ACCOUTING PRIN SET LL INCLUSIVE
14th Edition
ISBN: 9781119815327
Author: Weygandt
Publisher: WILEY
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Windsor, Inc. has the following information available for accruals for the year ended December 31, 2022. The company adjusts its
accounts annually.
The December utility bill for $365 was unrecorded on December 31. Windsor paid the bill on January 11.
Windsor is open 7 days a week and employees are paid a total of $3,010 every Monday for a 7-day (Monday-Sunday)
workweek. December 31 is a Thursday, so employees will have worked 4 days (Monday, December 28-Thursday,
December 31) that they have not been paid for by year-end. Employees will be paid next on January 4.
1.
2.
Windsor signed a $38,400, 5% bank loan on November 1, 2021, due in 2 years. Interest is payable on the first day of each
following month.
3.
Windsor receives a fee from Pizza Shop next door for all pizzas sold to customers using Windsor's facility. The amount
owed for December is $260, which Pizza Shop will pay on January 4. (Hint: Use the Service Revenue account.)
Windsor rented some of its unused warehouse space to a…
Demello & Associates records adjusting entries on an annual basis. The company has the following information available on accruals that must be recorded for the year ended December 31, 2021:
1.
Demello has a $ 14,400, 8% note receivable with a customer. The customer pays the interest on a monthly basis on the first of the month. Assume the customer pays the correct amount each month.
2.
Demello pays its employees a total of $ 6,900 every second Wednesday. Employees work a five-day week, Monday to Friday, and are paid for all statutory holidays. December 31, 2021, is a Friday. Employees were paid on Wednesday, December 29, 2021, up to the Friday of the prior week.
3.
Demello has a contract with a customer where it provides services prior to billing the customer. On December 31, 2021, this customer owed Demello $ 3,490. Demello billed the customer on January 7, 2022, and collected the full amount on January 18, 2022.
4.
Demello received the $ 495 December utility…
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