P9-1 (Algo) Recording and Reporting Current Liabilities LO9-1 Vigeland Company completed the following transactions during Year 1. Vigeland's fiscal year ends on December 31. January 15 Purchased and paid for merchandise. The invoice amount was $15,900; assume a perpetual inventory system. April 1 Borrowed $604,000 from Summit Bank for general use; signed a 10-month, 7% annual interest-bearing note for the money. June 14 Received a $15,000 customer deposit for services to be performed in the future. July 15 Performed $3,350 of the services paid for on June 14. December 12 Received electric bill for $27,060. Vigeland plans to pay the bill in early January. December 31 Determined wages of $21,000 were earned but not yet paid on December 31 (disregard payroll taxes). Required: 1. Prepare journal entries for each of these transactions. 2. Prepare the adjusting entries required on December 31. Complete this question by entering your answers in the tabs below. Required 1 No Prepare the adjusting entries required on December 31. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. 1 Required 2 2 Date X Answer is complete but not entirely correct. December 31 December 31 Wage expense Wages payable Interest expense Interest payable General Journal 33 ✓ Debit 21,000✔ 4,228,000 X Credit 21,000 4,228,000 X
P9-1 (Algo) Recording and Reporting Current Liabilities LO9-1 Vigeland Company completed the following transactions during Year 1. Vigeland's fiscal year ends on December 31. January 15 Purchased and paid for merchandise. The invoice amount was $15,900; assume a perpetual inventory system. April 1 Borrowed $604,000 from Summit Bank for general use; signed a 10-month, 7% annual interest-bearing note for the money. June 14 Received a $15,000 customer deposit for services to be performed in the future. July 15 Performed $3,350 of the services paid for on June 14. December 12 Received electric bill for $27,060. Vigeland plans to pay the bill in early January. December 31 Determined wages of $21,000 were earned but not yet paid on December 31 (disregard payroll taxes). Required: 1. Prepare journal entries for each of these transactions. 2. Prepare the adjusting entries required on December 31. Complete this question by entering your answers in the tabs below. Required 1 No Prepare the adjusting entries required on December 31. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. 1 Required 2 2 Date X Answer is complete but not entirely correct. December 31 December 31 Wage expense Wages payable Interest expense Interest payable General Journal 33 ✓ Debit 21,000✔ 4,228,000 X Credit 21,000 4,228,000 X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:P9-1 (Algo) Recording and Reporting Current Liabilities LO9-1
Vigeland Company completed the following transactions during Year 1. Vigeland's fiscal year ends on December 31.
January 15 Purchased and paid for merchandise. The invoice amount was $15,900; assume a perpetual inventory
system.
April 1
Borrowed $604,000 from Summit Bank for general use; signed a 10-month, 7% annual interest-bearing
note for the money.
Received a $15,000 customer deposit for services to be performed in the future.
June 14
July 15
Performed $3,350 of the services paid for on June 14.
December 12 Received electric bill for $27,060. Vigeland plans to pay the bill in early January.
December 31 Determined wages of $21,000 were earned but not yet paid on December 31 (disregard payroll taxes).
Required:
1. Prepare journal tries for each of these transactions.
2. Prepare the adjusting entries required on December 31.
Complete this question by entering your answers in the tabs below.
Required 1
No
Prepare the adjusting entries required on December 31.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
1
Required 2
2
Date
December 31
December 31
Wage expense
Answer is complete but not entirely correct.
Wages payable
Interest expense
Interest payable
General Journal
< Required 1
Required 2 >
Debit
21,000
4,228,000 X
Credit
21,000
4,228,000
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