Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

6 The information necessary for preparing the 2021 year-end adjusting entries for Bearcat Personal Training Academy appears below. Bearcat's fiscal year-end is December 31. eBook

image text in transcribed

6 The information necessary for preparing the 2021 year-end adjusting entries for Bearcat Personal Training Academy appears below. Bearcat's fiscal year-end is December 31. eBook 1. Depreciation on the equipment for the year is $7,000. 2. Salaries earned (but not paid) from December 16 through December 31, 2021, are $4,000. 3. On March 1, 2021, Bearcat lends an employee $20,000. The employee signs a note requiring principal and interest at 9% to be paid on February 28, 2022 4. On April 1, 2021, Bearcat pays an insurance company $13,200 for a two-year fire insurance policy. The entire $13,200 is debited to Prepaid Insurance at the time of the purchase. 5. Bearcat uses $1,700 of supplies in 2021. 6. A customer pays Bearcat $2,700 on October 31, 2021, for three months of personal training to begin November 1, 2021. Bearcat credits Deferred Revenue at the time of cash receipt. 7. On December 1, 2021, Bearcat pays $6,000 rent to the owner of the building. The payment represents rent for December 2021 through February 2022, at $2,000 per month. Prepaid Rent is debited at the time of the payment. Required: Record the necessary adjusting entries at December 31, 2021. No prior adjustments have been made during 2021. (Do not round intermediate calculations. If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Depreciation on the equipment for the year is $7,000. Record the adjusting entry for depreciation at its year-end of December 31. Note: Enter debits before credits. General Journal Debit Credit Date December 31

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

Principles Of External Auditing

Authors: Brenda Porter, David Hatherly, Jon Simon

3rd Edition

0470018259, 9780470018255

More Books

Students also viewed these Accounting questions