Vigeland Company completed the following transactions during Year 1. Vigeland's fiscal year ends...
Question:
Vigeland Company completed the following transactions during Year 1. Vigeland's fiscal year ends on December 31.
| Jan. 15 | Purchased and paid for the merchandise. The invoice amount was $26,500; assume a perpetual inventory system. |
| Apr. 1 | Borrowed $700,000 from Summit Bank for general use; signed a 10-month, 6% annual interest-bearing note for the money. |
| June 14 | Received a $15,000 customer deposit for services to be performed in the future. |
| July 15 | Performed $3,750 of the services paid for on June 14. |
| Dec. 12 | Received electric bill for $27,860. Vigeland plans to pay the bill in early January. |
| 31 | Determined wages of $15,000 were earned but not yet paid on December 31 (disregard payroll taxes). |
Prepare the adjusting entries required on December 31.
Adjusting Entries
Adjusting entries are journal entries recorded in the company's books and is required by International Financial Reporting Standards (IFRS) to reflect the current income and expenses amounts that is to be reported in the financial statements. Adjusting entries can be done on a monthly basis depending on the company's requirements.
Answer and Explanation: 1
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View this answerIn this problem, we will only prepare adjusting entries that is required to reflect on December 31. Otherwise, no entry required.
Jan. 15 Purchased...
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