Reference no: EM133033499
Question - ABC Company, adjusts its accounts monthly and closes its accounts annually on December 31. The following information is available as a source for preparing the adjusting entries at December 31, 2020:
1. An eight-month bank loan in the amount of $12,000 had been obtained on October 1. Interest is to be computed at an annual rate of 8 percent.
2. Depreciation on buildings is based on a 20-year life. The original cost of the buildings was $720,000.
3. Salaries earned by employees that have not yet been paid amount to $1,515.
4. Records show that $800 of cash receipts originally recorded as unearned revenue had been earned as of December 31.
5. On October 1, 2020 the company paid $9,000 for rent through March 31, 2021.
Required - Pass the necessary adjusting entries?