Question
ConeZone Company pays salaries of $20,000 every Monday for the preceding 5-day week (Monday through Friday).Assume December 31 falls on a Wednesday, so ConeZone's employes
ConeZone Company pays salaries of $20,000 every Monday for the preceding 5-day week (Monday through Friday).Assume December 31 falls on a Wednesday, so ConeZone's employes have worked three days without being paid. In addition, ConeZone has earned$3,500 of revenue on account that has not yet been recorded.
Instructions:
- Assume the company does not use reversing entries. Prepare the December 31 adjusting entry for salaries and the entry on Monday, January 5, when ConeZone pays the payroll.
- Assume the company does use reversing entries. Prepare the December 31 adjusting entry for salaries, the January 1reversing entry, and the entry on Monday, January 5, when ConeZone pays the payroll.
- Assume the company does not use reversing entries. Prepare the December 31 adjusting entry for service revenue,and the entry on Tuesday, January 6, when ConeZone receives the cash.
- Assume the company does use reversing entries. Prepare the December 31 adjusting entry for service revenue, theJanuary 1 reversing entry, and the entry on Tuesday, January 6, when ConeZone receives the cash.
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
Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
9th Edition
978-0470317549, 9780470387085, 047031754X, 470387084, 978-0470533475
