1: Course Outline #2 and #4 Page 3 of On December 31, 2020, Doja Cat Supplies determined that it owed its employees $188,430 for services used during December 2020 that will be paid in January 2021. In get owing RED Problem Set #1: Course Outline #2 and #4 Page 2 of 19 Problem #1: Adjusting Entries (100 points) You must determine the proper GAAP treatment of the items described in six scenarios presented below. In the scenarios, you will prepare and post journal entries for one or more transactions as requested. In each scenario, you will prepare the necessary adjusting entry in general journal form and post the adjustment to the relevant T-accounts. You will need to compute the account balances to answer any follow up questions as well as to post entries for transactions in the following year when requested. Please note that you will not use all of the T-accounts provided in some scenarios. You must use Cash to record some entries. T-accounts for Cash are not provided as they would be affected by many other transactions. Therefore, you will only partially post those entries. Scenario #1: Employee Salaries (18 points) On December 31, 2019, Doja Cat Supplies reported Salaries Payable of $131,890 that represented employee salaries incurred in December 2019 to be paid in 2020. On January 10, 2020, Doja Cat Supplies paid cash of $168,950 to its employees for the amount due for December 2019 plus salaries incurred during the first four days of January 2020. Prepare the general journal entry to record the cash paid to the employees on January 10. Post the entry to the relevant T-account(s) on the following page. (4 points entry + 2 points for posting) ACCOUNT NAMES DEBIT CREDIT ha 10 podu od babi DATE OV Voor STOS DO NOW During 2020, Doja Cat Supplies paid its employees cash of $4,524,760 for their services used from January through mid-December 2020. b. Prepare the general journal entry to record the cash paid to the employees during 2020. Post the entry to the relevant T-account(s) on the following page and compute the resulting balance(s) at December 31, 2020 before adjustment. (2 points entry + 2 points for posting/balances) DATE ACCOUNT NAMES DEBIT CREDIT 2020 Problem Set #1: Course Outline #2 and #4 Page 3 of 19 On December 31, 2020, Doja Cat Supplies determined that it owed its employees $188,430 for their services used during December 2020 that will be paid in January 2021. C. Prepare the necessary adjustment for the salaries due at December 31, 2020 in general journal form. Post the adjusting entry to the relevant T-accounts on the following page and compute their balances at December 31, 2020 after adjustment. (2 points entry + 2 points for posting/balance) DATE ACCOUNT NAMES DEBIT CREDIT Salaries Payable Salaries Exoense 12/31 2019 131,890 1/1 2020 -0 Artwolltor do Invest d. Indicate the items and their amounts that Doja Cat Supplies reported relative to salaries in its 2020 GAAP financial statements. (Ignore cash.) (4 points) Amount Income Statement for the year ended December 31, 2020: Amount Balance Sheet at December 31, 2020: 1: Course Outline #2 and #4 Page 3 of On December 31, 2020, Doja Cat Supplies determined that it owed its employees $188,430 for services used during December 2020 that will be paid in January 2021. In get owing RED Problem Set #1: Course Outline #2 and #4 Page 2 of 19 Problem #1: Adjusting Entries (100 points) You must determine the proper GAAP treatment of the items described in six scenarios presented below. In the scenarios, you will prepare and post journal entries for one or more transactions as requested. In each scenario, you will prepare the necessary adjusting entry in general journal form and post the adjustment to the relevant T-accounts. You will need to compute the account balances to answer any follow up questions as well as to post entries for transactions in the following year when requested. Please note that you will not use all of the T-accounts provided in some scenarios. You must use Cash to record some entries. T-accounts for Cash are not provided as they would be affected by many other transactions. Therefore, you will only partially post those entries. Scenario #1: Employee Salaries (18 points) On December 31, 2019, Doja Cat Supplies reported Salaries Payable of $131,890 that represented employee salaries incurred in December 2019 to be paid in 2020. On January 10, 2020, Doja Cat Supplies paid cash of $168,950 to its employees for the amount due for December 2019 plus salaries incurred during the first four days of January 2020. Prepare the general journal entry to record the cash paid to the employees on January 10. Post the entry to the relevant T-account(s) on the following page. (4 points entry + 2 points for posting) ACCOUNT NAMES DEBIT CREDIT ha 10 podu od babi DATE OV Voor STOS DO NOW During 2020, Doja Cat Supplies paid its employees cash of $4,524,760 for their services used from January through mid-December 2020. b. Prepare the general journal entry to record the cash paid to the employees during 2020. Post the entry to the relevant T-account(s) on the following page and compute the resulting balance(s) at December 31, 2020 before adjustment. (2 points entry + 2 points for posting/balances) DATE ACCOUNT NAMES DEBIT CREDIT 2020 Problem Set #1: Course Outline #2 and #4 Page 3 of 19 On December 31, 2020, Doja Cat Supplies determined that it owed its employees $188,430 for their services used during December 2020 that will be paid in January 2021. C. Prepare the necessary adjustment for the salaries due at December 31, 2020 in general journal form. Post the adjusting entry to the relevant T-accounts on the following page and compute their balances at December 31, 2020 after adjustment. (2 points entry + 2 points for posting/balance) DATE ACCOUNT NAMES DEBIT CREDIT Salaries Payable Salaries Exoense 12/31 2019 131,890 1/1 2020 -0 Artwolltor do Invest d. Indicate the items and their amounts that Doja Cat Supplies reported relative to salaries in its 2020 GAAP financial statements. (Ignore cash.) (4 points) Amount Income Statement for the year ended December 31, 2020: Amount Balance Sheet at December 31, 2020