The adjusted trial balance for Johnson Golf Club at its October 31, 2024, year end included the following:Repairs expense 22,100/Debit Credit Cash $8,200 Prepaid expenses 4,700 Equipment 75,000Accumulated depreciation-equipment $16,200 Accounts payable 16,900 Unearned revenue 2,800 N.Johnson, capital 71.700 N. Johnson, drawings 45.500 Service revenue 131,000. Rent expense 10,500Salaries expense 72,600 Prepare closing entries. (Credit account titles are automatically indented whenamount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titlesand enter 0 for the amounts. List all debit entries before credit entries.)

The above answer can be explained as under - The first entry is for closing the revenues. The…

Answered: The adjusted trial balance for Johnson…

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

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 16RE

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X company started construction of a new office building for its own use at an estimated cost of $5 000 000 on January 1, 2022, and completed the construction on December 31, 2022. During the year of construction (2022) the company had outstanding the following debt obligations. i. Specific Construction Debt: $2 000 000 12% note issued December 31, 2021. Interest payable semiannually Other Debt: $1 400 000 10% short-term loan. Interest payable monthly and principal payable at maturity on May 30, 2023 $1 000 000 11% long-term loan. Interest payable on January 1 of each year and principal payable at maturity on January 1, 2025 Total expenditures - $5 200 000 Weighted average accumulated expenditures - $3 500 000 One of the accounting interns on the other team having reviewed the statement of financial position commented that it just did not make any sense… this ’avoidable interest’…. In reality, isn’t all interest unavoidable …. No one lends money without expecting to be compensated for…
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