Question
Each Friday, PerfectJohns pays employees for the current week's work. The amount of the weekly payroll is $7,000 for a five-day workweek. This year
Each Friday, PerfectJohns pays employees for the current week's work. The amount of the weekly payroll is $7,000 for a five-day workweek. This year December 31 falls on a Tuesday. PerfectJohns will pay its employees on January 3 On January 1 of the current year, PerfectJohns purchased an insurance policy that covers two years, $25,000 The beginning balance of Cleaning Supplies was $3,800. During the year, PerfectJohns purchased cleaning supplies for $5,300, and at December 31, the cleaning supplies on hand total $1,200. During December, PerfectJohns arranged for rentals at a Christmas and a New Year's Eve party at a resort. The client prepaid $10,000. PerfectJohns recorded this amount as Unearned Revenue. PerfectJohns estimates that the company has earned 40 percent of the total revenue during the current year and will earn the balance on January 3. On December 31, PerfectJohns had earned $3,500 of a two-month rental at the Glitter Ice Palace. The Glitter Ice Palace has stated that it will pay PerfectJohns the entire balance due for the two months on February 1. Amortization for the current year includes Equipment, $3,800, and Trucks, $1,100. Make one compound entry to record the amortization, but use separate amortization accounts for each asset. PerfectJohns has incurred $800 of interest expense on a $1,000 interest payment due on January 15 Print Dono
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