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Please solve it ASAP. I don't have time. GotiMan is operating an entertainment business, GotiDanob Inc. The unadjusted trial balance for GotiDanob Inc. at March
Please solve it ASAP. I don't have time.
GotiMan is operating an entertainment business, GotiDanob Inc. The unadjusted trial balance for GotiDanob Inc. at March 31, 2021 had the following normal balances. The company prepares quarterly financial statements. Cash.. Debit Items $ 53300 Accounts Receivable . . 5600 Supplies 200 Prepaid Insurance .. 2600 Equipment 8700 Machinery 5400 Electricity Expense ..410 Rent Expense. 300 Depreciation Expense - Equipment Depreciation Expense - Machinery. 340 120 Credit Items $ Notes Payable 41800 Accounts Payable 3520 Interest payable. 1000 Unearned Service Revenue . . 3600 GotiMan, Capital 19000 Service Revenue 3300 Interest Revenue 670 Other Data: Adjustments: 1. GotiDanob Inc. has 9 salaried employees. Salaries are paid every Thursday for the current week. 4 employees receive a salary of $300 each per week, while the rest of the employees receive a salary of $700 each per week. Employees work five days a week (Sunday to Thursday) and they do not work on weekends (Friday and Saturday). Assume March 31 is a Monday. All the employees work through March 31st. 2. GotiDanob Inc. has separate insurance policies on its equipment and its machinery. Policy ABC on the equipment, which was purchased on March 1, 2020 for $2600, has a term of one year. Policy XYZ on the machinery, which was purchased on March 1, 2021 for $3900, has a term of three years. 3. The annual interest rate on Notes Payable is 15 %. (The Notes Payable was issued on February 1, 2021) Errors: 1. A payment for Electricity Expense was recorded as $230 instead of $530. 2. A debit posting of $2700 to the Accounts Receivable account was made twice. Instructions: (a) Journalize the adjusting entries for the 3-month period January 1, 2021-March 31, 2021. (b) Journalize the correcting entries for the 3-month period January 1, 2021-March 31, 2021. (c) Journalize the closing entries for Interest Revenue, Electricity Expense and Salaries Expense for the 3-month period January 1, 2021-March 31, 2021Step by Step Solution
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