rosa21
Feb 9, 2011, 11:45 AM
Action Quest Games records adjusting entries on an annual basis. The company has the following information available on accruals that must be recorded for the year ended December 31, 2011:
1)The December utility bill for $505 was unrecorded on December 31. Action Quest paid the bill on January 17, 2012.
2) Action Quest is open seven days a week and employees are paid a total of $5,075 every Monday for a seven-day (Monday–Sunday) workweek. December 31, 2011, is a Saturday, so employees will have worked six days (Monday–Saturday) since their last payday. Employees will be paid next on January 2, 2012.
3) Action Quest has a 5% note payable with its bank for $51,000. Interest is payable on a monthly basis on the first of the month.
4)Action Quest receives a commission from Pizza Shop next door for all pizzas sold to customers using Action Quest's facility. The amount owing for December is $560, which Pizza Shop will pay on January 5, 2012.
5)Action Quest sold some equipment on November 1, 2011, in exchange for a $15,000, 6% note receivable. The principal and interest are due on February 1, 2012.
For each of the above, prepare the adjusting entry required at December 31, 2011. Enter adjusting entries in the same order as listed above. Round answers to the nearest dollar.
Dec. 31
Dec. 31
Dec. 31
Dec. 31
For each of the above, prepare the journal entry to record the related cash transaction in 2012. Assume all payments and receipts are made as indicated. Enter adjusting entries in the same order as listed above. Round your answers to the nearest dollar. List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.
Jan. 17
Jan. 2
Jan. 1
Jan. 5
Feb. 1
1)The December utility bill for $505 was unrecorded on December 31. Action Quest paid the bill on January 17, 2012.
2) Action Quest is open seven days a week and employees are paid a total of $5,075 every Monday for a seven-day (Monday–Sunday) workweek. December 31, 2011, is a Saturday, so employees will have worked six days (Monday–Saturday) since their last payday. Employees will be paid next on January 2, 2012.
3) Action Quest has a 5% note payable with its bank for $51,000. Interest is payable on a monthly basis on the first of the month.
4)Action Quest receives a commission from Pizza Shop next door for all pizzas sold to customers using Action Quest's facility. The amount owing for December is $560, which Pizza Shop will pay on January 5, 2012.
5)Action Quest sold some equipment on November 1, 2011, in exchange for a $15,000, 6% note receivable. The principal and interest are due on February 1, 2012.
For each of the above, prepare the adjusting entry required at December 31, 2011. Enter adjusting entries in the same order as listed above. Round answers to the nearest dollar.
Dec. 31
Dec. 31
Dec. 31
Dec. 31
For each of the above, prepare the journal entry to record the related cash transaction in 2012. Assume all payments and receipts are made as indicated. Enter adjusting entries in the same order as listed above. Round your answers to the nearest dollar. List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.
Jan. 17
Jan. 2
Jan. 1
Jan. 5
Feb. 1