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The information necessary for preparing the 2024 year-end adjusting entries for Winter Storage appears below. Winter's fiscal year- end is December 31. 1. On October 1, 2024, Winter Storage lent $150,000 to another company. A note was signed with principal and 8% interest to be paid on September 30, 2025. 2. On November 1, 2024, the company paid its landlord $34,500 representing rent for the months of November through January. Prepaid Rent was debited for the entire amount. 3. On August 1, 2024, Winter Storage collected $39,000 in advance rent from another company that is renting a portion of Winter Storage's building. The $39,000 represents one year's rent, and the entire amount was credited to Deferred Revenue. 4. Depreciation for the year is $27,000. 5. Vacation pay for the year that had been earned by employees but not paid to them or recorded is $17,000. The company records vacation pay as Salaries Expense. 6. Winter Storage began the year with $35,000 in its Supplies account. During the year $71,000 in supplies were purchased and debited to the Supplies account. At year-end,supplies costing $31,000 remain on hand. Required: Prepare the necessary adjusting entries on December 31, 2024. (Do not round intermediate calculations. If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list View journal entry worksheet

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The adjusting entry will be as follows: 1. dr Interest Receivable 3000 cr Interest Revenue 3000 2. dr Rent Expense 31500 cr Prepaid Rent 31500 3. dr Rent Revenue 7500 cr Unearned Rent Revenue 7500 4. dr Depreciation Expense 27,000 cr Accumulated depreciation 27,000 5. dr Salaries Expense 17,000 cr Salaries Payable 17,000

Making adjusting entries at the conclusion of each accounting period is a vital stage in the accounting cycle. An adjustment entry is one that is created to properly allocate each accounting period's income and expense amounts. In order to ensure that the financial accounts at the end of the year are correct and current, it updates previously recorded journal entries.

A general ledger entry known as a "adjustment journal entry" is made at the conclusion of an accounting period to report any unrealized income or costs during the time.

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