Question
Sarasota and Associates records adjusting entries on an annual basis. The company has the following information available on accuals that must be recorded for the
Sarasota and Associates records adjusting entries on an annual basis. The company has the following information available on accuals that must be recorded for the year ended DEcember 31, 2024:
1. sarasota has a $14,400, 8 % not 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. sarasota pays its employees a total of $6,800 every second Friday. Employees work a five-day week, Monday to Friday, and are paid for all statutory holidays. Assume December 31, 2024 is a Friday. Employees were last paid up to the Friday of the prior week.
3. Sarasota has a contract with a customer where it provides services prior to billing the customer. On December 31 24, this customer owed Sarasota $3,310. sarasota billed the customer on january 7, 2025 and collected the full amount on january 18, 2025.
4. Sarasota received the $490 December utility bill on January 10, 2025. The bill was paid on its due date, January 22,2025.
5. Sarasota has a $26,400, 5% note payable. Interest is paid every six months, on April 30 and October 31. Assume that Sarasota made the correct interest payments on april 30, 2024, and October 31, 2024.
No date Accounts Titles and explanation Debit Credit
1 Dec 31 --------------------------------------- ------- ----
2 Dec 31 -------------------------------------- --------- -----
3. Dec 31 ------------------------------------- -------- -----
4 Dec 31 ----------------------------------------- ------- -----
5 Dec 31 ---------------------------------------- -------- -----
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