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The information necessary for preparing the 2016 year-end adjusting entries for Vito's Pizza Parlor appears below. Vito's fiscal year-end is December 31 a. On July
The information necessary for preparing the 2016 year-end adjusting entries for Vito's Pizza Parlor appears below. Vito's fiscal year-end is December 31 a. On July 1,2016, purchased $12,000 of IBM Corporation bonds at face value. The bonds pay interest twice a year on January 1 and July 1 . The annual interest rate is 11%. b. Vito's depreciable equipment has a cost of $38,400, a six-year life, and no salvage value. The c. On November 1, 2016, the bar area was leased to Jack Donaldson for one year. Vito's received $7,200 equipment was purchased in 2014. The straight-line depreciation method is used d. On April 1, 2016, the company paid $2,880 for a two-year fire and liability insurance policy and debitecd e. On October 1, 2016, the company borrowed $24,000 from a local bank and signed a note. Principal and t. At year-end, there is a $2,000 debit balance in the supplies (asset) account. Only $740 of supplies representing the first six months' rent and credited deferred rent revenue. insurance expense interest at 11% will be paid on September 30, 2017 remain on hand. Required: 1. Prepare the necessary adjusting iounal entries at December 31, 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.) View transaction list Journal entry worksheet On July 1, 2016, purchased $12,000 of IBM Corporation bonds at face value. The bonds pay interest twice a year on January 1 and July 1. The annual interest rate is 11%. Note: Enter debits before credits. 2 3 4 8
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