2. The following selected transactions relate to Collier Corporation's liabilities for December 2024. Collier's fiscal year ends on December 31. December 1 December 15 December 31 Received $20,000 from Franklin Corporation toward the purchase of a $200,000 computer system to be delivered on January 6, 2025. Collier estimates it is probable that it will receive a $100,000 gain contingency and pay a $400,000 loss contingency. Collier's employees receive two weeks of vacation each year, with the stipulation that vacations earned each year can be taken in the following year. During 2024, Collier's employees earned an average of $900 per week. Seven hundred vacation weeks earned in 2024 were not taken in 2024. INSTRUCTIONS: Prepare the appropriate journal entries for December 1 and December 15. Prepare the appropriate adjusting entry for the vacation weeks earned in 2024 and not taken in 2024.

2. The following selected transactions relate to Collier Corporation's liabilities for December 2024. Collier's fiscal year ends on December 31. December 1 December 15 December 31 Received $20,000 from Franklin Corporation toward the purchase of a $200,000 computer system to be delivered on January 6, 2025. Collier estimates it is probable that it will receive a $100,000 gain contingency and pay a $400,000 loss contingency. Collier's employees receive two weeks of vacation each year, with the stipulation that vacations earned each year can be taken in the following year. During 2024, Collier's employees earned an average of $900 per week. Seven hundred vacation weeks earned in 2024 were not taken in 2024. INSTRUCTIONS: Prepare the appropriate journal entries for December 1 and December 15. Prepare the appropriate adjusting entry for the vacation weeks earned in 2024 and not taken in 2024.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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December 31. Recorded all necessary at
May 1
August 1
INSTRUCTIONS: Prepare all required journal entries for 2024 and 2025.
December 1
2. The following selected transactions relate to Collier Corporation's liabilities for December
2024. Collier's fiscal year ends on December 31.
esc
Paid the Liberty Bank promissory note issued on October 1, 2024.
Paid the Liberty Bank commercial paper note issued on December 1, 2024.
December 15
Received $20,000 from Franklin Corporation toward the purchase of a
$200,000 computer system to be delivered on January 6, 2025.
Collier estimates it is probable that it will receive a $100,000 gain contingency and
pay a $400,000 loss contingency.
December 31 Collier's employees receive two weeks of vacation each year, with the stipulation
that vacations earned each year can be taken in the following year. During 2024,
Collier's employees earned an average of $900 per week. Seven hundred vacation
weeks earned in 2024 were not taken in 2024.
INSTRUCTIONS: Prepare the appropriate journal entries for December 1 and December 15.
Prepare the appropriate adjusting entry for the vacation weeks earned in 2024 and not taken in
2024.
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