Question 4 Plex Paintball records adjusting entries on an annual basis. The company has the following information available on accruals that must be recorded for the year ended May 31, 2017. 1. Plex Paintball has a 4% note payable with its bank for $45,000. Interest is payable on a monthly basis on the first of the month. 2. Plex Paintball is open seven days a week and employees are paid (Salary) a total of $3,220 every Monday for a seven-day (Monday- Sunday) workweek. May 31, 2017, is a Wednesday, so employees will have worked three days (Monday-Wednesday) before the year end that they have not been paid for as at May 31. Employees will be paid next on Monday, June 5, 2017. 3. Plex Paintball receives a commission from Pizza Shop next door for all pizzas sold to customers using Plex Paintball's facility. The amount owing for May is $500, which Pizza Shop will pay on June 7, 2017. 4. The May utility bill for $550 was unrecorded on May 31. Plex Paintball paid the bill on June 9, 2017. 5 . Plex Paintball sold some equipment on May 1, 2017, in exchange for a $8,400, 6% note receivable. The principal and interest are due on August 1, 2017. For each of the above items, prepare the adjusting entry required at May 31, 2017. (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.) Nn. Date Account Titles and Explanation Debit 1, May 11 2. May 31 3. May 11 4. May 11 5. May 31 SHOW LEST OF ACCOUNTS For each of the above items, prepare the journal entry to record the related cash transaction in 2017. Assume all payments and receipts are made as indicated. (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. Record journal entries in the order presented in the problem.) Account Titles and Explanation Credit June 5Question 4 Plex Paintball records adjusting entries on an annual basis. The company has the following information available on accruals that must be recorded for the year ended May 31, 2017. 1. Plex Paintball has a 4% note payable with its bank for $45,000. Interest is payable on a monthly basis on the first of the month. 2. Plex Paintball is open seven days a week and employees are paid (Salary) a total of $3,220 every Monday for a seven-day (Monday- Sunday) workweek. May 31, 2017, is a Wednesday, so employees will have worked three days (Monday-Wednesday) before the year end that they have not been paid for as at May 31. Employees will be paid next on Monday, June 5, 2017. 3. Plex Paintball receives a commission from Pizza Shop next door for all pizzas sold to customers using Plex Paintball's facility. The amount owing for May is $500, which Pizza Shop will pay on June 7, 2017. 4. The May utility bill for $550 was unrecorded on May 31. Plex Paintball paid the bill on June 9, 2017. 5 . Plex Paintball sold some equipment on May 1, 2017, in exchange for a $8,400, 6% note receivable. The principal and interest are due on August 1, 2017. For each of the above items, prepare the adjusting entry required at May 31, 2017. (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.) Nn. Date Account Titles and Explanation Debit 1, May 11 2. May 31 3. May 11 4. May 11 5. May 31 SHOW LEST OF ACCOUNTS For each of the above items, prepare the journal entry to record the related cash transaction in 2017. Assume all payments and receipts are made as indicated. (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. Record journal entries in the order presented in the problem.) Account Titles and Explanation Credit June 5
