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Need help with adjusting entries (mainly interest computations). ++EXCEL 1 Assignment - July 2021 Wilson Company's fiscal year-end is December 31. The unadjusted trial balance
Need help with adjusting entries (mainly interest computations).
++EXCEL 1 Assignment - July 2021 Wilson Company's fiscal year-end is December 31. The unadjusted trial balance as of December 31, 2020 appears Information necessary to prepare the year-end adjusting entries appear below: 1. The equipment is depreciated on a straight-line basis, no salvage, eight-year life. 2. The company estimates that $5,500 of the outstanding accounts receivable probably will not be collected. 3. Employee wages are paid twice a month and wages earned from the last two weeks in December which will be paid in January total $1,500. 4. The $50,000 note payable was borrowed on October 1,2020 at a 12% interest rate. Interest is to be paid annually on September 30 . 5. On March 1, 2020 the company lent a supplier $20,000 and a note was signed requiring the principal and interest at 8% to be paid on February 28,2021. 6. On April 1,2020 , the company paid an insurance company $6,000 for a two-year fire insurance policy. The entire $6,000 was debited to insurance expense. 7. $800 of supplies remained on hand at 12/31/20. 8. A customer paid Wilson $2,000 in December for a product to be manufactured and delivered in Jan 2021. Wilson recorded the entire $2,000 in Sales Revenue. 9. On December 1 , Wilson paid $2,000 rent for December \& January at $1,000 per month. 10. For the purposes of this exercise, ignore income taxesStep by Step Solution
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