Required information P4-2 (Algo) Recording Adjusting Entries L04-1 [The following information applies to the questions displayed below.) All of the current year's entries for Zimmerman Company have been made, except the following adjusting entries. The company's annual accounting year ends on December 31. a. On September 1 of the current year, Zimmerman collected six months' rent of $7,860 on storage space. At that date, Zimmerman debited Cash and credited Unearned Rent Revenue for $7,860. b. On October 1 of the current year, the company borrowed $20,400 from a local bank and signed a one-year, 14 percent note for that amount. The principal and interest are payable on the maturity date. c. Depreciation of $2,800 must be recognized on a service truck purchased in July of the current year at a cost of $20,000 d. Cash of $3,600 was collected on November of the current year, for services to be rendered evenly over the next year beginning on November 1 of the current year. Unearned Service Revenue was credited when the cash was received e. On November 1 of the current year, Zimmerman pold a one-year premium for property Insurance, 59.240, for coverage starting on that date. Cash was credited and Prepaid Insurance was debited for this amount The company earned service revenue of $4,100 on a special job that was completed December 29 of the current year. Collection will be made during January of the next year. No entry has been recorded. g. At December 31 of the current year, wages earned by employees totaled $13,600. The employees will be paid on the next payroll date in January of the next year. h On December 31 of the current year, the company estimated it owed $570 for this year's property taxes on land. The tax will be paid when the bill is recelved in January of next year. P4-2 Part 2 Din the han inte funciona afhend Journal entry worksheet 1 2 3 4 5 6 7 8 nces On September 1 of the current year, Zimmerman collected six months' rent of $7,860 on storage space. At that date, Zimmerman debited Cash and credited Unearned Rent Revenue for $7,860. Note: Enter debits before credits. Dobit Credit Transaction General Journal View general journal Clear entry Record entry Next > 1.42 points 2. Prepare the adjusting entry required for each transaction at December 31 of the current year. (If no e transaction/event, select "No Journal entry required" In the first account fleld.) View transaction list eBook Journal entry worksheet Print 1 2 3 4 5 6 7 8 References Depreciation of $2,800 must be recognized on a service truck purchased in July of the current year at a cost of $20,000. Note: Enter debits before credits. Transaction General Journal Dobit Credit Record entry Clear entry View general journal View transaction list eBook Journal entry worksheet Print View transaction list Journal entry worksheet
