Question

q5- chapter 4 ;Greenock Limited has the following information available for accruals for the year ended December 31, 2018. The company adjusts its accounts annually.

1.		The December utility bill for $495 was unrecorded on December 31. Greenock paid the bill on January 21.
2.		Greenock is open seven days a week and employees are paid a total of $3,900 every Monday for a seven-day (Monday–Sunday) workweek. December 31 is a Monday, so employees will have worked one day (Monday, December 31) that they have not been paid for by year end. Employees will be paid next on Monday, January 7.
3.		Greenock signed a $45,200, 6% bank loan on November 1, 2017, due in two years. Interest is payable on the first day of each following month and was last paid on December 1.
4.		Greenock receives a fee from Pizza Shop next door for all pizzas sold to customers using Greenock’s facility. The amount owing for December is $460, which Pizza Shop will pay on January 4. (Hint: Use the Fees Earned account.)
5.		Greenock rented some of its unused warehouse space to a client for $6,520 a month, payable the first day of the following month. It received the rent for the month of December on January 2.

Part 1

For each situation, prepare the adjusting entry required at December 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)

No.	Date	Account Titles and Explanation	Debit	Credit
1.	Dec. 31	enter an account title for the adjusting entry	enter a debit amount	enter a credit amount
		enter an account title for the adjusting entry	enter a debit amount	enter a credit amount
2.	31	enter an account title for the adjusting entry	enter a debit amount	enter a credit amount
		enter an account title for the adjusting entry	enter a debit amount	enter a credit amount
3.	31	enter an account title for the adjusting entry	enter a debit amount	enter a credit amount
		enter an account title for the adjusting entry	enter a debit amount	enter a credit amount
4.	31	enter an account title for the adjusting entry	enter a debit amount	enter a credit amount
		enter an account title for the adjusting entry	enter a debit amount	enter a credit amount
5.	31	enter an account title for the adjusting entry	enter a debit amount	enter a credit amount
		enter an account title for the adjusting entry	enter a debit amount	enter a credit amount

eTextbook and Media

List of Accounts

Part 2

For each situation, prepare the journal entry to record the subsequent cash transaction in 2019. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 21	enter an account title for the adjusting entry on January 21	enter a debit amount	enter a credit amount
	enter an account title for the adjusting entry on January 21	enter a debit amount	enter a credit amount
Jan. 7	enter an account title for the adjusting entry on January 7	enter a debit amount	enter a credit amount
	enter an account title for the adjusting entry on January 7	enter a debit amount	enter a credit amount
	enter an account title for the adjusting entry on January 7	enter a debit amount	enter a credit amount
Jan. 1	enter an account title for the adjusting entry on January 1	enter a debit amount	enter a credit amount
	enter an account title for the adjusting entry on January 1	enter a debit amount	enter a credit amount
Jan. 4	enter an account title for the adjusting entry on January 4	enter a debit amount	enter a credit amount
	enter an account title for the adjusting entry on January 4	enter a debit amount	enter a credit amount
Jan. 2	enter an account title for the adjusting entry on January 2	enter a debit amount	enter a credit amount
	enter an account title for the adjusting entry on January 2	enter a debit amount	enter a credit amount

Answer 1

1
		Debit	Credit
Dec 31	Utilities expense	495
	Accounts Payable		495
Dec 31	Salaries and wages expense	557		=3900/7
	Salaries and wages payable		557
Dec 31	Interest expense	226		=45200*6%/12
	Interest payable		226
Dec 31	Accounts Receivable	460
	Fees Earned		460
Dec 31	Accounts Receivable	6520
	Rent Revenue		6520
2
Jan 21	Accounts Payable	495
	Cash		495
Jan 7	Salaries and wages expense	3343		=3900/7*6
	Salaries and wages payable	557
	Cash		3900
Jan 1	Interest payable	226
	Cash		226
Jan 4	Cash	460
	Accounts Receivable		460
Jan 2	Cash	6520
	Accounts Receivable		6520