Question
Carla Vista Company has a September 30 fiscal year end and prepares adjusting entries on an annual basis. The trial balance included the following selected
Carla Vista Company has a September 30 fiscal year end and prepares adjusting entries on an annual basis. The trial balance included the following selected accounts:
| Accumulated depreciation | $4,650 | |
| Depreciation expense | 0 | |
| Interest expense | 3,400 | |
| Interest payable | 0 | |
| Interest receivable | 0 | |
| Interest revenue | 0 | |
| Salaries expense | 155,000 | |
| Salaries payable | 0 |
Additional information for its September 30, 2021, year-end adjustments:
| 1. | Carla Vista has a two-year, 3.5% note receivable for $4,800 that was issued on April 1, 2021. Interest is payable every six months, on October 1 and April 1. Principal is payable at maturity. Carla Vista collected the correct amount on October 1, 2021. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2. | Accrued salaries as at September 30, 2021, were $2,300. Payroll totalling $2,830 was paid on October 2, 2021. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3. | Carla Vista has a five-year, 5% note payable for $81,600 issued in 2019. Interest is payable quarterly on January 31, April 30, July 31, and October 31 each year. Carla Vista paid the correct amounts in 2021. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4. | Depreciation expense for the year ended September 30, 2021, was $4,650. Post adjusting journal entries for items 1 to 4 above. (Post entries in the order of journal entries presented above. Round answers to 0 decimal places, e.g. 5,275.)
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
10th Edition
1119491630, 978-1119491637, 978-0470534793
