The following information is available for the year-ended December 31, 2022 for Sport Court Resurfacing (SCR) Corporation:
The following information is available for the year-ended December 31, 2022 for Sport Court Resurfacing (SCR) Corporation:
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 2EA: Consider the following accounts and determine if the account is a current liability, a noncurrent...
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The following information is available for the year-ended December 31, 2022 for Sport Court Resurfacing (SCR) Corporation:
| 1. | On April 1, 2022 signed a bank loan for $9,900 with interest and principal repayable in one-year. The interest rate on the loan is 4%. | |
| 2. | SCR pays its employees $34,200 every other Friday which reflects a 2-week pay period or 10 working days (Monday to Friday each week). December 31, 2022 falls on a Monday so employees will not get paid for the work they completed on this day until January 11, 2023. The total amount of salaries paid on January 11, 2023 was $34,200. | |
| 3. | Estimated income tax payable for the year end is $7,840 which is payable January 31, 2023. | |
| 4. | Utility expenses of $490 for the month of December were unrecorded and unpaid. They are due January 21, 2023. | |
| 5. | SCR provided tennis court resurfacing to a local tennis club. At the end of the year the club owed SCR $17,800. SCR billed the club on January 2, 2023 and collected the full amount on January 10, 2023. |
Transcribed Image Text:Prepare the adjusting entries required on December 31, assuming SCR records adjusting entries annually. (Credit account titles are
automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Record journal
entries in the order presented in the problem.)
Date
Account Titles and Explanation
Debit
Credit
Dec. 31
Dec. 31
Dec. 31
Dec. 31
Dec. 31
List of Accounts
Transcribed Image Text:Prepare the subsequent entry for each accrual as follows: (1) collection of the $17,800 on January 10, 2023; (2) payment of
salaries on January 11, 2023; (3) payment of utility expenses on January 21, 2023; (4) payment of income tax on January 31,
2023; and (5) repayment of bank loan on March 31, 2023. (Credit account titles are automatically indented when the amount is
entered. Do not indent manually. List all debit entries before credit entries.)
Date
Account Titles and Explanation
Debit
Credit
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