Part 3. Adjusting entries Please help Cheeky Cheeses, Inc. prepare adjusting jou
ID: 2405046 • Letter: P
Question
Part 3. Adjusting entries Please help Cheeky Cheeses, Inc. prepare adjusting journal entries that need to be recorded on December 31, 2018 based on below information. Cheeky Cheeses purchased a delivery truck on January 1, 2018 for $20,000. The truck is expected to last 4 years with no residual value. Cheeky Cheeses borrowed a four-year note of $60,000 on April 1, 2017. The note requires the company to pay 1% interest every six months. Cheeky Cheeses has made a. b. al every interest payment on time. Cheeky Cheeses prepaid a two-year rent of $36,000 for a new factory on October 1, 2018 and immediately started using the factory Cheeky Cheeses had $1,500 in supplies on December 31, 2017. The company bought $9,000 of supplies during 2018. Based on a physical count of supplies on December 31, 2018, the company still has $3,000 in supplies. c. d. e. Cheeky Cheeses pays employee wages with two equal cash payments on the 1st and 16h of every month. The monthly wages expense is $12,000. (Please put the question number (a, b., c., d., e.) in the # column.)
Explanation / Answer
working:
supplies expense = beginning supplies balance + purchases - closing supplies
=>1500 + 9000-3000
=>$7,500.
the following is the journal entry:
# account title debit credit d supplies expense 7,500 ..............To Supplies a/c 7,500