Problem 3-3B Record adjusting entries (LO3-3) The information necessary for preparing the 2021 year-end adjusting entries for Bearcat Personal Training Academy appears below Bearcat's fiscal year end is December 31 1. Depreciation on the equipment for the year is $6,600, 2. Salaries earned (but not paid) from December 16 through December 31, 2021, are $3,600 3. On March 1, 2021, Bearcat lends an employee $18,000 The employee signs a note requiring principal and interest at 8% to be paid on February 28 2022 4. On April 1, 2021. Bearcat pays an insurance company $12.720 for a two-year fire insurance policy The entire 512720 is debited to Prepaid Insurance at the time of the purchase 5. Bearcat uses $1,500 of supplies in 2021 6. A customer pays Bearcat $2.580 on October 31, 2021 for three months of personal training to begin November 1, 2021. Bearcat credits Deferred Revenue at the time of cash receipt 7 On December 1, 2021, Bearcat pays $5 400 rent to the owner of the buifcling The payment represents rent for December 2021 through February 2022, at $1.800 per month. Prepaid Rent is debited at the time of the payment Required: Record the necessary adjusting entries at December 31, 2021 No prior adjustments have been made during 2021 (Do not found intermediate colculotions. If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet 1 2 3 4 5 6 7 Depreciation on the equipment for the year is $6,600. Record the adjusting entry for depreciation at its year-end of December 31. Note: Enter debits before credits Date Debit Credit General Journal Accumulated Depreciation December 31 6,600 Record entry Clear entry View general journal Journal entry worksheet 2 3 4 5 6 7 > Salaries earned (but not paid) from December 16 through December 31, 2021, are $3,600. Record the adjusting entry for salaries at its year-end of December 31. Note: Enter debits before credits. Date General Journal Debit Credit December 31 Record entry Clear entry View general journal Journal entry worksheet On March 1, 2021, Bearcat lends an employee $18,000. The employee signs a note requiring principal and interest at 8% to be paid on February 28, 2022. Record the adjusting entry for interest at its year-end of December 31. Note: Enter debits before credits. General Journal Date December 31 Debit Credit Record entry Clear entry View general journal Journal entry worksheet On April 1, 2021, Bearcat pays an insurance company $12,720 for a two-year fire insurance policy. The entire $12,720 is debited to Prepaid Insurance at the time of the purchase. Record the adjusting entry for insurance at its year-end of December 31. Note: Enter debits before credits. Date December 31 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 2 6 Bearcat uses $1,500 of supplies in 2021. Record the adjusting entry for supplies at its year-end of December 31. Note: Enter debits before credits. Date General Journal December 31 Debit Credit Record entry Clear entry View general journal Journal entry worksheet On December 1, 2021, Bearcat pays $5,400 rent to the owner of the building. The payment represents rent for December 2021 through February 2022, at $1,800 per month. Prepaid Rent is debited at the time of the payment. Record the adjusting entry for rent at its year-end of December 31. Note: Enter debits before credits. Date General Journal Debit Credit December 31 Record entry Clear entry View general journal
