Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1)Principle Place determines that it has NOT yet recorded the 2020 accrual for interest revenue to be received in 2021. Assuming the amount to be

1)Principle Place determines that it has NOT yet recorded the 2020 accrual for interest revenue to be received in 2021. Assuming the amount to be recorded for 2020 is $6,000, the required adjustment at December 31, 2020, is

No adjusting entry is required.

debit Interest Revenue and credit Interest Receivable $6,000.

debit Interest Receivable and credit Interest Revenue $6,000.

debit Interest Payable and credit Interest Revenue $6,000.

2)On September 1, 2020, Regal Corp. made the annual lease payment of $24,000 for its fleet of delivery trucks. The payment covered the period September 1, 2020 to August 31, 2021. Assuming the entire amount had originally been debited to Lease Expense, the required adjustment at December 31, 2020 is

debit Prepaid Lease and credit Lease Expense $8,000.

debit Lease Expense and credit Prepaid Lease $16,000.

debit Prepaid Lease and credit Lease Expense $16,000.

debit Lease Expense and credit Prepaid Lease $8,000.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Information Systems

Authors: Steven M. Bragg

2nd Edition

164221079X, 9781642210798

More Books

Students also viewed these Accounting questions

Question

6. List and explain important trends in compensation management.

Answered: 1 week ago

Question

What are our strategic aims?

Answered: 1 week ago