Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I'm not sure where I went wrong Prepare the journal entries to record the 2021 transactions for items 1 through 6. (Credit account titles are

I'm not sure where I went wrong

image text in transcribedimage text in transcribed
Prepare the journal entries to record the 2021 transactions for items 1 through 6. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to the nearest whole dollar, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit June 1 Cash 25,200 Accounts Payable 25,200 June 10 Supplies 1,845 Cash 1,845 July Unearned Revenue 103,400 Service Revenue 103,400 Aug. 1 Equipment 51,840 Cash 51,840 Dec. 10 Accounts Receivable 935 Rent Revenue 935 Dec. 29 Salaries Expense 4,440 Cash 4,440The following independent items for Last Planet Theatre during the year ended December 31, 2021, may require a transaction journal entry, an adjusting entry, or both. The company records all prepaid costs as assets and all unearned revenues as liabilities and adjusts accounts annually. 1. Supplies on hand amounted to $315 on December 31, 2020. On June 10, 2021, additional supplies were purchased for $1,345 cash. On December 31, 2021, a physical count showed that supplies on hand amounted to $830. Purchased equipment on August 1, 2021,1'or $51,340 cash. The equipment was estimated to have a useful life of 12 years. Last Planet Theatre puts on eight plays each season. Season tickets sell for $440 each and 235 sold in July for the upcoming 20212022 season, which begins in September 2021 and ends in April 2022 {one play per month). Last Planet Theatre credited Unearned Revenue for the full amount received. Every Wednesday, the total payroll is $4,440 for salaries earned duringthe previous workweek l[MondayFriday]. Salaries were last paid on Wednesday, December 29. This year, December 3 1fa||s on a Friday. Last Planet Theatre rents the theatre to a local children's choir, which uses the space for rehearsals twice a week at a rate of $935 per month.The choirwas short ofcash at the beginning of December and sent Last PlanetTheatre a chequefor $525 on December 10, and a promise to paythe balance in January. On January 10, 2022, Last Planet Theatre received a cheque for the balance owing from December. At this time, the January rent was also paid. On June 1, 2021, the theatre borrowed $25,200from its bank at an annual interest rate of 5.0%. The principal and interest are to be repaid on May 30, 2022. Upon reviewing its accounting records on December 31, 2021, the theatre noted that the telephone bill for the month of December had not yet been received. A call to the phone company determined that the December telephone bill was $520. The bill was paid on January 12, 2021

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

Financial Statement Analysis And Security Valuation

Authors: Stephen H Penman

4th Edition

0073379662, 9780073379661

More Books

Students also viewed these Accounting questions

Question

2. It is the results achieved that are important.

Answered: 1 week ago

Question

7. One or other combination of 16.

Answered: 1 week ago