Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
The following transactions occurred for the Falwell Company 1. A three year fire insurance policy was purchased on July 1, 2021, for $12,600. The company
The following transactions occurred for the Falwell Company 1. A three year fire insurance policy was purchased on July 1, 2021, for $12,600. The company debited insurance expense for the entire amount 2 Depreciation on equipment totaled $12,500 for the year. 3. Employee salaries of $17,000 for the month of December will be paid in early January 2022. 4. On November 1, 2021, the company borrowed $210,000 from a bank. The note requires principal and Interest at 12% to be paid on April 30, 2022 5. On December 1, 2021, the company received $6.300 In cash from another company that is renting office space in Falwell's building The payment, representing rent for December, January, and February was credited to deferred rent revenue. 6. On December 1, 2021, the company received $6,300 in cash from another company that is renting office space in Falwell's building The payment, representing rent for December, January, and February was credited to rent revenue rather than deferred rent revenue for $6.300 on December 1, 2021. Prepare the necessary adjusting entries at December 31, 2021 for each of the above situations. Assume that no financial statements were prepared during the year and no adjusting entries were recorded. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1 A three-year fire insurance policy was purchased on July 1, 2021, for $12,600. The company debited insurance expense for the entire amount. 2 Depreciation on equipment totaled $12,500 for the year. 3 Employee salaries of $17,000 for the month of December will be paid in early January 2022. 4 On November 1, 2021, the company borrowed $210,000 from a bank. The note requires principal and interest at 12% to be paid on April 30, 2022. 5 On December 1, 2021, the company received $6,300 in cash for December, January, and February rent. Deferred rent revenue was credited. Note : = journal entry has been entered Record entry Clear entry
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669c0caca6016_892669c0cac44d56.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669c0cad6373f_892669c0cacde84a.jpg)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started