Chateau Corporation has reported pre-tax income of $250,000 on December 31, 2021, before considering the transactions and events noted below.  Prepare the adjusting entries needed at December 31, 2021 in order to correctly report Chateau's pre-tax income for the year.     On August 1, 2021, Chateau paid a year's rent in advance on a storage facility and debited the $48,000 payment to Prepaid Rent. Depreciation on office equipment is $18,000. The December utilities bill had not been received as of December 31.  The company has equalized billing for its utilities, and each month's bill is $950.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Chateau Corporation has reported pre-tax income of $250,000 on December 31, 2021, before considering the transactions and events noted below.  Prepare the adjusting entries needed at December 31, 2021 in order to correctly report Chateau's pre-tax income for the year.

 

 

  1. On August 1, 2021, Chateau paid a year's rent in advance on a storage facility and debited the $48,000 payment to Prepaid Rent.
  2. Depreciation on office equipment is $18,000.
  3. The December utilities bill had not been received as of December 31.  The company has equalized billing for its utilities, and each month's bill is $950.
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