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Grasshopper Lawn Service provides general lawn maintenance to customers. The company's fiscal year-end is December 31. Information necessary to prepare the year-end adjusting entries
Grasshopper Lawn Service provides general lawn maintenance to customers. The company's fiscal year-end is December 31. Information necessary to prepare the year-end adjusting entries appears below. 1. On October 1, 2021, Grasshopper lent $140,000 to another company. A note was signed with principal and 8% interest to be paid on September 30, 2022. 2. On November 1, 2021, the company paid its landlord $31,500 representing rent for the months of November through January. Prepaid Rent was debited for the entire amount. 3. On August 1, 2021, Grasshopper collected $36,000 in advance rent from another company that is renting a portion of Grasshopper's building. The $36,000 represents one year's rent, and the entire amount was credited to Deferred Revenue. 4. Depreciation for the year is $26,000. 5. Vacation pay for the year that had been earned by employees but not paid to them or recorded is $16,000. The company records vacation pay as Salaries Expense. 6. Grasshopper began the year with $33,000 in its Supplies account. During the year $70,000 in supplies were purchased and debited to the Supplies account. At year-end,supplies cdsting $30,000 remain on hand.
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