ed Commander Appliance Store prepares annual financial statements. At December 31, 2022. Commander needs to analyze the following items to determine whether adjusting entries are required for 2022. 1. Twenty-two employees worked during 2022 and each of them will take two weeks of vacation in 2023. Twelve of these employees earn $500 per week and ten employees earn $800 per week. (If an adjusting entry is required, ignore payroll taxes on this item.) 2. Office rent for January, 2023 has not yet been paid. 3. Commander sold 3,000 coffee brewing machines for total sales of $150,000. Commander expects that 30 machines will need warranty repairs in the next two years and estimates the cost of repairs to be $2.400. 4. Commander has been sued by a customer and assesses the probability of losing the lawsuit to be reasonably possible. The estimate of the contingency loss is $20,000. Required: Record the adjusting entry needed at December 31. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field." No 1 2 3 Transaction 1 4 2 3 No Journal Entry Required 4 No Journal Entry Required Warranty expense Warranty payable Compensation expense Accounts payable Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; ne ponts deducted Account Title ** ✪ 00 O ✪ Debit 2,400 20,000 Credit 2,400 20,000
ed Commander Appliance Store prepares annual financial statements. At December 31, 2022. Commander needs to analyze the following items to determine whether adjusting entries are required for 2022. 1. Twenty-two employees worked during 2022 and each of them will take two weeks of vacation in 2023. Twelve of these employees earn $500 per week and ten employees earn $800 per week. (If an adjusting entry is required, ignore payroll taxes on this item.) 2. Office rent for January, 2023 has not yet been paid. 3. Commander sold 3,000 coffee brewing machines for total sales of $150,000. Commander expects that 30 machines will need warranty repairs in the next two years and estimates the cost of repairs to be $2.400. 4. Commander has been sued by a customer and assesses the probability of losing the lawsuit to be reasonably possible. The estimate of the contingency loss is $20,000. Required: Record the adjusting entry needed at December 31. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field." No 1 2 3 Transaction 1 4 2 3 No Journal Entry Required 4 No Journal Entry Required Warranty expense Warranty payable Compensation expense Accounts payable Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; ne ponts deducted Account Title ** ✪ 00 O ✪ Debit 2,400 20,000 Credit 2,400 20,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:ed
Commander Appliance Store prepares annual financial statements. At December 31, 2022. Commander needs to analyze the following
items to determine whether adjusting entries are required for 2022.
1. Twenty-two employees worked during 2022 and each of them will take two weeks of vacation in 2023. Twelve of these
employees earn $500 per week and ten employees earn $800 per week. (If an adjusting entry is required, ignore payroll taxes
on this item.)
2. Office rent for January, 2023 has not yet been paid.
3. Commander sold 3,000 coffee brewing machines for total sales of $150.000. Commander expects that 30 machines will need
warranty repairs in the next two years and estimates the cost of repairs to be $2,400.
4. Commander has been sued by a customer and assesses the probability of losing the lawsuit to be reasonably possible. The
estimate of the contingency loss is $20,000.
Required:
Record the adjusting entry needed at December 31.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field."
No
1
2
3
Transaction
1
4
2
3
No Journal Entry Required
4
No Journal Entry Required
Warranty expense
Warranty payable
Compensation expense
Accounts payable
ed text indicates na response was expected in a cell or a formule-based calculation is incorrect; no ponts deducted
Account Title
X
*
O
>>
O
X
Debit
2,400
20,000
X
3
Credit
2,400
20,000
Ⓡ
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