Question
(12 points) Credit Company had the following adjustments on December 31, 2020, the end of the accounting period. Please journalize the adjusting entry for each
(12 points) Credit Company had the following adjustments on December 31, 2020, the end of the accounting period. Please journalize the adjusting entry for each of the following activity. a. Credit Company pays its employees a weekly (5 working days) salary each Friday. Salaries for each week total $25,000. December 31, the companys year-end, falls on a Thursday. b. On September 1, 2020, Credit Company collected $12,000 in advance for a consulting contract, which is to be earned evenly over the next 12 months. The original entry debited cash and credited unearned revenue. Credit Company calculated the amount of revenue earned during the year of 2020 and recorded one adjusting entry at year end. c. Credit Company had $500 supplies balance at beginning of 2020. In 2020 it purchased $9,000 supplies. At the end of year 2020, the ending balance of supplies was $750. Credit Company calculated the amount of supplies used during the year of 2020 and recorded one adjusting entry at year end. d. Credit Company calculated depreciation for its equipment $8,000 and recorded one adjusting entry at year end.
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