There were no supplies listed in the balance sheet under assets. However, you discover that supplies costing $750 were on hand at December 31.
E2-16 External transactions and adjusting entries 0 LO2-3, LO2-6
Feb. 1
On January 31, 2022
Apr. 1
July 17
In ac Req Dete
Remained on hand. A customer borrowed $6,000 and signed a note requiring 8% interest on April 30, 2022.
Nov. 1
The customer to pay principal and interest.
2-20 Worksheet Appendix 2A
The is th
Required:
1. Record each transaction in general journal form. Omit explanations.
2. Prepare any necessary adjusting entries at the year-end on December 31, 2021. No adjusting entries were recorded during the year for any item.
E2-17 During the course of your examination of the financial statements of the Hales Corporation for the year ended Accrual December 31, 2021, you discover the following:
a. An insurance policy covering three years was purchased on January 1, 2021, for $6,000. The entire amount was debited to insurance expense and no adjusting entry was recorded for this item.
b. During 2021, the company received a $1,000 cash advance from a customer for merchandise to be manufactured determination and shipped in 2022. The $1,000 was credited to sales revenue. No entry was recorded for the order of merchandise.
LO2-5, L02-9 There were no supplies listed in the balance sheet under assets. However, you discover that supplies costing $750 were on hand at December 31.
September 30, 2022. No accrual was recorded for interest.
Determine the proper amount of net income for 2021.
Required:
