Exercise 4 17 Blue Spruce Corp has the following information available for accruals for the year ended December 31, 2017 The company adjusts its accounts annually 1 The December utility bill for $495 was unrecorded on December 31 Blue Spruce paid the bill on January 11 2 Blue Spruce is open 7 days a week and employees are paid a total of $4,060 every Monday for a 7 day (MondaySunday) workweek December 31 is a Thursday, so employees will have worked 4 days (Monday, December 28Thursday, December 31) that they have not been paid for by year end Employees will be paid next on January 4 3 Blue Spruce signed a $52,200, 5 bank loan on November 1, 2016, due in 2 years Interest is payable on the first day of each following month (For example, interest incurred during November is paid on December 1 ) 4 Blue Spruce receives a fee from Pizza Shop next door for all pizzas sold to customers using Blue Spruces facility The amount owed for December is $350, which Pizza Shop will pay on January 4 ( Hint Use the Service Revenue account ) 5 Blue Spruce rented some of its unused warehouse space to a client for $6,960 a month, payable the first day of the following month It received the rent for the month of December on January 2 For each situation, record the adjustment required at December 31 using the tabular summary that follows (Round all calculations to the nearest dollar If a transaction results in a de the particular Asset, Liability or Equity item that was reduced ) Assets Liabilities Stockholders' Equity Retained Earnings Rev Exp Cash Accts Rec Accts Pay Int Pay Com Stock Sal Wages Pay Div 2017 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Totals LINK TO TEXT For each situation, record the subsequent cash transaction in 2018 in the tabular summary from part (a) (If a transaction results in a decrease in Assets, Liabilities or Stockholders' E that was reduced ) Assets Liabilities Stockholders' Equity Retained Earnings Rev Exp Cash Accts Rec Accts Pay Int Pay Com Stock Sal Wages Pay Div 2017 Jan 11

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 25, 2024

Exercise 4-17 Blue Spruce Corp. has the following information available for accruals for the year ended December 31, 2017. The company adjusts its accounts annually.

Exercise 4-17

Blue Spruce Corp. has the following information available for accruals for the year ended December 31, 2017. The company adjusts its accounts annually.

1.		The December utility bill for $495 was unrecorded on December 31. Blue Spruce paid the bill on January 11.
2.		Blue Spruce is open 7 days a week and employees are paid a total of $4,060 every Monday for a 7-day (MondaySunday) workweek. December 31 is a Thursday, so employees will have worked 4 days (Monday, December 28Thursday, December 31) that they have not been paid for by year-end. Employees will be paid next on January 4.
3.		Blue Spruce signed a $52,200, 5% bank loan on November 1, 2016, due in 2 years. Interest is payable on the first day of each following month (For example, interest incurred during November is paid on December 1.).
4.		Blue Spruce receives a fee from Pizza Shop next door for all pizzas sold to customers using Blue Spruces facility. The amount owed for December is $350, which Pizza Shop will pay on January 4. (Hint: Use the Service Revenue account.)
5.		Blue Spruce rented some of its unused warehouse space to a client for $6,960 a month, payable the first day of the following month. It received the rent for the month of December on January 2.

image text in transcribed

For each situation, record the adjustment required at December 31 using the tabular summary that follows. (Round all calculations to the nearest dollar. If a transaction results in a de the particular Asset, Liability or Equity item that was reduced.) Assets Liabilities - Stockholders' Equity Retained Earnings Rev. - Exp. - Cash + Accts. Rec. = Accts. Pay. + Int. Pay. Com. Stock + Sal. & Wages Pay. + + Div 2017 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Totals LINK TO TEXT For each situation, record the subsequent cash transaction in 2018 in the tabular summary from part (a). (If a transaction results in a decrease in Assets, Liabilities or Stockholders' E that was reduced.) Assets Liabilities Stockholders' Equity Retained Earnings Rev. - Exp. - Cash + Accts. Rec. = Accts. Pay. + Int. Pay. Com. Stock + Sal. & Wages Pay. + + Div 2017 Jan. 11