INTER. ACCOUNTING - CONNECT+ALEKS ACCESS
10th Edition
ISBN: 9781264770335
Author: SPICELAND
Publisher: MCG
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Use the information to prepare adjusting entries as of December 31, 2019.
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TNT CORP HAS THE FOLLOWING STOCK OPTION INFORMATION:
OPTIONS GRANTED
8,000,000
GRANT DATE
1/1/2018
PAR VALUE/UNIT
EXERCISE PRICE
VESTING DATE
EXPIRATION DATE
FV/UNIT OPTION
OPTIONS EXERCISED
EXERCISE DATE
MARKET PRICE
1
21
12/31/2021
12/31/2026
4.55
4,210,000
7/11/2024
36.5
Use the following information to provide the adjusting journal entry that Chipotle should have made on December 31, 2020which was the end of the fiscal year 2020. Assume that Chipotle makes adjusting entries once a year at fiscal year end.
At the end of fiscal year 2020, Chipotle owed employees $203 million related to work completed (but not yet paid) during fiscal year 2020. What adjusting journal entry should Chipotle make on December 31, 2020 related to these wages owed to employees?
Account Title
Debit
Credit
Salary expense
203
Salary payable
203
At the end of fiscal year 2020, Chipotle calculates that it has $105 million in sales on account that have not yet been received or recorded. What adjusting journal entry should Chipotle make on December 31, 2020 related to the sales on account?
Account Title
Debit
Credit
Accounts receivable
105
Sales revenue
105
Chipotle receives a utility bill every four weeks…
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