qsb be 0.01 Information necessary to prepare the year-end adjusting entries appears below. f. Depreciation on the office equipment for the year is $10,000. 2. Employee salaries are paid twice a month, on the 22nd for salaries earned from the 1st through the 15th, and on the 7th of the following month for salaries earned from the 16th through the end of the month. Salaries earned from December 16 through December 31, 2024, were $1,500. 3. On October 1, 2024, Pastina borrowed $50,000 from a local bank and signed a note. The note requires interest to be paid annually on September 30 at 12%. The principal is due in 10 years. 4. On March 1, 2024, the company lent a supplier $20,000, and a note was signed requiring principal and inter- est at 8% to be paid on February 28, 2025. 5. On April 1, 2024, the company paid an insurance company $6,000 for a one-year fire insurance policy. The entire $6,000 was debited to prepaid insurance at the time of the payment. 6. $800 of supplies remained on hand on December 31, 2024. 7. The company received $2,000 from a customer in December for 1,500 pounds of spaghetti to be delivered in January 2025. Pastina credited deferred sales revenue at the time cash was received. 8. On December 1, 2024, $2,000 rent was paid to the owner of the building. The payment represented rent for December 2024 and January 2025 at $1,000 per month. The entire amount was debited to prepaid rent at the time of the payment. Required: Prepare the necessary December 31, 2024, adjusting journal entries. Refer to P 2-3 and complete the following steps: 1. Enter the unadjusted balances from the trial balance into T-accounts. 2. Post the adjusting entries prepared in P 2-3 to the accounts. 3. Prepare an adjusted trial balance. 4. Prepare an income statement and a statement of shareholders' equity for the year ended December 31, 2024, and a classified balance sheet as of December 31, 2024. Assume that no common stock was issued during the year and that $4,000 in cash dividends were paid to shareholders during the year. 5. Prepare closing entries and post to the accounts. 6. Prepare a post-closing trial balance.
qsb be 0.01 Information necessary to prepare the year-end adjusting entries appears below. f. Depreciation on the office equipment for the year is $10,000. 2. Employee salaries are paid twice a month, on the 22nd for salaries earned from the 1st through the 15th, and on the 7th of the following month for salaries earned from the 16th through the end of the month. Salaries earned from December 16 through December 31, 2024, were $1,500. 3. On October 1, 2024, Pastina borrowed $50,000 from a local bank and signed a note. The note requires interest to be paid annually on September 30 at 12%. The principal is due in 10 years. 4. On March 1, 2024, the company lent a supplier $20,000, and a note was signed requiring principal and inter- est at 8% to be paid on February 28, 2025. 5. On April 1, 2024, the company paid an insurance company $6,000 for a one-year fire insurance policy. The entire $6,000 was debited to prepaid insurance at the time of the payment. 6. $800 of supplies remained on hand on December 31, 2024. 7. The company received $2,000 from a customer in December for 1,500 pounds of spaghetti to be delivered in January 2025. Pastina credited deferred sales revenue at the time cash was received. 8. On December 1, 2024, $2,000 rent was paid to the owner of the building. The payment represented rent for December 2024 and January 2025 at $1,000 per month. The entire amount was debited to prepaid rent at the time of the payment. Required: Prepare the necessary December 31, 2024, adjusting journal entries. Refer to P 2-3 and complete the following steps: 1. Enter the unadjusted balances from the trial balance into T-accounts. 2. Post the adjusting entries prepared in P 2-3 to the accounts. 3. Prepare an adjusted trial balance. 4. Prepare an income statement and a statement of shareholders' equity for the year ended December 31, 2024, and a classified balance sheet as of December 31, 2024. Assume that no common stock was issued during the year and that $4,000 in cash dividends were paid to shareholders during the year. 5. Prepare closing entries and post to the accounts. 6. Prepare a post-closing trial balance.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:qsb be
0.01
Information necessary to prepare the year-end adjusting entries appears below.
f. Depreciation on the office equipment for the year is $10,000.
2. Employee salaries are paid twice a month, on the 22nd for salaries earned from the 1st through the 15th, and
on the 7th of the following month for salaries earned from the 16th through the end of the month. Salaries
earned from December 16 through December 31, 2024, were $1,500.
3. On October 1, 2024, Pastina borrowed $50,000 from a local bank and signed a note. The note requires interest
to be paid annually on September 30 at 12%. The principal is due in 10 years.
4. On March 1, 2024, the company lent a supplier $20,000, and a note was signed requiring principal and inter-
est at 8% to be paid on February 28, 2025.
5. On April 1, 2024, the company paid an insurance company $6,000 for a one-year fire insurance policy. The
entire $6,000 was debited to prepaid insurance at the time of the payment.
6. $800 of supplies remained on hand on December 31, 2024.
7. The company received $2,000 from a customer in December for 1,500 pounds of spaghetti to be delivered in
January 2025. Pastina credited deferred sales revenue at the time cash was received.
8. On December 1, 2024, $2,000 rent was paid to the owner of the building. The payment represented rent for
December 2024 and January 2025 at $1,000 per month. The entire amount was debited to prepaid rent at the
time of the payment.
Required:
Prepare the necessary December 31, 2024, adjusting journal entries.
Refer to P 2-3 and complete the following steps:
1. Enter the unadjusted balances from the trial balance into T-accounts.
2. Post the adjusting entries prepared in P 2-3 to the accounts.
3. Prepare an adjusted trial balance.
4. Prepare an income statement and a statement of shareholders' equity for the year ended December 31, 2024,
and a classified balance sheet as of December 31, 2024. Assume that no common stock was issued during the
year and that $4,000 in cash dividends were paid to shareholders during the year.
5. Prepare closing entries and post to the accounts.
6. Prepare a post-closing trial balance.
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