Question

CALCULATOR PRINTER VERSION 4 BACK NEXT Exercise 4-17 Marigold Corp. has the following information available for accruals for the year ended December 31, 2017. The company adjusts its accounts annually. 1. 2. 3. The December utility bill for $330 was unrecorded on December 31, Marigold paid the bill on January 11. Marigold is open 7 days a week and employees are paid a total of $2,730 every Monday for a 7-day (Monday-Sunday) workweek. December 31 is a Thursday, so employees will have worked 4 days (Monday, December 28-Thursday, December 31) that they have not been paid for by year-end. Employees will be paid next on January 4. Marigold signed a $35,100, 5% bank loan on November 1, 2016, due in 2 years. Interest is payable on the first day of each following month (For example, interest incurred during November is paid on December 1.). Marigold receives a fee from Pizza Shop next door for all pizzas sold to customers using Marigold's facility. The amount owed for December is $230, which Pizza Shop will pay on January 4. (Hint: Use the Service Revenue account.) Marigold rented some of its unused warehouse space to a client for $4,680 a month, payable the first day of the following month. It received the rent for the month of December on January 2. 4. 5. comhor 71 using the tahular summary that follows. (Round all calculations to the nearest dollar. If a transaction results in hilir ar Fruity

Answer 1

a Recording Adjustments at December 31, 2017 Assets Liabilities Stockholder's Equity Working Sal. & Wages Pay. + Com. Stock + 2017 Cash + Int. Pay. Rev Accts. Rec. = Accts. Pay. + $ 330 Diy Dec-31 Exp 330 1,560 146 Dec-31 $ $ $ $ 1,560 (2730/7) *4 days 35100*0.05*(1/12) Dec-31 $ 146 230 230 Dec-31 Dec-31 Total $ $ $ 4,680 4,910 $ $ $ 4,680 4,910 $ $ 330 $ 146 $ 1,560 $ $ 2,036 $ b Recording Subsequent cash transactions in 2018 Assets Liabilities Stockholder's Equity Working + Sal. & + Wages Pay. + Com. Stock + Accts. Rec. Int. Pay. Rev Exp Div = Accts. Pay. + $ (330) $ (1,560) 2018 Jan-11 $ Jan-04 $ Jan-01 $ Jan-04 $ Jan-02 $ Total $ Cash + (330) (1,560) (146) 230 4,680 2,874 (2730/7) *4 days 35100*0.05*(1/12) $ (146) $ $ $ $ (230) (4,680) (4,910) $ (330) $ (146) $ (1,560) $ $ $ $ Note: Please comment down for any further clarifiactions.