Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Four transactions are given below that were completed during 2020 by Bromance Company. The annual accounting period ends December 31. Each transaction requires an adjusting

image text in transcribed
image text in transcribed
Four transactions are given below that were completed during 2020 by Bromance Company. The annual accounting period ends December 31. Each transaction requires an adjusting entry at December 31, 2020. A. On December 31, 2020, Bromance Company owed employees $4,200 for wages that were earned by them during December and were not recorded. Required: Prepare the December 31, 2017 adjusting entry: B. During 2020, Bromance Company purchased office supplies that cost $3,800 which were placed in the supplies room for use as needed. The purchase was recorded as follows: Office supplies expense $3,800 Cash 3,800 At the beginning of 2020, the inventory of unused office supplies was $675. At the end of 2020, a count showed unused office supplies in the supply room amounting to $525. Required: Prepare the December 31, 2020 adjusting entry: C. On December 1, 2020, Bromance Company rented some office space to another party, Bromance collected $3,900 rent for the period December 1, 2020, to March 1, 2021. The rent collected was recorded as follows: December 1, 2020: Cash $3,900 Rent revenue 3.900 C.On December 1, 2020, Bromance Company rented some office space to another party. Bromance collected $3,900 rent for the period December 1, 2020, to March 1, 2021. The rent collected was recorded as follows: December 1, 2020 Cash $3,900 Rent revenue 3,900 Required: Prepare the December 31, 2020 adjusting entry. D. On September 1, 2020, Bromance Company borrowed $20,000 cash on a one-year, 6% interest-bearing, note payable. The interest is payable on the due date, August 31, 2021. The note was recorded as follows: May 1, 2020: $20,000 Notes payable 20,000 Cash Required: Prepare the December 31, 2020 adjusting entry

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Controllers Toolkit

Authors: Christine H. Doxey

1st Edition

1119700647, 9781119700647

More Books

Students also viewed these Accounting questions