Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Blossom Paintball records adjusting entries on an annual basis. The company has the following information available on accruals that must be recorded for its year
Blossom Paintball records adjusting entries on an annual basis. The company has the following information available on accruals that must be recorded for its year ended June 30.
1. | Blossom Paintball has a 3% note payable outstanding with its bank for $57,600. Interest is payable on a monthly basis on the first of the month. (For example, interest incurred during May would be paid June 1.) | |
2. | Blossom Paintball is open seven days a week and employees are paid a total of $2,940 every Monday for a seven-day (MondaySunday) workweek. June 30, is a Wednesday so employees will have worked three days (MondayWednesday) before the year end that they have not been paid for as at June 30. Employees will be paid next on Monday, July 5. | |
3. | Blossom Paintball receives a commission from Pizza Shop next door for all pizzas sold to customers using the Blossom Paintball facility. The amount owing for June is $540, which Pizza Shop will subsequently pay on July 7. | |
4. | The June utility bill for $420 was unrecorded on June 30. Blossom Paintball paid the bill on July 9. | |
5. | Blossom Paintball sold some equipment on June 1, in exchange for a $3,600, 8% note receivable. The principal and interest are due on September 1. |
(a)
For each of the above items, prepare the adjusting entry required at June 30. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.)
No. | Date | Account Titles and Explanation | Debit | Credit |
---|---|---|---|---|
1. | June 30 | enter an account title for the adjusting entry on June 30 | enter a debit amount | enter a credit amount |
enter an account title for the adjusting entry on June 30 | enter a debit amount | enter a credit amount | ||
2. | June 30 | enter an account title for the adjusting entry on June 30 | enter a debit amount | enter a credit amount |
enter an account title for the adjusting entry on June 30 | enter a debit amount | enter a credit amount | ||
3. | June 30 | enter an account title for the adjusting entry on June 30 | enter a debit amount | enter a credit amount |
enter an account title for the adjusting entry on June 30 | enter a debit amount | enter a credit amount | ||
4. | June 30 | enter an account title for the adjusting entry on June 30 | enter a debit amount | enter a credit amount |
enter an account title for the adjusting entry on June 30 | enter a debit amount | enter a credit amount | ||
5. | June 30 | enter an account title for the adjusting entry on June 30 | enter a debit amount | enter a credit amount |
enter an account title for the adjusting entry on June 30 | enter a debit amount |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started