Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Now that you have finished recording the remaining transactions for 2022, April has asked you to begin working on some of the end of year
Now that you have finished recording the remaining transactions for 2022, April has asked you to begin working on some of the end of year accounting activities. You have obtained the information below from Charlotte Addison, April's assistant, to aid you with creating the necessary adjusting entries. a) A hand count shows $16,300 of cleaning supplies on hand at the end of the year. b) The remaining prepaid rent at the end of 2022 is $1,375. c) Depreciation on cleaning equipment for 2022 is $5,750. d) As of the end of December, Charlotte Addison has earned 20 days of pay that will be paid in early January of next year. Charlotte Addison is paid a rate of $150 per day. e) A hand count shows $36,000 of office supplies on hand at the end of the year. f) The office equipment was purchased on November 1,2021 , and has a residual value of $800. The office equipment has an expected useful life of 3 years and is depreciated using straight-line depreciation. g) On January 15th, April Fresh Cleaning received a bill from the local utility company for $450. It covers utilities for October, November, and December. h) $1,200 of insurance has expired as of the end of the year, i) Accrue interest on the Note signed on November 11, 2022, for purchase of cleaning equipment. The note was for $12,000 at a rate of 5% for 180 days
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started