Chris Phillip financial year end is December 31 each year. The following information and transactions for 2023 are as follows: Feb 1. Paid fourteen (14) months’ rent on a lease rental contract at $35,000 per month. 1. Prepare the Journal entry and general ledger account for the above transaction. 2. Prepare the adjusting jounral entry and update general ledger account for the following transaction - Rent NOT expired on December 31, 2023, $70,000

Chris Phillip financial year end is December 31 each year. The following information and transactions for 2023 are as follows: Feb 1. Paid fourteen (14) months’ rent on a lease rental contract at $35,000 per month. 1. Prepare the Journal entry and general ledger account for the above transaction. 2. Prepare the adjusting jounral entry and update general ledger account for the following transaction - Rent NOT expired on December 31, 2023, $70,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Using Liability Method.
Under the assumptlon: Unused vacation leaves do not vest (accumulating and non-vesting), What is the balance of llablity for compensated absences for the year ended December 31, 2019? * ABC Corp allows each employee to earn 15 days of paid vacation leave per year. Unused vacation leave can be carried up to two years from the year there were earned, thereafter it shall expire. The company has 50 employees (assumed have been employed throughout 2019 and 2020) with an average salary of P900 per day. Salary rates increased by 10% in 2020. According to past experience, 75% of allowed leaves to be carried-forward are ultimately exercised by the employees. Total leave vacation taken by employees during 2019 and 2020 were 400 days and 480 days, respectively. Your answer
The following are the trial balance and the other information related to Bruce Marigold, who operates a construction hauling business.MARIGOLDTRIAL BALANCEDECEMBER 31, 2020 DebitCreditCash$39,000Accounts Receivable48, 400Allowance for Doubtful Accounts$3,400 Supplies3, 040Prepaid Insurance1, 200Equipment30, 000Accumulated Depreciation Equipment5, 750Notes Payable 7, 200Owners Capital45, 640Service Revenue 97,790 Rent Expense 7, 800Salaries and Wages Expense28, 400Utilities Expenses1, 040Office Expense900 $159, 780$159, 7801. Fees received in advance from clients $5, 100, which were recorded as revenue.2. Services performed for clients that were not recorded by December 31, $5,000.3. Equipment is being depreciated at 8% per year.4. Bad debt expense for the year is $1,470.5. Insurance expired during the year $520.6. Marigold gave the bank a 90-
On December 1, 2020, Carlos entered into a lease on a building for use in his business for $1,500 per month. Under the lease terms, Carlos pays 12 months’ rent ($18,000) in advance on December 1. How much can Carlos deduct for rent in 2020? a. $18,000 b. $1,000 c. $13,000 d. $12,000
Prepare journal entries to record the following transaction: Ulta Inc. allows each employee to earn 15 paid vacation days each year with full pay. Unused vacation time can be carried over to the next year. By the end of 2020, three employees carried over to 2021 a total of 20 vacation days, which is represented 2020 salary of $6,000
The prepaid rent is P120,000 good for one year starting November 30, 2020. The balance sheet date is December 31, 2020. The prepayment was recorded under asset method. The correct rent expense for the given period would be:
On July 1, 2020, Shroff Company leased a warehouse building under a 10-year lease agreement. The lease requires quarterly lease payments of $4,500. The first lease payment is due on September 30, 2020. The lease was reported as a finance lease using an 8% annual interest rate. a. Prepare the journal entry to record the commencement of the lease on July 1, 2020. b. Prepare the journal entries that would be necessary on September 30 and December 31, 2020. c. Post the entries from parts a and b in their appropriate T-accounts. d. Prepare a financial statement effects template to show the effects template to show the effects of the entries from parts a and b on the balance sheet and income statement.
On December 1, 2021, Carlos entered into a lease on a building for use in his business for $1,500 per month. Under the lease terms, Carlos pays 12 months' rent ($18,000) in advance on December 1. How much can Carlos deduct for rent in 2021? a.$13,000 b.$18,000 c.$1,000 d.$12,000
990.
On January 1, Mason Co. entered into a three-year lease on a building. The current value of the three lease payments is $60,000. Required Prepare entries for Mason to record (a) the lease asset and obligation at January 1 and (b) the $20,000 straight-line amortization at December 31 of the first year.
On January 1, 2024, Poplar Fabricators Corporation agreed to grant its employees two weeks of vacation each year, with the stipulation that vacations earned each year can be taken the following year. For the year ended December 31, 2024, Poplar Fabricators' employees each earned an average of $800 per week Nine hundred vacation weeks earned in 2024 were not taken during 2024 Required: 1. Prepare the appropriate adjusting entry for vacations earned but not taken in 2024. 2. Suppose that, by the time vacations actually are taken in 2025, salary rates for employees have risen by an average of 5 percent from their 2024 level. Also, assume salaries earned in 2025 (including vacations earned and taken in 2025) were $31 million. Prepare a journal entry that summarizes 2025 salaries and the payment for 2024 vacations taken in 2025.
Accrued Vacation Pay A business provides its employees with varying amounts of vacation per year, depending on the length of employment. The estimated amount of the current year’s vacation pay is $77,400. Journalize the adjusting entry required on January 31, the end of the first month of the current year, to record the accrued vacation pay. If an amount box does not require an entry, leave it blank. fill in the blank db942400303a02e_2 fill in the blank db942400303a02e_3 fill in the blank db942400303a02e_5 fill in the blank db942400303a02e_6 b. How is the vacation pay reported on the company's balance sheet? When is this amount removed from the company's balance sheet?