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Yorkton Cleaners prepared an unadjusted trial balance on December 31, 2022, the company's year-end. PART 1. Prepare the required adjusting entries based on the unadjusted
Yorkton Cleaners prepared an unadjusted trial balance on December 31, 2022, the company's year-end. PART 1. Prepare the required adjusting entries based on the unadjusted trial balance and the following information. Show your calculations in the explanation line and no other explanations are required. Round your answers to the nearest dollar. a) Depreciation of equipment is recorded using the straight-line method over 10 years. Computer equipment was purchased on Feb 1 of this year for $137,500 and will have $25,000 value at the end of its useful life. b) Cleaning services provided in December have not had the bills sent to the customers yet. The total of these services for December is $12,300. c) An inventory of supplies was done on December 31 and there were \$2650 worth of supplies on hand. d) At the beginning of December, the company received a contract to provide cleaning services for a business for the next 6 months. The total contract was for $6,000 and the entire amount was received in cash on December 1. e)Yorkton Cleaning is open 7 days a week. This year, December 31,2022 falls on a Saturday and the weekly pay period ends on Sundays. The employees will be paid on Sunday, January 1, 2023 for their normal 7 day pay period, Monday to Sunday. The daily cost of the payroll is $160 per day. f) The company loaned a customer $5,500 on April 1, 2022 at an interest rate of 11% per annum. To date, the customer has not made any payments of principal or interest. PART 2. Prepare the journal entry to record the payment of the payroll on January 1,2023. The information is in Part 1e)
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