Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

All of the current year's entries for Zimmerman Company have been made, except the following adjusting entries. The company's annual accounting year ends on December

image text in transcribed

All of the current year's entries for Zimmerman Company have been made, except the following adjusting entries. The company's annual accounting year ends on December 31 a. On September 1 of the current year, Zimmerman collected six months' rent of $8,280 on storage space. At that date, Zimmerman debited Cash and credited Unearned Rent Revenue for $8,280. b. On October 1 of the current year, the company borrowed $13,200 from a local bank and signed a one-year, 13 percent note for that amount. The principal and Interest are payable on the maturity date. c. Depreciation of $1,800 must be recognized on a service truck purchased in July of the current year at a cost of $22,000. d. Cash of $3,300 was collected on November of the current year for services to be rendered evenly over the next year beginning on November 1 of the current year. Unearned Service Revenue was credited when the cash was received e. On November 1 of the current year, Zimmerman paid a one-year premium for property Insurance, $9,120, for coverage starting on that date. Cash was credited and Prepaid Insurance was debited for this amount. f. The company earned service revenue of $4,600 on a special job that was completed December 29 of the current year. Collection will be made during January of the next year. No entry has been recorded. g. At December 31 of the current year, wages earned by employees totaled $14,700. The employees will be paid on the next payroll date in January of the next year. h. On December 31 of the current year, the company estimated it owed $460 for this year's property taxes on land. The tax will be paid when the bill is received in January of next year. P4-4 Part 1 Required: 1. Indicate whether each transaction relates to a deferred revenue, deferred expense, accrued revenue, or accrued expense. Transaction On September 1 of the current year, Zimmerman collected six months' rent of $8,280 on storage space. At that date, Zimmerman debited Cash and credited Unearned Rent Revenue for 58,280. On October 1 of the current year, the company borrowed $13,200 from a local bank and signed a one-year, 13 percent note for that amount. The principal and interest are payable on the maturity date. Depreciation of $1,800 must be recognized on a service truck purchased in July of the current year at a cost of $22,000 Cash of $3,300 was collected on November of the current year for services to be rendered evenly over the next year beginning on November 1 of the current year. Unearned Service Revenue was credited when the cash was received On November 1 of the current year, Zimmerman paid a one-year premium for property insurance, $9,120, for coverage starting on that date. Cash was credited and Prepaid Insurance was debited for this amount The company earned service revenue of $4,600 on a special job that was completed December 29 of the current year. Collection will be made during January of the next year. No entry has been recorded. At December 31 of the current year, wages earned by employees totaled S14,700. The employees will be paid on the next payroll date in January of the next year. On December 31 of the current year, the company estimated it owed $460 for this year's property taxes on land. The tax will be paid when the bill is received in January of next year

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

Public Sector Accounting

Authors: Rowan Jones, Maurice Pendlebury

6th Edition

0273720368, 9780273720362

More Books

Students also viewed these Accounting questions

Question

Excel caculation on cascade mental health clinic

Answered: 1 week ago