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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 appears
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 $70,000 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 $10,500 representing rent for the months of November through January Prepaid Rent was debited for the entire amount 3. On August 1, 2021, Grasshopper collected $15,000 in advance rent from another company that is renting a portion of Grasshopper's building. The $15,000 represents one yey's rent, and the entire amount was credited to Deferred Revenue. 4. Depreciation for the year is $19,000, 5. Salaries for the year that had been earned by employees but not paid to them or recorded is $9,000. 6. Grasshopper began the year with $19,000 in its Supplies account. During the year $63,000 in supplies were purchased and debited to the Supplies account. At year-end, supplies costing $23,000 remain on hand
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