Debit Credit

Dec 31 Salary

Expense. $3000

Salary payable $3,000

But will be paid next year.

D) To record accrued interest on loan borriwed

Date Account. Debit Credit

Dec 31 Interest

Expense. $250

Interest payable $250

Calculation

Interest =PxRxT=15,000 X 10%x 2/12=$250

Accrued interest from date of loan which is November to December the date of journal entry will be considered

E)To record supply expense for the year

Date Account. Debit Credit

Dec 31 Supply

Expense. $3,900

Supply $3,900

Calculation=

Supply expense=Supply at the onset +purchased supply - used supply.

1000 +3400 -500=$3,900

You might be interested in
A lower control limit must by definition be a value less than an upper control limit. True or false
SVEN [57.7K]

Answer:

True

Explanation:

  • The lower control limit is a limit of the quality control characteristics that describe the common cause of variations form the natural control process,  that horizontal lines that are drawn in the distance of plus and minus 3.  Found usually in the six sigma model of the quality deviation.
5 0
3 years ago
A response strategy requires suppliers be selected based primarily on A. being willing to share information. B. capacity, speed,
soldi70 [24.7K]

Answer:

D

Explanation:

Hope this helps

4 0
2 years ago
________ assesses the consistency of observations by different observers.
gavmur [86]
Inter rater reliability assesses<span> the consistency of observations by different observers.
</span>in statistics, inter rater reliability agreement will determine similar measurements for several statistics.By doing this, the statistics could be done faster without having to compromise its consistency
3 0
3 years ago
Read 2 more answers
What is​ marketing?
mixer [17]
I believe it is;
e. Marketing is a process of creating customer value
based on this excerpt... "<span>the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return"</span><span />
3 0
2 years ago
Frederick Company has two service departments (Cafeteria Services &amp; Maintenance). Frederick has two production departments (
Alja [10]

Answer:

Maintenance total cost: 325,000

Cost Allocated to Packagin from Maintenance 162,500

Explanation:

\left[\begin{array}{ccccc}&Maintenance&Cafeteria&Assembly&Packaging\\Employees&4&&8&8\\Direct \: Cost&270,000&275,000&&\\Allocate C&55,000&-275,000&&\\Subtotal&325,000&&110,000&110,000\\Allocate M&-325,0004&-15,760&-162,500&-162,500\\Total&&&272,500&272,500\\\end{array}\right]

We will divide the cafeteria cost by the sum of employees of the department and maintenance.

4+8+8 = 20

275,000/20 = 13,750

Then we multiply this by each department employees and add them to their cost.

Maintenance total cost after adding cafeteria is 325,000

Then we do the same, we divide this amount for the emplyees of the processsing department:

8 + 8 = 16

325,000/16 =20,325.5

Then we multiply by 8 employees: 162,500

Maintenance total cost: 325,000

Cost Allocated to Packagin from Maintenance: 162,500

5 0
3 years ago
Other questions:
  • If households and firms increase the level of private savings because they become pessimistic about the future, then:
    10·1 answer
  • Explain how incentives and the limited role of government function in a free enterprise system.
    5·1 answer
  • The City of Grand Marais' fiscal year ends on June 30. Grand Marais uses encumbrance accounting. On May 6, a purchase order was
    6·1 answer
  • When evaluating services, consumers generally compare their expectations prior to the service to the outcome once the service is
    8·1 answer
  • Eight years ago you purchased an asset for $100,000 that has yielded a nominal capital gain of $30,000. If you sold the asset to
    12·1 answer
  • A Roth IRA and a Tax Deferred investment plan are just two of many ways you can invest into for your retirement. If you wanted t
    14·2 answers
  • A regular guest requests his wife’s favorite dish a short while before the kitchens closing time. The chef informs the guest tha
    14·1 answer
  • A tenant with a triple net lease rents a building that has the following yearly operating expenses: Property taxes $5,000, Utili
    13·1 answer
  • Levered, Inc., and Unlevered, Inc., are identical in every way except their capital structures. Each company expects to earn $18
    10·1 answer
  • What is the impact of war in international trade
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!