60.1K

Verified Solution

Link Copied!

Problem 3-08A A review of the ledger of Greenberg Company at December 31, 2021, produces the following important data for the preparation of annual adjusting entries: 1. Prepaid Advertising, December 31, 2021, unadjusted balance, $15,600. This balance consists of payments on two advertising contracts for monthly advertising in two trade magazines. The terms of the contracts are as follows: 12 Contract First Month Amount Number of Magazine Issues A650 May 2021 $5,000 B974 October 2021 10,600 $15,600 2. Vehicles, December 31, 2021, balance, $70,000. The company owns two vehicles used for delivery purposes. The first, purchased for $30,000 on January 2, 2019, has an estimated seven-year useful life. The second, purchased for $40,000 on June 1, 2020, has an estimated eight-year useful life. 3. Notes Payable, December 31, 2021, balance, $85,000. This consists of an eight-month, 6.5% note, dated August 1. Interest is payable at maturity. 4. Salaries Payable, December 31, 2021, unadjusted balance, $0. There are nine salaried employees. Salaries are paid every following Monday for a six-day workweek (Monday-Saturday). Six employees receive a salary of $750 per week, and three employees earn $600 per week. December 31, 2021, is a Friday. 5. Unearned Revenue, December 31, 2021, unadjusted balance, $270,000. Greenberg began renting office space to tenants in its new building on November 1. At December 31, Greenberg had the following rental contracts that were paid in full for the entire term of the lease: Rental Term Nov. 1, 2021, to Apr. 30, 2022 Dec. 1, 2021, to May 31, 2022 Monthly Rent Number of Tenants Total Rent Paid $4,000 $144,000 7,000 126,000 $270,000 Your answer is partially correct. Try again. Prepare the adjusting entries at December 31, 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to the nearest whole dollar, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) No. Date Account Titles and Explanation Debit Credit 1. Dec. 31 Advertising Expense Prepaid Advertising 2. Dec. 31 (To record depreciation expense for the first vehicle.) Dec. 31 (To record depreciation expense for the second vehicle.) 3. Dec. 31 ... 4. Dec. 31 5. Dec. 31

Answer & Explanation Solved by verified expert

See Answer