Question
Blue Spruce Corp. has the following information available for accruals for the year ended December 31, 2022. The company adjusts its accounts annually. 1. The
Blue Spruce Corp. has the following information available for accruals for the year ended December 31, 2022. The company adjusts its accounts annually.
1. | The December utility bill for $495 was unrecorded on December 31. Blue Spruce paid the bill on January 11. | |
2. | Blue Spruce is open 7 days a week and employees are paid a total of $4,060 every Monday for a 7-day (MondaySunday) workweek. December 31 is a Thursday, so employees will have worked 4 days (Monday, December 28Thursday, December 31) that they have not been paid for by year-end. Employees will be paid next on January 4. | |
3. | Blue Spruce signed a $52,200, 5% bank loan on November 1, 2021, due in 2 years. Interest is payable on the first day of each following month. | |
4. | Blue Spruce receives a fee from Pizza Shop next door for all pizzas sold to customers using Blue Spruces facility. The amount owed for December is $350, which Pizza Shop will pay on January 4. (Hint: Use the Service Revenue account.) | |
5. | Blue Spruce rented some of its unused warehouse space to a client for $6,960 a month, payable the first day of the following month. It received the rent for the month of December on January 2. |
(a)
For each situation, prepare the adjusting entry required at December 31. (Round answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
No. | Date | Account Titles and Explanation | Debit | Credit |
---|---|---|---|---|
1. | Dec. 31, 2022 | enter an account title to record the first transaction | enter a debit amount | enter a credit amount |
enter an account title to record the first transaction | enter a debit amount | enter a credit amount | ||
2. | Dec. 31, 2022 | enter an account title to record the second transaction | enter a debit amount | enter a credit amount |
enter an account title to record the second transaction | enter a debit amount | enter a credit amount | ||
3. | Dec. 31, 2022 | enter an account title to record the third transaction | enter a debit amount | enter a credit amount |
enter an account title to record the third transaction | enter a debit amount | enter a credit amount | ||
4. | Dec. 31, 2022 | enter an account title to record the fourth transaction | enter a debit amount | enter a credit amount |
enter an account title to record the fourth transaction | enter a debit amount | enter a credit amount | ||
5. | Dec. 31, 2022 | enter an account title to record the fifth transaction | enter a debit amount | enter a credit amount |
enter an account title to record the fifth transaction | enter a debit amount |
List of Accounts
- Accounts Payable
- Accounts Receivable
- Accumulated Depreciation-Buildings
- Accumulated Depreciation-Equipment
- Advertising Expense
- Amortization Expense
- Buildings
- Cash
- Common Stock
- Depreciation Expense
- Dividends
- Equipment
- Income Summary
- Income Tax Expense
- Income Taxes Payable
- Insurance Expense
- Interest Expense
- Interest Payable
- Interest Receivable
- Interest Revenue
- Land
- Maintenance and Repairs Expense
- Mortgage Payable
- No Entry
- Notes Payable
- Prepaid Advertising
- Prepaid Cleaning
- Prepaid Insurance
- Prepaid Rent
- Property Tax Expense
- Property Taxes Payable
- Rent Expense
- Rent Revenue
- Retained Earnings
- Salaries and Wages Expense
- Salaries and Wages Payable
- Sales Revenue
- Service Revenue
- Supplies
- Supplies Expense
- Ticket Revenue
- Unearned Rent Revenue
- Unearned Sales Revenue
- Unearned Service Revenue
- Unearned Ticket Revenue
- Utilities Expense
- Website
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