The following transactions occurred during December 31, 2021, for the Falwell Company. 1. A three-year fire insurance policy was purchased on July 1, 2021, for $13,320. The company debited insurance expense for the entire amount. 2. Depreciation on equipment totaled $13,0000 for the year. 3. Employee salaries of $18,500 for the month of December will be paid in early January 2022. 4. On November 1, 2021, the company borrowed $230,000 from a bank. The note requires principal and interest at 12% to be paid on April 30, 2022. 5. On December 1, 2021, the company received $6,900 in cash from another company that is renting office space in Falwell's building. The payment, representing rent for December, January, and February was credited to deferred rent revenue. 6. On December 1, 2021, the company received $6,900 in cash from another company that is renting office space in Falwell's building. The payment, representing rent for December, January, and February was credited to rent revenue rather than deferred rent revenue for $6,900 on December 1, 2021. Prepare the necessary adjusting entries for each of the above situations. Assume that no financial statements were prepared during the year and no adjusting entries were recorded. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list
The following transactions occurred during December 31, 2021, for the Falwell Company. 1. A three-year fire insurance policy was purchased on July 1, 2021, for $13,320. The company debited insurance expense for the entire amount. 2. Depreciation on equipment totaled $13,0000 for the year. 3. Employee salaries of $18,500 for the month of December will be paid in early January 2022. 4. On November 1, 2021, the company borrowed $230,000 from a bank. The note requires principal and interest at 12% to be paid on April 30, 2022. 5. On December 1, 2021, the company received $6,900 in cash from another company that is renting office space in Falwell's building. The payment, representing rent for December, January, and February was credited to deferred rent revenue. 6. On December 1, 2021, the company received $6,900 in cash from another company that is renting office space in Falwell's building. The payment, representing rent for December, January, and February was credited to rent revenue rather than deferred rent revenue for $6,900 on December 1, 2021. Prepare the necessary adjusting entries for each of the above situations. Assume that no financial statements were prepared during the year and no adjusting entries were recorded. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following transactions occurred during December 31, 2021, for the Falwell Company.
1. A three-year fire insurance policy was purchased on July 1, 2021, for $13,320. The company debited insurance expense for the
entire amount.
2. Depreciation on equipment totaled $13,000 for the year.
3. Employee salaries of $18,500 for the month of December will be paid in early January 2022.
4. On November 1, 2021, the company borrowed $230,000 from a bank. The note requires principal and interest at 12% to be paid on
April 30, 2022.
5. On December 1, 2021, the company received $6,900 in cash from another company that is renting office space in Falwell's building.
The payment, representing rent for December, January, and February was credited to deferred rent revenue.
6. On December 1, 2021, the company received $6,900 in cash from another company that is renting office space in Falwell's building.
The payment, representing rent for December, January, and February was credited to rent revenue rather than deferred rent
revenue for $6,900 on December 1, 2021.
Prepare the necessary adjusting entries for each of the above situations. Assume that no financial statements were prepared during
the year and no adjusting entries were recorded. (If no entry is required for a transaction/event, select "No journal entry required" in
the first account field.)
View transaction list
Transcribed Image Text:Journal entry worksheet
1
2
3
4 5 6
>
A three-year fire insurance policy was purchased on July 1, 2021, for $13,320.
The company debited insurance expense for the entire amount.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
1
Record entry
Clear entry
View general journal
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