Problem 4-13A

Carla Vista Company has a September 30 fiscal year end and prepares adjusting entries on an annual basis. The trial balance included the following selected accounts:

Accumulated depreciation

$4,650

Depreciation expense

0

Interest expense

3,400

Interest payable

0

Interest receivable

0

Interest revenue

0

Salaries expense

155,000

Salaries payable

0

Additional information for its September 30, 2021, year-end adjustments:

1.

Carla Vista has a two-year, 3.5% note receivable for $4,800 that was issued on April 1, 2021. Interest is payable every six months, on October 1 and April 1. Principal is payable at maturity. Carla Vista collected the correct amount on October 1, 2021.

2.

Accrued salaries as at September 30, 2021, were $2,300. Payroll totalling $2,830 was paid on October 2, 2021.

3.

Carla Vista has a five-year, 5% note payable for $81,600 issued in 2019. Interest is payable quarterly on January 31, April 30, July 31, and October 31 each year. Carla Vista paid the correct amounts in 2021.4.

Depreciation expense for the year ended September 30, 2021, was $4,650.

Prepare T accounts and record the September 30, 2021, balances.

Prepare AAdjusting journal entries for items 1 to 4 above.(Credit account titles are automatically indented when the amount is entered.Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)

Post adjusting journal entries for items 1 to 4 above.(Post entries in the order of journal entries presented above. Round answers to 0 decimal places, e.g. 5,275.)

Prepare entries to close these revenue and expense accounts.(Credit account titles are automatically indented when the amount is entered.Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)

Post to the T accounts.Note:Do not post to the income summary account.(Post entries in the order of journal entries presented above. Round answers to 0 decimal places, e.g. 5,275. For balances ending in 0 select bal for the date and 0 for the amount for the normal balance of the account.)

prepare reversing journal entries on October 1, 2021, as appropriate.(Credit account titles are automatically indented when the amount is entered.Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)

Post reversing journal entries on October 1, 2021, as appropriate.(Post entries in the order of journal entries presented above. Round answers to 0 decimal places, e.g. 5,275.)

Prepare the journal entry to record the cash transactions that occurred in October 2021.(Credit account titles are automatically indented when the amount is entered.Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)

Post the journal entry to record the cash transactions that occurred in October 2021.(Post entries in the order of journal entries presented above. Round answers to 0 decimal places, e.g. 5,275.)