can someone help with fact set 2?
Page 12 of 17 Page 9 of 17 Problem #2: Year-End Adjusting Entries (54 points) The con Candy, a wholesale distributor of penny candy and other novelties, is a calendar-year corporation The Company also provides consulting and research Services under various types of contracts to purveyors conate products. The company records adjusting entries annually immediately prior to preparing its GAAP Presented below are seven fact sets that require adjusting entries at December 31, 2020. Some fact sets Problem Set #2 financial . Required: Journal entries and the appropriate adjusting entries in proper general Journal form. wou recerte clearly present supporting calculations when requested. An unsupported correct answer cash. Therefore, you will not post the cash portion of the entries. Throughout this problem you will record Journal entries involving cash. I did not provide T-accounts for You should only use these accounts from the chart of accounts of Gandee Candy: Accounts Receivable Interest Expense Office Supplies Expense Accounts Payable Interest Receivable Prepaid Advertising Accumulated Depreciation Interest Revenue Prepaid Insurance Advertising Expense Interest Payable Prepaid Rent Cash Notes Payable Prepaid Salaries Consulting Revenue Notes Receivable Deferred Consulting Revenue Office Equipment Research Services Revenue Depreciation Expense Office Equipment Expense Salaries Expense Insurance Expense Office Supplies Salaries Payable Be aware that you will not use every account listed above in your entries. ces frorp NOT Rent Revenue Do Problem Set #2 Page 11 of 17 Fact Set #2 (16 points) On September 1, 2020, Gandee Candy borrowed $240,000 from its bank and issued a 6-month promissory note bearing 6.8% Interest. Under the terms of the note, interest is due quarterly on December 1 and March 1, 2021 and principal is due to the bank at maturity on March 1, 2021. Prepare the required journal entry to record the loan received from the bank on September 1, 2020. Post the entry to the applicable T-account(s). (2 points) DATE ACCOUNT NAMES DEBIT CREDIT On December 1, 2020, Gandee Candy made the first quarterly interest payment to the bank on the note. Prepare the required journal entry to record the interest payment. Post the entry to the applicable T- accounts. (3 points) DATE ACCOUNT NAMES DEBIT CREDIT Supporting Computation Required: Interest Expense Notes Payable -0- 2020 Interest Payable Problem Set #2 Page 12 of 17 At December 31, 2020, Gandee Candy determined that it must accrue the interest due to the bank on the note since the first interest payment made on December 1. Prepare the required adjusting journal entry to record the interest. Post the entry to the applicable T- accounts and compute their resulting balances. (4 points) ADJUSTING ENTRY: DATE ACCOUNT NAMES DEBIT CREDIT Supporting Computation Required: Indicate the names of the accounts and their balances from above that Gandee Candy would report in its GAAP financial statements for fiscal year 2020. DO NOT INCLUDE CASH (3 points) Balance Sheet at December 31, 2020: Amount Current Liabilities: Amount Income Statement for the year ended December 31, 2020: On March 1, 2021, Gandee Candy issued a check to its bank in full settlement of the principal and interest due on the note. Prepare the required journal entry to record the settlement of the note and interest due. (4 points) DATE ACCOUNT NAMES DEBIT CREDIT Supporting Computation Required
