chapter 3

Monty 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 $565 was unrecorded on December 31 . Monty paid the bill on January 11. 2. Monty is open 7 days a week and employees are paid a total of $4,550 every Monday for a 7-day (Monday-Sunday) workweek. December 31 is a Thursday, so employees will have worked 4 days (Monday, December 28-Thursday, December 31) that they have not been paid for by year end. Employees will be paid next on January 4. 3. Monty signed a $58.500,8% bank loan on November 1, 2021, due in 2 years. Interest is payable on the first day of each following month. (For example, interest incurred during November would be paid on December 1) 4. Monty receives a fee from Pizza Shopnext door for all pizzas sold to customers using Monty's facility. The amount owed for December is $390, which Piza Shop will pay on January 4. (Hint: Use the Service Revenue account) 5. Monty rented some of its unused warehouse space to a client for $7,800 a month, payable the first day of the following month. It received the rent payment for the month of December on January 2. For each situation, prepare the journal entry to record the subsequent cash transaction in 2023. (Round answers to 0 decimal places, es. 5,275. Credit occount fites are automatically indented when the amount is entered. Do not indent manually.)