A review of the ledger of Marigold Corp. at December 31, 2022, produces the following data pertaining to the preparation of annual adjusting entries. 1. Prepaid Insurance $12,768. The company has separate insurance policies on its buildings and its motor vehicles. Policy B4564 on the building was purchased on July 1, 2021, for $8,064. The policy has a term of 3 years. Policy A2958 on the vehicles was purchased on January 1, 2022, for $6,048. This policy has a term of 2 years. 2. Unearned Rent Revenue $360,360. The company began subleasing office space in its new building on November 1, 2022. At December 31, the company had the following rental contracts that are paid in full for the entire term of the lease. Date Nov. 1 Dec. 1 Term (in months) 1. 2. 3. Notes Payable $33,600. This balance consists of a note for 6 months at an annual interest rate of 9%, dated November 1. Interest will be paid at note maturity. 3. 4. Salaries and Wages Payable $0. There are 8 salaried employees. Salaries are paid every Monday for the prior week. 5 employees receive a salary of $504 each per week, and 3 employees earn $590 each per week. Assume December 31 is a Tuesday. Employees do not work weekends. All employees worked the last 2 days of December. 4. Prepare the adjusting entries at December 31, 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to O decimal places, e.g. 5,125.) 9 No. Date Account Titles and Explanation Dec. 31 6 Dec. 31 Monthly Rent Number of Payment Leases $4,200 $7,140 Dec. 31 5 Dec. 31 4 Debit T Credit OUTH
A review of the ledger of Marigold Corp. at December 31, 2022, produces the following data pertaining to the preparation of annual adjusting entries. 1. Prepaid Insurance $12,768. The company has separate insurance policies on its buildings and its motor vehicles. Policy B4564 on the building was purchased on July 1, 2021, for $8,064. The policy has a term of 3 years. Policy A2958 on the vehicles was purchased on January 1, 2022, for $6,048. This policy has a term of 2 years. 2. Unearned Rent Revenue $360,360. The company began subleasing office space in its new building on November 1, 2022. At December 31, the company had the following rental contracts that are paid in full for the entire term of the lease. Date Nov. 1 Dec. 1 Term (in months) 1. 2. 3. Notes Payable $33,600. This balance consists of a note for 6 months at an annual interest rate of 9%, dated November 1. Interest will be paid at note maturity. 3. 4. Salaries and Wages Payable $0. There are 8 salaried employees. Salaries are paid every Monday for the prior week. 5 employees receive a salary of $504 each per week, and 3 employees earn $590 each per week. Assume December 31 is a Tuesday. Employees do not work weekends. All employees worked the last 2 days of December. 4. Prepare the adjusting entries at December 31, 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to O decimal places, e.g. 5,125.) 9 No. Date Account Titles and Explanation Dec. 31 6 Dec. 31 Monthly Rent Number of Payment Leases $4,200 $7,140 Dec. 31 5 Dec. 31 4 Debit T Credit OUTH
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:A review of the ledger of Marigold Corp. at December 31, 2022, produces the following data pertaining to the preparation of annual
adjusting entries.
1. Prepaid Insurance $12,768. The company has separate insurance policies on its buildings and its motor vehicles. Policy B4564
on the building was purchased on July 1, 2021, for $8,064. The policy has a term of 3 years. Policy A2958 on the vehicles was
purchased on January 1, 2022, for $6,048. This policy has a term of 2 years.
2. Unearned Rent Revenue $360,360. The company began subleasing office space in its new building on November 1, 2022. At
December 31, the company had the following rental contracts that are paid in full for the entire term of the lease.
Date
Nov. 1
Dec. 1
Term
(in months)
1.
2.
3.
3. Notes Payable $33,600. This balance consists of a note for 6 months at an annual interest rate of 9%, dated November 1.
Interest will be paid at note maturity.
4.
4. Salaries and Wages Payable $0. There are 8 salaried employees. Salaries are paid every Monday for the prior week. 5 employees
receive a salary of $504 each per week, and 3 employees earn $590 each per week. Assume December 31 is a Tuesday.
Employees do not work weekends. All employees worked the last 2 days of December.
9
Prepare the adjusting entries at December 31, 2022. (Credit account titles are automatically indented when the amount is entered. Do not
indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to O decimal places,
e.g. 5,125.)
Dec. 31
6
No. Date Account Titles and Explanation
Dec. 31
Monthly Rent
Payment
$4,200
$7,140
Dec. 31
Number of
Leases
Dec. 31
5
4
Debit
Credit
I
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