Reference no: EM132472343
A review of the ledger of Waterway Company at December 31, 2020, produces the following data pertaining to the preparation of annual adjusting entries.
Point 1. Salaries and Wages Payable $0. There are eight employees. Salaries and wages are paid every Friday for the current week. Five employees receive $720 each per week, and three employees earn $450 each per week. December 31 is a Tuesday. Employees do not work weekends. All employees worked the last 2 days of December.
Point 2. Unearned Rent Revenue $395,340. The company began subleasing office space in its new building on November 1. Each tenant is required to make a $5,560 security deposit that is not refundable until occupancy is terminated. At December 31, the company had the following rental contracts that are paid in full for the entire term of the lease.
Date Term (in months) Monthly Rent Number of Leases
Nov. 16 $6,0705
Dec. 16 $6,8004
Point 3. Prepaid Advertising $10,800. This balance consists of payments on two advertising contracts. The contracts provide for monthly advertising in two trade magazines. The terms of the contracts are as shown below.
- Contract
- Date
- Amount
- Number of Magazine Issues
- A650May 1$4,80012B974Oct. 16,00024
- The first advertisement runs in the month in which the contract is signed.
Point 4. Notes Payable $56,200. This balance consists of a note for one year at an annual interest rate of 12%, dated June 1.
Question 1: Prepare the adjusting entries at December 31, 2020.
|
Calculate pretermined overhead rate for each year
: What is correct way to Calculate Pretermined overhead rate for each year? POHR = total overhead/average BUDGETED direct labor of 2018-2019?
|
|
Prepare the adjusting journal entries required at january
: Prepare the adjusting journal entries required at January 31, 2008 based on the A one-year insurance policy costing $3,600 was purchased on January.
|
|
Find annual depreciation expense for first and second years
: Find annual depreciation expense for the first and second years using straight-line depreciation, assuming Sheridan has a calendar year end.
|
|
Determine to access jardine matheson recent annual report
: Access Jardine Matheson's most recent annual report on the company's website . Review the company's consolidated financial statement
|
|
Prepare the adjusting entries at december
: Prepare the adjusting entries at December 31, 2020. Prepaid Advertising $10,800. This balance consists of payments on two advertising contracts.
|
|
Discuss the statement Many people believe that the US GAAP
: Discuss the statement Many people believe that the U.S. Generally Accepted Accounting Principles (GAAP) are a rules-based approach to setting standards
|
|
Provide the cost structure
: Provide the cost structure. How to explain this situation - why A, B, C are profitable, and D is having minus profit. The same production technology
|
|
What mission co reports for the note payable
: What Mission Co. reports for the note payable and related interest payable on its balance sheet at December 31, 2019, and on its income statement
|
|
Calculate and what is the npv of the project
: You can purchase this project for $608k. If your firm's cost of capital (aka required rate of return) is 12.5%, what is the NPV of this project?
|