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all 12 thank you Assume it is now December 31, 2021, and Nicole has just completed her first year of operations at Nicole's Getaway Spa.
all 12 thank you
Assume it is now December 31, 2021, and Nicole has just completed her first year of operations at Nicole's Getaway Spa. After lookin through her trial balance, she noticed that there are some items that have either not been recorded or are no longer up-to-date. a. Nicole's Getaway Spo is renting its space at a cost of $540 per month. On September 1, 2021, Nicole paid eight months' rent in advance using cash. This prepayment was recorded in the account Prepaid Rent back in September. b. The bullding, purchased at the beginning of the year for $41,000 cash, has estimated depreciation of $1,400 for 2021 , but none ha been recorded yet. c. Salaries and wages to the support staff at Nicole's Getaway Spa have been paid up to December 26, 2021. The support staff worked both December 27 and 28 and wil be poid on Januory 5, 2022. Salaries ond wages amount to $1,100 per day. The spa was closed December 29 to 31 d. The insuronce policy, purchased on June 1 for $2,640cash. provides coverage for 12 months. The part of the insurance coverage for June to December has now been used up e. The unadjusted amount in the Spo Supplies occount was $1,400 at December 31, 2021, for supplies purchased on account A yearend count showed $640 of supplies remain on hand. f On the last day of December, o customer obtoined spa secvices by using a $80 gft certificate that was purchased earlier in the month Use of the gift centicate to pay for these services had not yet been recorded Required: 1. For each of the tems listed obove, identify whether an acciuol adjustment of deferral adiustment, or no adjustment is reguired 2. For each of the deferal adjustments, prepare the initial oumbl entry that would hove been recorded 3. Prepare the adjusting Journal entries that should be recorded for Nicole's. Getoway Spo at December 31, 2021, assuming that the rems have nor been adjusted prior to December 31, 2021 For each of the deferral adjustments, prepare the initial journal entry that would have been recorded. (If no transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet Record renting of spa space at a cost of $540 per month. On September 1 , 2021, Nicole paid eight months' rent in advance using cash. This prepayment was recorded in the account Prepaid Rent back in September. Notei Enter debits before credite. Journal entry worksheet 2 3 Record the adjusting entry for the renting of spa space at the a cost of $540 per month. On September 1, 2021, Nicole paid eight months' rent in advance using cash. This prepayment was recorded in the account Prepaid Rent back in September. Note: Enter debits before credits Step by Step Solution
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