Greenock company has the following information available for accruals for the year ended December 31, 2020. The company adjusts its accounts annually. a. The December utility bill for $425 was unrecorded on December 31, Greenock paid the bill on January 11. b. Greenock is open 7 days a week and employees are paid a total of $3,500 every (Monday-Sunday) workweek. December 31, is a Thursday, so employees will have worked 4 days (Monday, December 28- Thursday December 31) that they have not been paid for by year-end. Employees will be paid next on January 4. c. Greenock signed a $48,000, 5% bank loan on November 1, 2020, due in 2 years. No interest payments were made in 2020. d. Greenock receives a fee from pizza shop next door for all pizzas sold to customers using Greenock's facility. The amount owed for December is $300, which pizza shop will pay on January 4. e. Greenock rented some of its unused warehouse space to a client for $6,000 a month. Payable the first day of the following month. It received the rent for the month of December on January 2. Required: prepare the adiusting entry required at December 31

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Prepare the adjusting entry required at December 31.
Greenock
company
has the following information available for
accruals for the year ended December 31, 2020. The company
adjusts its accounts annually.
a. The December utility bill for $425 was unrecorded on
December 31, Greenock paid the bill on January 11.
b. Greenock is open 7 days a week and employees are paid a
total of $3,500 every (Monday-Sunday) workweek.
December 31, is a Thursday, so employees will have
worked 4 days (Monday, December 28- Thursday
December 31) that they have not been paid for by year-end.
Employees will be paid next on January 4.
c. Greenock signed a $48,000, 5% bank loan on November 1,
2020, due in 2 years. No interest payments were made in
2020.
d. Greenock receives a fee from pizza shop next door for all
pizzas sold to customers using Greenock's facility. The
amount owed for December is $300, which pizza shop will
pay on January 4.
e. Greenock rented some of its unused warehouse space to a
client for $6,000 a month. Payable the first day of the
following month. It received the rent for the month of
December on January 2.
Required: prepare the adjusting entry required at December 31.
Transcribed Image Text:Greenock company has the following information available for accruals for the year ended December 31, 2020. The company adjusts its accounts annually. a. The December utility bill for $425 was unrecorded on December 31, Greenock paid the bill on January 11. b. Greenock is open 7 days a week and employees are paid a total of $3,500 every (Monday-Sunday) workweek. December 31, is a Thursday, so employees will have worked 4 days (Monday, December 28- Thursday December 31) that they have not been paid for by year-end. Employees will be paid next on January 4. c. Greenock signed a $48,000, 5% bank loan on November 1, 2020, due in 2 years. No interest payments were made in 2020. d. Greenock receives a fee from pizza shop next door for all pizzas sold to customers using Greenock's facility. The amount owed for December is $300, which pizza shop will pay on January 4. e. Greenock rented some of its unused warehouse space to a client for $6,000 a month. Payable the first day of the following month. It received the rent for the month of December on January 2. Required: prepare the adjusting entry required at December 31.
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