Reference no: EM132494908

On September 1, 2021, a company lends $50,000 to a customer with 10% interest. The note and interest are due in twelve months. The note receivable is recorded for $50,000 on September 1, but no other adjustments are made in 2021. At the end of 2021, which of the following is true?

Question 1: Preparing and Journalizing Adjusting each of the following separate situations, prepare the necessary adjustments (a) using the statement effects template, and (b) in journal entry form

Point 1. Unrecorded depreciation on equipment is $610.

Point 2. On the date for preparing financial statements, an estimated utilities expense of $390 has been incurred, but no utility bill has yet been received or paid.

Point 3. On the first day of the current period, rent for four periods was paid and recorded as a $2,800 debit to Prepaid Rent and a $2,800 credit to Cash.

Point 4. Nine months ago, the Hartford Financial Services Group sold a one-year policy to a customer and recorded the receipt of the premium by debiting Cash for $624 and crediting Contract Liabilities for $624. No adjusting entries have been prepared during the nine-month period. Hartford's annual financial statements are now being prepared.

Point 5. At the end of the period, employee wages of $965 have been incurred but not yet paid or recorded.

Point 6. At the end of the period, $300 of interest income has been earned but not yet received or recorded