The information necessary for preparing the 2024 year-end adjusting entries for Whiteclaw Training Academy appears below. Whiteclaw’s fiscal year-end is December 31. At the end of the year, the academy calculated that it owed $6,300 in income taxes. Those taxes won’t be paid until next April 15. Salaries earned (but not paid) from December 16 through December 31, 2024, are $3,300. On March 1, 2024, Whiteclaw lends an employee $16,500. The employee signs a note requiring principal and interest at 8% to be paid on February 28, 2025. On April 1, 2024, Whiteclaw pays an insurance company $12,360 for a two-year fire insurance policy. The entire $12,360 is debited to Prepaid Insurance at the time of the purchase. Whiteclaw uses $1,350 of supplies in 2024. A customer pays Whiteclaw $2,490 on October 31, 2024, for three months of personal training to begin November 1, 2024. Whiteclaw credits Deferred Revenue at the time of cash receipt. On December 1, 2024, Whiteclaw pays $4,950 rent to the owner of the building. The payment represents rent for December 2024 through February 2025, at $1,650 per month. Prepaid Rent is debited at the time of the payment. Required: Record the necessary adjusting entries at December 31, 2024. No prior adjustments have been made during 2024. (Do not round intermediate calculations. If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The information necessary for preparing the 2024 year-end adjusting entries for Whiteclaw Training Academy appears below. Whiteclaw’s fiscal year-end is December 31.

At the end of the year, the academy calculated that it owed $6,300 in income taxes. Those taxes won’t be paid until next April 15.
Salaries earned (but not paid) from December 16 through December 31, 2024, are $3,300.
On March 1, 2024, Whiteclaw lends an employee $16,500. The employee signs a note requiring principal and interest at 8% to be paid on February 28, 2025.
On April 1, 2024, Whiteclaw pays an insurance company $12,360 for a two-year fire insurance policy. The entire $12,360 is debited to Prepaid Insurance at the time of the purchase.
Whiteclaw uses $1,350 of supplies in 2024.
A customer pays Whiteclaw $2,490 on October 31, 2024, for three months of personal training to begin November 1, 2024. Whiteclaw credits Deferred Revenue at the time of cash receipt.
On December 1, 2024, Whiteclaw pays $4,950 rent to the owner of the building. The payment represents rent for December 2024 through February 2025, at $1,650 per month. Prepaid Rent is debited at the time of the payment.

Required:
Record the necessary adjusting entries at December 31, 2024. No prior adjustments have been made during 2024. (Do not round intermediate calculations. If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

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