6. (a) Cox's Bazar Beach Motel adjusts and closes its accounts once a year on December31. Most guests of the motel pay at the time they check out and the amounts collectedare credited to 'rental revenue'. A few guests pay in advance for rooms and theseamounts are credited to 'unearned rental revenue' at the time of receipt. The followinginformation is available as a source for preparing adjusting entries at December 31,2021.(i) A one-year bank loan in the amount of $80,000 has been obtained on November1. No interest has been paid and no interest expense has been recorded. Theinterest accrued at December 31 is $ 1,600.(ii) On December 16, a suite of rooms was rented to a corporation for 6 months at amonthly rental of $ 3,200. The entire 6 months' rent of $ 19,200 was collected inadvance and credited to unearned rental revenue. At December 31, the amount of$1,600 representing one-half months' rent was considered to be earned and theremainder of $ 17,600 was considered to be unearned.(iii) As of December 31, the motel has earned $ 18,090 rental revenue from currentguests who will not be billed until they are ready to check out.(iv) Salaries earned by employees at December 31, but not yet paid to $ 11,640.(v) Depreciation on the motel for the year was $ 51,250.(vi) Depreciation on the station wagon owned by the motel was based on a 4-year life.The station wagon was purchased on September 1 of this current year at a cost of$12,600. Depreciation for four months should be recorded at December 31.(vii) On December 31, Cox's Bazar beach motel entered into an agreement to host thenational shooter society's convention in June of next year. The motel expects toearn rental, revenue of at least $30, 000 from the convention.Required:For each of the numbered paragraphs, draft separate adjusting entries if required. Oneor more of the above paragraphs may not require any adjusting entry.Page 2 of 4Scanned with Cam(b) The trial balance of Khalid Fabrics at December 31, 2017 shows Merchandiseinventory $50,000, Sales $340,000, Sales discounts $5,600, Cost of goods sold$250,000, Freight-out $2,500, Prepaid expense $ 15,000, Rent expense $12,800,Salaries and wages expense $42,000.Required:Prepare the closing entries for the above accounts.

Adjusting entries are those which are shown and recorded so that the entries as well as the proper…

For each of the numbered paragraphs, draft separate adjusting entries if required. One or more of the above paragraphs may not require any adjusting entry. Page 2 of 4 Scanned with Cam (b) The trial balance of Khalid Fabrics at December 31, 2017 shows Merchandise inventory $50,000, Sales $340,000, Sales discounts $5,600, Cost of goods sold $250,000, Freight-out $2,500, Prepaid expense $ 15,000, Rent expense $12,800, Salaries and wages expense $42,000. Required: Prepare the closing entries for the above accounts.

For each of the numbered paragraphs, draft separate adjusting entries if required. One or more of the above paragraphs may not require any adjusting entry. Page 2 of 4 Scanned with Cam (b) The trial balance of Khalid Fabrics at December 31, 2017 shows Merchandise inventory $50,000, Sales $340,000, Sales discounts $5,600, Cost of goods sold $250,000, Freight-out $2,500, Prepaid expense $ 15,000, Rent expense $12,800, Salaries and wages expense $42,000. Required: Prepare the closing entries for the above accounts.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 9RE: Refer to RE6-8. On April 23, 2020, McKinncy Co. receives a check, from Mangold Corporation for...

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