Dec. 31Interest ExpenseInterest Payable(To record interest.)Bank Loan PayableCurrent Portion of Long-Term Debt(To record reclassification of current portion of bank loan.)2021Jan. 2Wages PayableCash View PoliciesCurrent Attempt in ProgressLyrtricks Ltd., which has a December 31 year end, had the following transactions in December 2020 and January 2021:2020The company borrowed $135,000 from a bank on a five-year loan payable. The terms of the loan stipulate thatLyrtricks must repay 1/5 of the principal every November 30 plus the interest accrued to that date. The loan bearsinterest at 8% per annum.Dec. 1Recorded employee wages for December. The wages earned by employees amounted to $9,900, and the.companywithheld CPP of $570, El of $481, and income taxes of $2,000. Lyrtricks' employer contributions were $570 for CPPand $673 for EI.Dec. 31Dec. 31Recorded the adjusting entry to record the interest incurred on the bank loan during December.Dec. 31Recorded the entry to reclassify the current portion of the bank loan.2021Paid the wages recorded on December 31.Made the remittance to the government related to the December 31 payroll.Jan. 2Jan. 15hit antrieg frct follouad by credit entries Credit accou

Bank loan can be defined as taking the funds from the financial institutions by the business…

Answered: yrtricks Ltd., which has a December 31…

Business

Accounting

yrtricks Ltd., which has a December 31 year end, had the following transactions in December 2020 and January 2021:

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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Concept explainers

Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.

Question

Dec. 31
Interest Expense
Interest Payable
(To record interest.)
Bank Loan Payable
Current Portion of Long-Term Debt
(To record reclassification of current portion of bank loan.)
2021
Jan. 2
Wages Payable
Cash

View Policies
Current Attempt in Progress
Lyrtricks Ltd., which has a December 31 year end, had the following transactions in December 2020 and January 2021:
2020
The company borrowed $135,000 from a bank on a five-year loan payable. The terms of the loan stipulate that
Lyrtricks must repay 1/5 of the principal every November 30 plus the interest accrued to that date. The loan bears
interest at 8% per annum.
Dec. 1
Recorded employee wages for December. The wages earned by employees amounted to $9,900, and the.company
withheld CPP of $570, El of $481, and income taxes of $2,000. Lyrtricks' employer contributions were $570 for CPP
and $673 for EI.
Dec. 31
Dec. 31
Recorded the adjusting entry to record the interest incurred on the bank loan during December.
Dec. 31
Recorded the entry to reclassify the current portion of the bank loan.
2021
Paid the wages recorded on December 31.
Made the remittance to the government related to the December 31 payroll.
Jan. 2
Jan. 15
hit antrieg frct follouad by credit entries Credit accou

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