help in detail 1a. Provide the adjusting journal entries that Cairo would record on 12/31/2020.Account nameDebitCredit ●12/31/2020, the end of its fiscal year. Cairo adjusts its accounts on an annual basis.1. The Cairo Company had the following account balances on its unadjusted trial balance atAccountCashInventoryPrepaid AdvertisingEquipmentAccumulated DepreciationNotes PayableCommon StockRetained EarningsSales RevenueCost of Goods SoldSalary ExpenseRent ExpenseTotal.Debit130,00037,00025,000168,000300,000120,00042,000822,000Credit822,000Additional information:On 11/30/2020, Cairo paid $42.000 for a one year rent contract. The rent contract runs12/1/2020 through 11/30/2021.• On 7/1/2020, Cairo borrowed $200,000 from the bank. The note requires principal andinterest at 8% to be paid on 7/1/2021.56,000200,00040,00026,000500,000Cairo uses straight-line depreciation for its equipment. The estimated useful life of theequipment is 6 years and the estimated residual value is zero.The Cairo Co. began 2020 with no balance in Prepaid Advertising. Of the payments foradvertising made in 2020, $12,000 of it was paid in advance.

Adjusting Entry – Adjusting Entries are the entries that make the accrual principle work for the…

Notes Payable Common Stock Retained Earnings Sales Revenue Cost of Goods Sold Salary Expense Rent Expense Total 12/31/2020, the end of its fiscal year. Cairo adjusts its accounts on an annual basis. 1. The Cairo Company had the following account balances on its unadjusted trial balance at Account Cash Inventory Prepaid Advertising Equipment Accumulated Depreciation • . ● Debit 130,000 37,000 25,000 168,000 300,000 120,000 42,000 822,000 Credit Additional information: On 11/30/2020, Cairo paid $42.000 for a one year rent contract. The rent contract runs 12/1/2020 through 11/30/2021. On 7/1/2020, Cairo borrowed $200,000 from the bank. The note requires principal and interest at 8% to be paid on 7/1/2021. Cairo uses straight-line depreciation for its equipment. The estimated useful life of the equipment is 6 years and the estimated residual value is zero. • The Cairo Co. began 2020 with no balance in Prepaid Advertising. Of the payments for advertising made in 2020, $12,000 of it was paid in advance. 56,000 200,000 40,000 26,000 500,000 822,000

Notes Payable Common Stock Retained Earnings Sales Revenue Cost of Goods Sold Salary Expense Rent Expense Total 12/31/2020, the end of its fiscal year. Cairo adjusts its accounts on an annual basis. 1. The Cairo Company had the following account balances on its unadjusted trial balance at Account Cash Inventory Prepaid Advertising Equipment Accumulated Depreciation • . ● Debit 130,000 37,000 25,000 168,000 300,000 120,000 42,000 822,000 Credit Additional information: On 11/30/2020, Cairo paid $42.000 for a one year rent contract. The rent contract runs 12/1/2020 through 11/30/2021. On 7/1/2020, Cairo borrowed $200,000 from the bank. The note requires principal and interest at 8% to be paid on 7/1/2021. Cairo uses straight-line depreciation for its equipment. The estimated useful life of the equipment is 6 years and the estimated residual value is zero. • The Cairo Co. began 2020 with no balance in Prepaid Advertising. Of the payments for advertising made in 2020, $12,000 of it was paid in advance. 56,000 200,000 40,000 26,000 500,000 822,000

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

Define benchmarking
Define call provision
how to analyze system development
Define Prepayments.
list and define the enhancing qualities of useful information
Briefly explain the importance of conceptual or internal mapping in DBMS
what is posting system in detail ?
Explain prospectus
Explain planning decisions.